If you start investing in the 401(k) when you are 22, you can certainly become a millionaire after you retire at 65. Invest 10% of your salary, $35k, into a 401(k), and that is $3,500 annually. That is just $134 per paycheck, assuming you get paid every 2 weeks. You’ll have over $1 million by… Continue reading You Can Become a Millionaire via the 401(k)
The three popular ways to measure value of the stock market are the trailing 12 month price-to-earnings ratio (P/E ratio), the forward 12 month P/E ratio, and the price to sales ratio. The question is whether the stocks are over valued at this point. Historically, the S&P 500 P/E ratio is around 15. That was… Continue reading Is the Stock Market Overvalued?
Lower your taxes. Instead of looking at your investments first, begin by taking a look at your taxes and determine a good method to minimize them. You ideally need to move from growth type of investments to income producing investments, when planning for a flawless retirement. By simply changing your portfolio’s funds to more tax… Continue reading Taxes and Inflation – Your Biggest Enemies after Retirement
Recent news headlines have repeatedly indicated that the uncertainties in the global political and economic policies are unprecedented. The uncertainties in the global investment markets have increased; however, the global stock market volatility has declined. Many markets have reached new highs. The situation is very unusual. One of the problems is the commonly used market… Continue reading Are You Prepared in case the Current Market Loses Its Steam?
The Dow Jones Industrial Average has a record high for 12 consecutive trading days, but Warren Buffett still believes that US stocks have not yet seen a bubble. He even bought more of the Apple stock this year. Buffett in an interview with “Squawk Box” mentioned that if the interest rate is 7-8%, then the… Continue reading Buffett Shared the Best Strategy To Invest In The Stock Market
You can let Buffett and his people do the work for you. Buy Berkshire Hathaway shares directly. Buffett’s holding company has beaten the total return of the S&P 500 over the past 10 years with an annualized return of 9.1 percent, compared to 7.3 percent for the index. Berkshire stock has two share classes. The… Continue reading Take Short Cuts and Invest in Buffett
Most seniors live off a fixed income whether the income comes from the social security, pension, or 401k. That’s why it’s important to take advantage of the tax breaks available in order to save money. Medical expense deductions The medical expense deduction allows taxpayers to deduct healthcare expenses that exceed 10% of their AGI, adjusted… Continue reading Do Not Over Pay Your Income Taxes after Retirement
Choosing the investment strategy that is right for you is hard. If you are a high risk investor with a long investment horizon, you may look to include small cap and growth stocks or funds investing in your portfolio. You should be more suitable for value and income investing if you have a moderate risk… Continue reading Planning for Retirement Part 2 – Investing Strategies
Let’s take a closer look at the investment vehicles. Mutual Funds Through mutual funds, you can invest in many companies at once whether they are good old fashioned dividend paying companies, biotech, or growth oriented companies. When you invest in many companies through mutual funds, it helps you reduce the risks that come with investing… Continue reading Taking a Holistic View of Your Investment Strategies – Part II
One aspect of the investment strategies is paying off your debt. Investing does not narrowly mean one must buy mutual funds or stocks. If your credit card debt is costing you 15% of interest a year, pay off the credit card debt first. You’ll be saving 15% or more a year. That’s investing, investing for… Continue reading Taking a Holistic View of Your Investment Strategies – Part I