Style Switcher

Predefined Colors

Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

As found on YouTube

Retirement Planning Home

Read More

How to Have the Perfect Portfolio in Investment – John Bogle’s view

But now this brings us to the main point of 
our discussion with you which is to get your   advice for our viewers about what you consider 
to be the perfect portfolio now we know there's   no such thing as perfect but i suspect that TIFs 
will play some role in this what would you say to   the typical investor now today looking forward how 
should we be managing our wealth well let me um i   tried to cover this you'd be surprised at some of 
the what i've done in the asset allocation chapter   of my book a little bit because i've come to 
conclusion there's really not a very good answer   and i've concluded that regular rebalancing is not 
terrible but not necessary i've come to conclude   that it's 60%, 40% portfolio is probably the best 
option rather than going from 80 20 to 20 80 in a   target retirement plan uh maybe right and i may 
be wrong on that and i find it something very   individual uh and and you know and clearly i mean 
everybody knows this intuitively at the beginning   there are no easy answers to this so i'll come 
to exactly what i'm doing uh but what i was what   i did i got a letter from clearly a young man 
who was really worried about how he should be   investing and what his allocation should be and he 
said you know the dangerous risky world out there   and he didn't mention it but of course he's right 
you have potential nuclear war global warming much   more than just potential and racial division in 
the country uh right now uh threats to world trade   and division of wealth all over the world but 
most often very heavily in the us between the   haves and the have-nots all those things 
are worth worrying about but i said to him   you don't know and i don't know what's going to 
happen to any of them the market doesn't know   nobody knows so you just have to put them out of 
your mind and forget it what you want to think   about is how much risk you can afford and that's 
very much a personal thing and it has a little bit   to do with whether you're investing regularly 
and things like that and then i said to him if   it's helpful to you i'll tell you what i'm doing 
now i'm 88 years old and have an unusual kind of   planning my estate and i said i'm 50 bonds and 50 
stocks i don't happen to rebalance around that it   just seems to come out that way particularly in 
recent years and uh it's been higher than that   and been lower than that but right 
now i'm very comfortable at 50 50.   although i spend half my time worrying that i have 
too much in stocks and the other half of my time   worrying that i have too little in stock and i 
think that's the way most investors feel they   don't know what the right number is and when the 
market's going up they say god why don't i have   more stocks when it's going down so your own worst 
enemy in all this yes but having some stability   without automatically rebalancing i don't think 
you need to do that and and it's very clear   you know and anybody understanding economist 
certainly understands this that the more the   less you rebalance the more you're going to 
have because you're always selling the better   performing asset and you don't know whether it 
will do in the long run but i also look at it   as as very importantly uh and this is this is kind 
of an interesting thing i think the most important   thing you need to know about the performance 
of the stock market in the next 30 40 50 years   is what is the GDP of the united states going to 
do corporate profits are correlated at 96 percent   s p dividends are correlated at 96 percent with 
with the gdp of the united states the GDP doesn't   grow quite as fast but not a big difference 
6.7 compared to 7.5 or something like that   and then they'd be nominal and uh i think so 
what interests me is in peter lynch's book   something about wall street uh one up on 
wall street or something he says there's no   number that could interest him less than the gdp 
number is it going up or down and what that is is a statement that the short term is more 
important than the long term and i don't   believe this the short term is more important than 
long term and then you even get in freakonomics   those wise guys they did a nice interview with 
me i'm heard all of it yet but i will someday   um say pay no attention to the GDP well it's 
everything right but it's not everything today   and tomorrow right you know the gdp probably 
rose today about two three hundred and sixty   fifths of one percent or something whatever it 
is uh and uh we don't pay any attention to it   but it all comes down to for your you know the 
best portfolio is are you an investor or are you   a speculator and if you're going to keep changing 
things you were speculating because we can't know   if you're going to put commodities in there the 
ultimate speculation it has nothing going for it   no internal rate of return no dividend yield no 
earnings growth no interest coupon nothing except   the hope largely vain probably that you can sell 
to somebody else for more than you paid for it   how that could be even considered goals 
let's say an investment uh i do not know so   it's i'd like to take the mystery out of it and 
say that the perfect portfolio first i think for   a huge proportion over 90 percent certainly of 
the investors should be limited to marketable   securities they don't need the liquidity today but 
and we may have you know too much marketability   and that is too much sensitivity to prices as they 
change day by day but you want to get out of the   idea that you always have to do something and uh 
i have said in my books and you know something   happens and the federal reserve does something 
and the traders all at the beginning of the day i   think it's going to cause the market to go down so 
they sell and everybody else says it has nothing   to do with anything for you and when you hear news 
and your broker calls up and says do something   just tell them my rule is don't 
do something just stand there   and it's it's a lot of the rules that apply 
to the investment are not rules that apply to   ordinary life right and uh so don't do something 
just stand there so get a rough idea of what you   want to allocate your money to now i i do i'm 
really entirely indexed at my 50 50.

