Low-risk is a relative term when it comes to investing. The classic risk-free investment is Treasury securities, but even they carry some degree of price risk. For those looking for low-risk investments, here are some to consider….
— Read on www.thestreet.com/personal-finance/low-risk-investments-with-high-returns-15170504
Technology companies, such as Google, Facebook, Amazon, and TikTok, are not only social media companies. At their core, they are primarily massive data collection companies which collect massive amounts of individuals’ public and private personal information.
When individuals share vacation photos on Facebook or search for birthday gifts on Google or use TikTok’s mobile app to share activities with a colleague, this information is collected, manipulated and assessed for the monetary benefit of the social media company.
Privacy of individuals’ information, a major concern of citizens of Western Europe and the United States, and nonexistent for citizens of Communist China and the Russian Federation, are a growing concern.
“Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner shall the tree grow. And the more faithfully you nourish and water that tree with consistent savings, the sooner may you bask in contentment beneath its shade.”
George S. Clason, Richest Man in Babylon
The real secret to compound interest is less about the amount that is saved, and more about the amount of time it is invested. One final advantage to begin saving and investing earlier rather than later is that the stock market presents a much better opportunity for long-term investors than it does for short-term investors.
Although nothing is ever guaranteed when it comes to investing, history shows that the longer you are invested, the greater your chance for favorable returns. What truly matters in investing is not timing the market but time in the market. Get money invested early so your time horizon is long enough to ride out short-term market volatility in pursuit of long-term gains and achieving long term goals.
It is recommended that you pay yourself first and that at least 10% to 15% of your income is saved into your retirement accounts.
Most Americans tend to save wants leftover after paying their monthly bills and spending on discretionary items. Instead, a better way is to spend what is left after first putting a percentage of income into savings. The easiest way to make this happen consistently is by setting up automatic contributions from each paycheck to a retirement savings account. But don’t stop there. It is also recommended that you increase your contributions each year or with each raise.
A small increase in your contributions won’t be very noticeable, but it will make a big difference in your balance over the long term.
Because of these reasons, you should start saving and investing today.
Source: Stay Bullish
The U.S. economy is strong and growing. The job growth numbers have been good over the past several months and unemployment remains at the lowest rate in five decades for all Americans, including African-Americans and Hispanics. Wages for non-supervisory workers are increasing and inflation rates continues to hover below two percent. The financial markets are at all-time high record levels. Additionally, the likelihood for an U.S. economic recession in calendar year 2020 appears more unlikely.
Despite all the positive U.S. economic news, there are multiple areas of concerns expressed my many Americans regarding the strong economy. They point to structural changes in the economy, growing inequality between the upper and lower classes, and an uneven economic recovery in the wake of the Great Recession. Essentially, the benefits and opportunities created by the strength of the U.S. economy have failed to filter down equally to every American.
Many Americans are feeling further economically marginalized and left behind by the changes in the economy and workforce. You hear frequently from financial news and social media that there are not enough skilled workers to fill the job openings that exist in corporate America. Many high paying unskilled manufacturing jobs that existed two decades ago have migrated overseas to countries like Mexico, China and Vietnam.
The wealthiest Americans, especially those owning assets and large stock portfolios, have realized the most benefits from the strong economy and seemily never ending bull market. This dichotomy of whom has benefited most from the strength in the economy is driving the widening rift between the haves and haves not within the country.
America must find away to ensure all Americans, not just the wealthy and elite, benefit from the strong economy and bullish equity financial markets. Essentially, the prosperity of the counntry must truly lift all boats and avoid leaving some stuck in the mud.
Spent a fabulous rainy November Friday driving a 420 max horsepower 911 Carrera S at the Porsche Experience Center in the ATL. The experience was tremendous navigating the Porsche 911 Carrera S through hairpin curves, kick plate skids, controlled spins and at high speeds around the 1.6 miles of connectable track.
