16 Superb Investing Strategies for Retirement

 

 

Many people ask for advice from friends, co-workers, family members, strangers and their financial planners about how to invest.  Many people panicked during the last government shutdown and volatile market fluctuations. Many were forced to spend all or a large portion of their retirement money or moved their retirement money to a savings account or CD.  

This was the wrong move to make. You must keep your money invested during the ups and downs of the stock market.

Every investor has different financial goals and objectives and should work with a financial planner to assist with meeting your goals.  Financial planners have expertise in how to survive the ups and downs of the stock market and can provide the best advice and if and when you should move your money. Here are sixteen superb investing strategies for retirement.

1. Get your finances in order - Pay down debt. Create an emergency fund 9-12 months. Get insurance. Set financial goals, set a retirement date. Plan for your estate. This will free up cash that can be used for investing. 
2. Define a strategy - Determine the goals you want to achieve. Identify whether you want to invest in small caps or big cap stocks, emerging stocks, etc. 
3. Research - Research the stock price history, executives, and annual report. Learn everything about the company before you invest.
4. Create a plan - Develop a clear plan where you are now and where you want to be financially. 
5. Identify your style - Take time to develop your personal investment philosophy.
6. Mentor - Get an investing mentor. Get advice from someone in your social circle who has an extensive financial portfolio you would like to emanate.
7. Asset Allocation - Decide on an asset allocation to help balance risk and reward by allocating a portfolio’s assets according to an individual's goals, risk tolerance and investment outlook.
8. Diversify - A well-diversified portfolio limits your exposure to risks so that your investments have time to earn real gains.
9. Companies - Invest in well-established companies that have name and brand recognition.
10. Risk tolerance - Identify your willingness to lose money.
11. Patience level - Identify your patience level will determine if you are able to wait for returns to generate income based on long-term growth.
12. Fees - Research the fees that you will be charged when investing such as commissions, management fees, cost of operating the fund, etc. 
13. Buy low, sell high – Buy when the market is experiencing turmoil. When the market bounces back, you will have achieved great gains.
14. Review - Review your portfolio each time you receive a statement. You asset allocations may have changed and you may have experienced more risk than anticipated. This can be corrected by rebalancing your portfolio.
15. Dollar Cost Averaging – Buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. This results in buying shares for a cheaper “average” price and earn a greater return than if you buy a large amount of shares at a single price.
16. Automatic Investing Plans – Online brokers allow customers to buy individual stock or money market accounts. There is no minimum investment and you can invest any amount.

9 Excellent Reasons to Invest

Investing your money is a great way to plan for your future including retirement, college education for your children of other investment opportunities such as starting a business. Investing allows your money to grow over time using compound interest. Well managed investment plans allow you to live the life you want and deserve. Investing allows your money to grow tax deferred. Investing outperforms inflation and will provide you with steady income when you retire. 

Many people ask for advice from friends, co-workers, family members, strangers and their financial planners about what they should do with their investments or retirement plan. Every investor has different financial goals and objectives and should work with a financial planner to develop a plan to assist with meeting those goals.  

Financial planners have expertise in how to survive the ups and downs of the stock market and can provide the best advice and if and when you should move your money.  Here are 9 excellent reasons to start investing your money.

Benefits of investing

1. Reduces stress, anxiety, fear, depression related to your future. 
2. Allows you to develop a solid financial plan so you can focus on other things such as spending time with family and friends and maintaining good health.
3. Helps secure your future and earn income outside of your job.
4. Generates income.
5. Prepares you for retirement.
6. Helps you manage your money.
7. The more you save the more you earn.
8. Creates generational wealth.
9. The future is not promised, you must prepare for the unexpected.

When to invest

1. As soon as you start working as an adult or earlier.  If your company does not offer a retirement plan open your own IRA. You will need at least 30 years of investing (depending on your salary) to have enough money for retirement.
2. If you plan on getting married.
3. If you plan to have children.

How to prepare for investment

1. If you want to retire by age 65 or sooner.
2. Pay down debt.
3. Create an emergency fund 9-12 months.
4. Get adequate insurance life, health, disability and long-term care insurance.
5. Consult a financial advisor to help you set financial goals, set a retirement date, decide where you want to live and the lifestyle you want to have.
6. Plan for your estate (will, trust, advanced directive).
7. Become a homeowner.

Where should you invest your money?

1. Diversify
2. Mutual funds
3. Individual stocks
4. Bonds
5. ROTH IRA
6. DRIPS (Dividend reinvestment plan)
7. Options
8. Futures

16 Valid Reasons You Need a Financial Advisor

October is Financial Planning Month. If doesn’t matter if you make $20,000 or $20,000,000 a year, everyone needs help with managing their money and meeting their financial goals.  You can use self-help resources such as books, television shows, seminars or courses but you may reach a point where you need additional help, that’s when a financial advisor comes in handy. If you do not have a financial advisor you should consider hiring one as your income increases, lifestyle changes occur such as marriage and children and assets increase such as purchasing a home, investment property or starting a business.