Uh although   oh my and i can't give you the proportions 
because i don't remember them but   my bonds that are in my retirement plan are 
bond index funds and the bonds that are in my   my uh personal account are municipal vanguard 
missile bond short intermediate and so i'm   reasonably comfortable with that so i think 
i'm too conservative for the average investor   so i'd say the perfect portfolio and it should 
be well let me just mention one other issue and   try a little bit differently uh blair academy i 
have a scholarship fund that i'm allowed to manage   and i don't i don't want to spend any time on 
and i don't so here is exactly what i've done   on the assumption that nobody will touch it for 
a long time and when i'm gone i mean maybe they   will maybe they won't but what i did this is 
probably ten years ago um we say put half of   it in Wellington Fund and have it balanced index 
fund the idea was not all on balance index fund   because there could be things that happen that a 
manager needs to adjust to neither of them have   an international component and that's fine with 
me that's i believe that's the better strategy so   that's and they would be together 90 of the fund 
and then against two contingencies um just in case   i put five percent in the emerging market index 
and i hope you're sitting down five percent in   gold really yeah in the event just a five percent 
hedge against some kind of catastrophe now   i wouldn't call that the perfect portfolio but 
i i mentioned only because that's one there's   distinctive meaning you cannot touch it and uh at 
least theoretically can't touch it it's designed   to be held through all extremes and so that's 
going to give you with the two balanced funds   uh roughly 62 percent in equities that's going to 
be with wellington fund more corporate bonds than   the index fund has i think the index is something 
that we should be very very careful about because   it has the one of a better expression too damn 
much in governments right i don't think any   individual would have a a bond account 70 in 
governments and 30 corps right maybe it should   be the reverse i think that makes more sense can 
i prove that no i'm sorry i can't so it's looking   at the long term looking at the numbers looking 
at cost above all there's no there's no ideal   portfolio perfect portfolio that ignores cost 
now you know i've seen these articles saying   well for example commodities no internal rate 
of return silly including gold except that's the   if nobody's gonna nobody's looking and we 
have something explosive that will help and   it probably shouldn't hurt you too much this 
portfolio actually had done rather well in the   last couple of years and it's fine in the long 
run and uh so you know and actually it may be   doing better than my own but i don't but i look at 
my performance because i'm so conservative right   uh i look at i look at the funds yeah but it's 
almost all indexed and i do have wellington fund   from those days with Mr Morgan and i wouldn't give 
that up as a sentimental matter but but i should

As found on YouTube

401K to Gold IRA Rollover

Read More

10 Principles of Building Wealth

Most of us don’t think about money other than 
what we’re spending on and selling. But did you   know there’s more to money than just that? 
Unfortunately, so many of us have not been   told about the secrets of money. There’s 
a reason the 1% are at the level they are:   they know the secrets and they follow the 
rules. If you want to be a part of their   clan, here are some wealth building 
principles that you can follow too.
  1. Invest in appreciating assets

I know you’re wondering what appreciating   assets are. Well, they’re assets that increase in 
value with time. This includes the stock market,   bonds, and real estate. While most may be stacking 
up on liabilities, people who understand money are   purchasing appreciating assets.

If you have 
a fully functioning phone but decide to buy   the latest iPhone because, you know, why not? 
This could be seen as a liability. Similarly,   if you are constantly loaning luxury cars, 
bags or clothes, you are also burdening   yourself with liabilities. If you would like 
to build wealth, you need to know that your   accumulated wealth is dependent upon what 
you do with your money. The idea is simple,   if you buy an asset at a certain price, over time, 
it appreciates in value and before you know it,   you’ll have something worth more than what you 
paid for. Since appreciating assets work through   the power of compound interest, they don’t just 
build linearly but instead build exponentially.   This means that if you invest $1,000 with a 
10% interest, the next year you’ll be starting   at a base point of $1,100 and earning the 10% 
interest on that! As exciting as that sounds,   investing your money always comes with the risk of 
losing it. However, it’s better to risk it and get   a possible rise in value rather than purchasing 
liabilities with a sure decrease in value.

