Smart Thinking On Investing – December 02
Smart Thinking On Investing – December 02
Pretend to Be Poor blog writer Kalie uncovers the finance topic that no one discusses. And Ashley Eneriz, from Investopedia, teaches us the money lessons we should have mastered before we hit our 30’s…
The Simplistic Art of the Robo-Advisor
- Setting up a retirement account isn’t the same as a bank account, you can’t just forget about it; you need to track what your money is doing once you put it in
- Robo-advisors are easy to set up and they open up the complex world of investing to beginners by making it much simpler to invest in the right funds
- They remove so much “friction” from the start-up process; they create a portfolio based on your risk tolerance and age for you—simples!
Do you invest with a robo-advisor? Does it work for you? Share your experience in the comments section below
Who Wants to Be a Millionnaire?
- On average a millionaire has seven streams of income; a mixture of both passive and active
- Start with active income; your career, and invest in passive ones to build up your returns for the future—remember money makes money
- These can include interest on loans and companies, dividends from investments (reinvest these every time), capital gains, royalties from products, rental income and business income
No One Is Financially Perfect
- Avoid having too many accounts and paying out too many fees, choose a single brokerage firm with low-costs
- Know what you’re laying out in transaction fees; if you don’t keep an eye on them, they’ll rack up and sting you
- Maximize your tax advantaged accounts and employee retirement accounts for the receive maximum value in employer contributions
- The right financial path to take; invest early, invest often, and diversify
The Scrooge in Us All
- A characteristic we sadly can all be prone to; an unhealthy appetite for the latest and greatest gadgets and stock value
- Allowing yourself to be controlled by greed is not acknowledging your discontent; admit to it and begin to take back control from desire
- Guard yourself against it by avoiding more consumer debt, sticking to your budget, and paying off your debt as quickly as you can
Financial Ideals to Master as a Millennial
- Many millennials mess around with the idea of a budget but few follow through—account for every dollar and stick with your spending allocation
- Don’t spend your whole paycheck; start by saving 10% of it and try and increase that until you’re saving 30 – 40% each month
- Approach your debt situation aggressively
- Maintain a good emergency fund—at least six months living expenses
- Don’t ignore your retirement; make headway on your future financial income as soon as possible
Do you want to start investing on your own, but don’t know how?
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