Enjoyed driving the one-mile handling course which is designed to mimic a winding country road with challenging curves and a straight roadway that allows the driver to achieve maximum speed.
Must say that the best part of the ninety (90) minute Porsche driving experience was the wet, low-friction circle that tests a driver’s expertise to handle the vehicle during induced spinouts. A close second was the thrill experienced launching the Porsche from zero to sixty (60) mph plus in less than three (3) seconds. Handling the 911 Carrera S through a variety of dynamic and initiated spinouts, and launching was thrilling and challenged one’s skill to control the vehicle.
Was not sure what to expect or how much I would enjoy the experience of driving a high performance Porsche, especially in the rain, since I am not a “car guy”. I prefer to invest my money in appreciable assets such as stocks or real estate instead of in luxury, high performance vehicles. But, the thrill and delight derived from pushing the limits of the Porsche 911 Carrera S was an experience I shall relish.
U.S. consumer activity remained robust and employment continued to set records – hence the many critics and even a few Fed dissenters of the “mid-cycle adjustment.” Now, Treasuries are selling off with some momentum the last two months as the economy stabilizes.
It’s not that our economy is vastly improving – it’s that it’s stabilizing with the rest of the world while geopolitics are looking less dire. So rates are a little topsy-turvy, going up without real economic acceleration.
— Read on mail.tdameritradenetwork.com/H/2/v40000016e6519f5f6b372a96e965fc958/67faea12-ef19-46a7-9842-7bf7e98df4dd/HTML
Retirees preparing to file their taxes for this year should be aware of a number of common pitfalls, often-overlooked deductions, and changes that stem from the tax overhaul two years ago.
— Read on www.barrons.com/articles/retiree-taxes-pitfalls-overlooked-deductions-social-security-withholding-51572696002
Retirement can be a time of joy, but it can also be a time of challenge. Not only does your lifestyle change, but so does your source of income. Retirees who successfully live off of their retirement savings and investments share a few traits:
How much retirees need to save for retirement depends on two essential elements:
There are several variables you will need to determine when planning for retirement:
For most individuals, there are four basic retirement income sources: Social Security, employer-sponsored defined-benefit plans (pensions), defined-contribution plans (e.g., 401(k) plans) and personal savings.
The first retirement income source for most working individuals (and their spouses) is Social Security, which began during the late 1930s as a supplement to one’s savings. It has since grown to represent, for many people, a sizeable part of retirement income. Benefits come in the form of monthly payments, based on your final years’ salary and number of working years.
Employer-sponsored defined-benefit retirement plans—commonly called “pension” plans—are being offered by fewer employers now, but are still a key source of retirement income for many people. Benefits received under these plans are in the form of monthly payments, based on the employee’s years of service and final years’ salary. Monthly retirement benefits from defined-benefit plans may be paid either directly by the company, or from annuities purchased by the company.
The more common employer-sponsored retirement plan is the defined-contribution plan. Better known by their tax code designations, such as 401(k) and 403(b), these plans specify an amount the employer will contribute to employee savings. Under these plans, employees invest pretax money in various investment alternatives chosen by the employer. Employers are not required to match an employee’s contribution, although many do match part or all of what an employee puts into the plan.
Individual retirement accounts (IRA) give more flexibility on how savings are invested. These accounts allow a person to invest without incurring capital gains and dividend taxes, as long as the tax rules are not violated. A traditional IRA is funded with pretax dollars; withdrawals are taxed at ordinary income rates, however. A Roth IRA is funded with after tax dollars; withdrawals are not taxed. Roth IRA contributions can be made as long as modified adjusted gross income does not exceed certain thresholds. Starting in the year a person turns age 70½, withdrawals must be made in accordance with the required minimum distribution (RMD) rules.
There are two other often overlooked sources of retirement savings.
Source: Profitable Retirement Planning, American Association of Individual Investors (AAII), https://www.aaii.com/o/profitableretirementplanning?a=member