  2.

Avoid conspicuous consumption

As much as we may get the urge to   fulfill our desires, nobody ever spent their way 
to financial freedom. Every day we’re faced with   the choice of deciding whether to give in to the 
consumption temptation today or be patient and   enjoy wealth tomorrow. Although tomorrow is never 
guaranteed, wouldn’t it be better to take the risk   of preparing for it rather than it finding you 
off guard? Let’s say you saw an advert about a   vacation deal or a discounted membership at the 
gold club, all these sound really great but may   result in a dent in your pockets. Like Frank 
Herbert said, “Seek freedom and become captive   of your desires, seek discipline, and find 
your liberty.” The choice is yours to make.   Consumerism causes your limited resources to be 
directed toward lifestyle and away from building   wealth.

If keen enough, you’ll notice that wealth 
builders live modestly by spending less than they   can afford (in money, time, and energy). They do 
this to invest the difference for greater value   in the future. The reality of wealth is that it’s 
a form of delayed gratification. So if a flashy   lifestyle is your aim, then consumption becomes 
a priority which makes wealth eternally elusive!
  3. Apply leverage to build wealth
When you have leverage, you have the tools   to build wealth.

You won't get wealthy by trading 
time for money, and you can't do it all yourself.   You can’t work like a donkey and expect to land 
on wealth. Leverage means you work smarter,   not harder. The beauty of this is that it 
comes in various forms, have a look at these:  a) Financial Leverage: This means that you can 
choose to invest and use other people’s money   without having to risk money from your pocket.
b) Time Leverage: Involve other people instead   of exhausting the 24hrs you get in a day.
c) Technology Leverage: Using other people’s   equipment to increase output.
d) Marketing Leverage: When you   involve other channels, the reach is more 
comprehensive than a one-on-one approach.  e) Network Leverage: Using other 
people’s connections and approaches   to expand beyond your own.
f) Knowledge Leverage:   Utilize other people's talents, expertise, 
and experience that you may not possess.
  As you can see, leverage allows you to build 
more wealth than you could ever achieve alone   by utilizing resources that extend beyond your 
own! If you aren't using leverage, then you're   working harder than you should only to end up 
with less than you deserve.

And if being wealthy   is your goal, using leverage is your best bet!

4. Detach yourself from things you don’t need
  Remember we talked about liabilities earlier 
on? Well, they’re mostly what you need to   detach yourself from. These are material things 
that may offer you temporary joy but, in return,   mess with your financial prosperity. I mean, 
there’s no need of paying hefty car insurance   on a luxurious car when you’re struggling to make 
ends meet. Letting go of certain liabilities will   save you a lot in the long run. This doesn’t 
mean you live like a miser. No. Instead,   be frugal with your expenditure.

Understand what 
makes you happy and enjoy it in moderation. It is   a matter of reevaluating priorities. For 
example, instead of paying for cable TV,   opt-in for a streaming service instead that 
costs way less. Liabilities are the reason   why you work so hard but don’t feel any richer 
with it. They give short-term satisfaction but   keep you from reaching your long-term goals. The 
best way to avoid getting things you do not need   is to create a budget that works for you. A 
great budget helps keep your liabilities in   check and save you from the terror that is debt.

And if you’re interested, you can download my free   budgeting guide using the 
link in the descriptions.
  5. Identifying Common Money Pitfalls
All of us might, at some point, have fallen into   the hands of consumerism.

We are often surrounded 
by businesses telling us why it would be great   to give them money in exchange for something. 
However, as you give them this money, you are   giving it away with no monetary benefit, all the 
while, they are garnering profits from your cash.   Society is designed for you to spend as much as 
possible yet provide a pinhole of opportunities   for you to gain wealth. Don’t believe it? Why 
is it that in school, we’re always taught how   to work hard and secure a good job instead of 
how to actually generate wealth and make money?   We’re not taught how money works. One of the 
major misconceptions that hold people back from   achieving their financial potential is the idea 
they need to trade their time for money. Why? The   system requires a majority of us to remain in this 
money slavery trade. Although landing a good job   may sound like a good fix, the problem is that an 
increased salary does you no good if you increase   your expenses at the same rate! Also, many find 
themselves blinded by student loans, credit cards,   and car loans that are all tied to interest rates. 
If you’re not careful, large balances can cripple   your finances for decades.

