There are way too many people in this world that blindly contribute to their 401k and then pray that it’ll grow into something that they can retire on. Does this sound like a good plan to you? What happens if the stock market crashes? Do you think your 401k money (that’s invested in the stock market…) is safe?
What Happens If The Stock Market Crashes? Is Your Money Safe?
The short answer is…. of course not. No invested money is guaranteed safety. If you are invested heavily in your 401k and the overall stock market tanks, you’re headed down with the ship.
To show you what I mean, let’s take a look at the market crash of 2008.
The average 401k account balance was $75,791 in 2006, then $78,411 in 2007, and then…..OUCH…. just $56,030 in 2008. In one year the average 401k balance went down by nearly 30%! Like . . . → Read More: What Happens If The Stock Market Crashes? Is Your Money Safe??
Our little girl is 4 months old (time is flying!). We want to make sure she has a quality college education when she grows up, and what better way to do that than to put some money aside today that could grow into a large sum in the future?
But how on earth does one save for a child’s education? Do you simply put money into:
a savings account? savings bonds? stocks? a money market account?
There are so many options, it can really be quite terrifying to decide what to do. Because of this, many people simply do nothing. They fully intended to put something toward their child’s education, but suddenly, in the blink of an eye, their son is 18 years old and there are only two options for him:
Take on a massive amount of student loan debt, or Don’t go to school
DO NOT BE THIS . . . → Read More: How to Save For Your Child’s Education
Wish you had a million dollars? How about a billion? That’s right! Billion with a “B”! Few dare to dream so lofty, but it’s absolutely possible. And actually, it’s pretty simple. It’ll just take a few years. Well, that may be an understatement, but let’s not get ahead of ourselves. Instead, let’s check out two very solid methods to become a billionaire family.
How to Become a Billionaire Family
The typical route to become a billionaire family is this:
Start your own company Grow wildly Go public with it (IPO) or sell it
But you know what? Not everyone’s an entrepreneur, and some people just aren’t cut out for working on the same project for 15 hours a day, 365 days a year.
So is there another way? Can the average person amass a fortune of billions of dollars? The answer, yes and no… Let me explain.
The Average Way . . . → Read More: How to Become a Billionaire Family
Nearly a third of all workers admit to having less than $1,000 saved for retirement. Fifty-seven percent replied that they have less than $25,000 saved. Without knowing the exact retirement savings by age to reach a comfortable retirement, it’s still pretty obvious that the average American is woefully behind.
Below are the stats for the median retirement savings by age in 2013. Based on the recent news of people continually ignoring their retirement savings, I assume today’s numbers aren’t much different. So, here’s the big question, “Is it good enough to be average?”
The average Social Security payout in June 2016 was $1,234.98. Add to that an average spousal benefit of $699.77, and that provides the average couple with an income of $1,934.75.
According to U.S. News, the average cost of retirement per month is $3,411.50. This means that the average retiree needs to come up with $1,476.75 on . . . → Read More: Retirement Savings by Age – Are You on Track?
I first learned about using “debt as a tool” in my job at a bank, but there were some major pot holes in my new “road to success.” I used things like credit cards and car loans to “get ahead” and establish my credit. Sounds pretty normal, right? The problem was, I didn’t do anything else. Using debt trumped the importance of saving for emergencies, budgeting my monthly expenses, investing while I was young, and spending less than I made each month. Becoming debt-free was not on my radar. How did things go for me? Well, I spent the first half of my twenties working hard with very little to show for it. I had no budget, no long-term plan, no debt-free plan, almost no savings, and a glowing credit report. I was missing some MAJOR pieces to a healthy financial foundation (basically all of them) and headed for disaster. . . . → Read More: How Becoming Debt-Free at 25 Changed My Life
You are never too young to learn how to invest your money. You are never too broke to invest in your future either. When we are young, we are told to be carefree, to enjoy life and live in the moment. What we aren’t told is that one day we will get old and want to retire. By the time most people realize that, they have a lot of catching up to do. Below are a few tips so that you can start investing in your future now, even if it seems so far away.
This post has been written by our regular writer, Kimberly Studdard. Enjoy!
Do Your Research
There is so much that goes on in the world of investing. My first tip is to make sure that you do extensive research BEFORE you start investing your money. Read different books from accredited sources, read articles on websites . . . → Read More: Investing When You’re Young: Even When You Don’t Make Much Money
On June 24th, I wrote about how I’m prepping for the next stock market crash. Today, just 12 days after I shifted around my investments (8 days after the post), I can already share with you how it’s kicking butt!
In the post, I outlined my simple plan:
We got out of debt completely We’re holding onto our current rental property We’re starting to hoard cash for the next rental investment, likely by the end of December 2017 after the market has crashed and properties are plentiful again Continuing to invest in our 401k – the plan is to buy low and own a bunch more shares once the market bounces back We’re investing in precious metals
So far, just 12 days later, we’re laughing all the way to the bank… 😉
How We Earned 23% on Our Investment in Just 12 Days
I still can’t quite believe it. In . . . → Read More: How I Earned 23% on My Investment in Just 12 Days
Investing your finances in a range of different assets is something many people in a stable financial position decide to do. It is a popular way to boost personal finances and it is important that your investment portfolio is diversified in order to hedge against risk and increase the chances of it being successful.
For those who are new to investing, managing their own portfolio can be a tricky task. You will need a good knowledge of the markets to make the best moves and investments. This, and the following reasons, are why outsourcing your investment management to professionals such as Tilney can be a good idea.
1) Personalised Service
All investment management services will offer a personalised service to ensure that investments are made in line with your wants and needs. A dedicated investment manager will be put in charge of your investments, who you will be able to . . . → Read More: Top 3 Reasons to Outsource Investment Management
“U.S. stocks are now about 80% overvalued,” proclaimed the well-known economist Andrew Smithers. Billionaire Carl Icahn stated, “The public is walking into a trap as they did in 2007.” Robert Kiyosaki and Warren Buffett are even saying that the next stock market crash will soon be here.
By now it’s no secret. The stock market has been teetering for nearly a year and the next stock market crash will soon be upon us. It might be tomorrow, it might be next month, or maybe it’ll even stave itself off for a full year. There’s no mistake about it though. It’s coming.
So the next logical question is, “Okay…what do I do about it?”
How I’m Prepping For the Next Stock Market Crash
Now I’m no investment professional, so I’m not going to tell you to invest in this company or that company. I’ll leave that decision up to you. . . . → Read More: How I’m Prepping For the Next Stock Market Crash
Financial Independence – what is it really? Is it when you finally rid yourself of all debts and can actually afford to buy some bling with cash? Or is it when you finally have enough money socked away for that inevitable future emergency?
There are many different opinions about financial independence. Some of them are blatantly wrong (like the emergency fund statement above), while others are close but are stretched a bit so that financial independence becomes more achievable for them.
A little advice for you. Don’t dumb down financial independence just because you’re not even close. Learn what it truly is, decide if it’s for you. And if it is, then work your butt off to get there in the least amount of time possible!
What is Financial Independence?
Surprisingly, I think Wikipedia did the best job defining financial independence:
Financial independence (FI) is generally used to describe the . . . → Read More: Financial Independence: It’s Not the Final Chapter