There is no One-Size-Fits-All answer to this conundrum. Investment is inherently risky. No matter what you invest in, there’s at least some chance that you’ll lose it all. Though, depending on the investment, that chance may be very likely or not very likely at all. At the end of the day, only you can determine how much risk you are comfortable with. A good rule of thumb is to have only as much as you can handle without losing sleep at night. If the sleep test checks out, then you may just be in the right situation. But just in case, you may want to think about the following principles.
1) Younger Investors Can Handle More Risk. Typically, that is. It works like this. Say you have a portfolio of stocks and bonds, as many people do. Stocks fluctuate in value a lot more than bonds. If you had stock only in one company, that would be risky indeed. Having investments in many stocks has a balancing effect on your portfolio. If one falls, another is rising. If you invest in an index fund of most or all big corporate stocks, you’ll get the benefit of the market’s tendency to increase in value over time. Of course, there are still some down years, but over the course of decades, the market always shows growth. That’s why young investors can keep a lot of money in stocks. If they lose a lot, they’ve got plenty of life to wait for it to rebound. Older investors tend to take on more bonds, which are very stable but don’t increase in value very much. Even as a young investor, you may want to have at least a handful of bonds, but it’s not uncommon to have less than 10% of your funds allocated to bonds, if you are young.
Getting the right home loan guidance doesn’t have to take up your whole weekend, unnecessary paperwork or even putting a pause on your favourite playlist. In fact, you can make a start on your home loan application right now, by using your smart phone and the best part is you don’t even need to make a call. Check out our four easy steps below to see how you can get started:
1. Price Advice
There are few things better for your financial health than paying off any debts that you have as quickly as possible. The fact is, the longer you have the debt and the longer interest accrues, the more you pay for that debt. Even if what you purchased might have been a “bargain”, paying for it over several years will quickly turn it into something far less. For that reason, we put together a number of tips and bits of advice for paying off your debt smarter and faster. Enjoy.
Tip 1: Prioritize
There are few places that lead consumers into deeper debt then payday lenders but, due to state and federal restrictions imposed in the last few years, revenue from brick and mortar payday lending companies has remained flat during the last four years.
Unfortunately, online payday lenders have sprung up left and right and their revenues have more than doubled in the same time period, from $1.5 billion back in 2006 to over $4 million dollars last year, in 2013. In fact, according to a study by the Milken Institute, nearly 40% of all payday loans in 2012 were initiated online.
Not surprisingly, first-time investors usually have a little bit of anxiety about when the best time is to make their first stock purchase. It’s not an unfounded fear, frankly, because if a person were to start at the wrong point in the market, which has a tendency to go up and down quite a bit, they can be left staring at big losses right from the start.
The good news is simply this; time is definitely on your side. If you are investing for the long haul, which is recommended, well-chosen investments will have compounding returns that add up quite well no matter what the market was doing when you decided to purchase your first shares.
Okay, so you’re scrimping and saving and going to all the bargain shops that you can in an effort to stick to your budget. While you deserve props for that, the fact is that some of these well-intentioned habits might actually be hurting your budget more than helping. Below are 5 habits that could secretly be sabotaging your budget. Check them out and make sure that they aren’t sabotaging yours. Enjoy.
If you purchase items simply for the fact that they’re on sale, you may be sabotaging your budget. The fact is, sales can be extremely dangerous, especially on things like clothing. Many a person has purchased clothing items that they don’t need simply because they were “on sale”. If you see something you truly need and it’s on sale, by all means pick it up but, if it’s something you don’t normally purchase or simply don’t need, avoiding that sale is your best bet.
Just a note to my readers, this article was the first by my mom, she has been reading this blog for awhile now and wanted to write an article of her own. She expects to continue writing, so please encourage and leaves comments…Thanks!
My husband and I will be retiring within the next few years and we have found we have had many questions about Social Security. Asking around and talking to friends and family they don’t know the answers when asked. So, let’s just go over some brief facts about Social Security to get you started.
If you’re a regular reader here on our blog you know that we post a lot of information about building up a nest egg for retirement. That being said, making sure that your nest egg lasts is actually sometimes a bit more difficult. The steps below will help you to make yours last a good bit longer. Enjoy.
What most investors realize when they begin trying to create what will be their income stream in retirement is that health care costs, market returns, life expectancy and inflation, among other things, are all unknown factors that can make it extremely difficult to figure out exactly how much money they can safely withdraw from any retirement accounts that they have. The fact that some people could easily be retired for 20+ years makes it even more difficult.
Here’s an great example of when using a store credit card was an excellent idea. A colleague of mine was planning for his wedding and, after visiting a number of suit rental shops, was leaving the mall and went through a Macy’s department store. It just so happened that it was one of their biggest sales days of the year and he decided to take a look at suits there.
Well as luck would have it he found the perfect suits for both himself and his groomsmen and also found out that he could save an additional 15% that day, plus get cash back, by signing up for Macy’s store credit card.
Most financial experts will tell you that a Roth IRA is one of the best retirement vehicles you can use. It does come with a number of challenges however, including limits that prevent some people from directly funding their Roth IRA account. If your income exceeds those limits the steps below will help you. Enjoy.
First, in order to open and directly fund your Roth IRA, including contributing fully to it, you need to have an annual income that’s less than $129,000 as a single person or, if you’re a married couple, hundred $91,000.