Financial advisors help clients reach their financial goals including retirement, paying for college education or starting a business.  Some financial advisors can also assist with creating a budget or spending plan, paying down debt, choosing investments, managing their finances, taxes, savings and wealth management.

There are 2 types of financial advisors:  fee-only and commission-based.  Fee-only advisors charge a fee for their services usually $150-$300 an hour or per session or may charge a fee based on the annual percentage of assets that are managed. Fees should be disclosed up-front. Fee-only advisors offer unbiased advice because they are not motivated or required to sell products and services to get paid.

Commission-based advisors receive a commission by fund companies or brokerages for the sale of financial products and services and receive a percentage of the total amount clients invest in specific products.  Commission-based advisers receive a percentage of the total number of transactions a client makes and may charge 0.5% - 2% of the assets they manage for each client.

A financial advisor can:  help you generate more money for you and your family, help you to be better prepared for changes in your life (death, illness, layoff, children, etc.), provide protection against mistakes and unexpected circumstances (death, illness), provide stability and peace of mind by ensuring your financial goals are met, save time, provide guidance on retirement and investment options, decrease your tax liability, determine insurance needs, minimize taxes, analyze risks, and develop a plan to manage your business finances. Here are 16 reasons you need to hire financial advisor or financial planner:

1. You want to learn how to track spending.
2. You need help to create and meet financial goals.
3. You want to plan for retirement.
4. You want to address credit issues.
5. You want to develop good spending habits.
6. You want to organize your finances.
7. Getting married or getting a divorce.
8. You experience a financial crisis.
9. You buy or sell a home or investment property.
10. If you have $300,000 or more in investments.
11. You have a lump sum of money to invest.
12. You want to retire early, start a business or do volunteer work in another country.
13. You want to setup investments accounts to fund college education or other expenses for family members. However, you should contact an estate attorney to setup trusts of similar types of accounts.
14. Death of a spouse.
15. You want to donate a large sum to charity.
16. You want to analyze your insurance needs.

19 Superb Reasons to Use Online Bill Payment

 

The average consumer pays 8 to 15 bills each month. The cost to mail a bill is $.47. If you mail 10 bills a month that costs $4.70 a month plus the cost of driving to the post office. In a year, you spend $56.40 in postage.

One way to save money on paying bills is by using online bill payment. All banks offer online bill payment usually for free. A great benefit of paying bills online is you can do so while in your pajamas or on your cell phone. Using online bill payment helps reduce paying late fees, helps pay down debt faster and reduces the burden and stress of paying bills by checks or by phone.

Most major banks and some credit unions off online bill payment. You can setup recurring or one-time payments. If you decide to use your online bill payment through your bank, you can setup an account. Enter the bill provider’s information and your account number. Then select a payment date and payment amount. Payments can be sent to a company or an individual. Here are 19 benefits of using online bill payment.

Easier

It is available 24/7 and can be accessed from anywhere in the world.

Saves time

Eliminates the manual payment process of paying with checks and making trips to the post office. Paying a bill takes less than two minutes depending on your internet speed.

Payment Services

You can pay your bills online on your bank’s website, on the biller's website or with a third-party bill payment service. Payments can be sent by your bank electronically or via a paper check.

Saves Money

Eliminates postage fees, which seem to increase every year. No fees are required for using online bill payment.

Centralize Bills

All bills are located in one secure location and helps you stay organized.

Eliminates Fees

Eliminate late fee charges, which can occur if a payment is mailed late.

Provides Security

Payments are secure and reduce chances of lost payments. Using an encrypted website and a secure Wi-Fi provides protection against identity theft.

View Balance

You can view account balances and transactions in real-time.

Additional Services

You cannot perform other transactions such as viewing account activity and online statements.

Green

Helps the environment by lowering the usage of paper, envelopes and stamps.

Organizes Bills

Reduces the amount of paper associated with bills and statements.

Track Spending

Provides an easy way to create a budget and track your spending.

Create Alerts

Allows you to setup reminders when bills are due or when a check or payment has not been processed.

Conduct Searches

Provides an easy way to search payment history and provides the ability to download payment history.

Payment Methods

You can pay your bills by using electronic funds transfer from your bank account or pay with a credit card or debit card.

Declutter

It helps you declutter. It helps you easily organize your bills and keep track of due dates.

Receive Statements

You can receive electronic statements, bills and disclosures.

Faster

Payments are usually processed within three business days and it is much faster than sending payments via postal mail.

Provides Peace of Mind

It gives you peace of mind knowing that your bills will be paid and reduces the chances of forgetting to pay a bill.