Pros and Cons of Downsizing After Retirement With Baby Boomers already rolling into retirement and Gen X looking forward to shrugging off the stress of the 40-hour work week, downsizing could be a
3 Investment Principles To Live By
3 Investing Principles to Live By!
They say if you're not an insider then you don't really know what's going on in the market. But outsiders can still make wildly accurate predictions. On this we contemplate on how to make investments that matter and make a difference in the long haul. Here are some basic principles you can adapt to:
The Federal Reserve Bank of St. Louis reports that the average U.S. citizen only saves less than 6% of their monthly income! Surprisingly this is the reason why most people work until their 66 years old, but one can shave 10 years off by simply raising their monthly savings rate to 10%. If you're real ambitious and wish you to retire in your early 50s you can by simply saving 20% of you're monthly income.
Blame the cost of living in the past 40 years , U.S. citizens went from saving a whopping 17% of their monthly income in 1975 (highest savings rate calculated in the past 40 years) to todays abysmal 5.4%.
GETTING MONEY YOUR NOT AWARE OF
A 401(k) will change you're life. Company match that exist within an employers benefits package will allow you to contribute 6% of you're earnings which will be matched by the employer. Company matches vary among everyone but typically if you contribute 6% you're company will match it by 50% of what you put in ,so in reality they match 3%. Example:
If I make $50,000 and then I contribute 6% of my salary to my 401(k) which is $3,000 a year , my company will match $1,500 for a total of $4,500 in yearly contributions to you're savings.
YOU DON’T OWN STOCK??
Only 55% of adults in the U.S. own any kind of stock. That number is much lower for younger investors, in short , go out and put your stake on a company. Stock Market has always presented itself with some risk but history has proven that in the long-term the stock market rises.
Keep in mind that whatever money you use has to be money you don't need at the moment. You actually have to be willing to lose half of it on a given year. Stick to a plan that you feel comfortable with and emotions will rise but you must deal with them. On a side note you can always take up meditation to deal with the nerves and stresses that come with investing.
Overall, relax and enjoy the fruits of your labor! Don’t go crazy saving to the point where you can't enjoy your earnings.
Brian is a real estate sales professional with a passion for providing excellent customer service, speedy communication and upholding the highest standard of professionalism. Drawing upon years of exp....
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