Try to understand 
how interest works before committing to any   form of monetary aid or cushioning.

6. Know where your money is going
  Every penny matters and if you don’t believe 
it, try working on a no-budget and see how bad   your debt situation will be. Applying this basic 
principle requires you to sit down and review your   spending habits. Something small such as looking 
at your bills instead of stashing or throwing   them away will help you understand every item 
on your bill. Any form of fun or recreational   spending should come after you’ve cleared your 
bills and funded your retirement and investment   accounts. You might be shocked at how much 
you’re throwing away by giving into guilty   pleasures.

Understanding every single cost will 
also enable you to understand how to best manage   your money. If things are bad, you might come to 
find that you cannot afford to enjoy a latte every   morning or daily lunch takeouts. You might also 
come across some monthly subscriptions that you   may have forgotten. At this point of awareness, 
you’ll be able to understand the dynamics at play,   telling you how much everything costs 
and if you actually need them or not.
  7. Automate, automate, automate!

Sometimes it’s just simply hard to keep   up with the numbers and so, a hands-off approach 
is necessary, especially when it comes to money.   A good example is how your employer automatically 
makes your retirement contributions.

You simply   don’t have to worry about missing out on a payment 
once it’s set up. So imagine automatically paying   for those credit card bills or sending money 
into savings from your checking account,   all thanks to automation. Not everyone has 
the discipline to keep tabs on everything,   especially when it comes to paying bills. 
Automation saves us the pain of being charged   late fees or unwanted interests. You wouldn't 
build a business without a proper business plan,   so why should you compromise on building your 
wealth? Design your wealth plan based on proven   business principles that lead to success. These 
principles include accurate record-keeping and   accountability, just to mention a few.

8.

Be courageous  It’s human nature to be cautious when venturing 
independently simply because we are social beings.   However, wealth doesn’t come by following the 
crowd. It requires you to be an independent   thinker and take the risk others chickened out 
from. To put it in layman’s language, wealth   will come from doing what others won’t, so you can 
have what others never will. What you’ll need is   courage. It takes courage to be a self-starter 
and be self-responsible. With courage, you can   walk new paths and develop new skills. If you 
wish to stand out from the crowd, you need to be   courageous enough to put in the extra effort when 
others don't.

Make financial freedom your number   one goal, and you will find that every other 
voice trying to discourage you is muted. Remember,   it takes courage to build wealth. It has little to 
do with money and more with wanting to achieve a   goal, so much that you make it your top priority.

9. Actively boost your income
  Don’t be comfortable with a basic salary. Even 
the average millionaire has more than one stream   of income. If you want to begin building wealth 
in your life and for future generations, then it   is time to place a higher value on wealth creation 
in your life and get organized with your money. I   mean, why would you be given more money to manage 
if you can’t manage what you’ve got? If we were   to look into your wallet or purse, would you say 
the bills in there are well organized? If not,   then you need to first plan and work with what you 
have as you you’re your horizons to more ventures.   Look into avenues that can generate some 
passive income since a hands-on approach   could lead to burnout.

You could also learn new 
skills and work on building wealth around that   in your spare time.

10. Be disciplined
  I can’t stress this enough. Wealth is the 
cumulative result of many little things   added together and compounded over a lifetime. 
Your daily habits will either make you or break   you if you want to be successful. Most of us 
are victims of the number one success killer:   procrastination. You must begin the right 
habits today without delay, and this   requires discipline. With discipline, you overcome 
procrastination by starting today and persisting   tomorrow. The harsh truth is that there’s 
no substitute for action. You either do it,   or you don’t. What you’ll be left with are simply 
excuses.

Don’t let anyone fool you, wealth happens   because you do what it takes to make it happen.

Well folks, thank you so much for watching and   subscribing if you haven’t. With that said, 
have a great day, and see you in the next one..

As found on YouTube

Retire Wealthy Home

Read More

RETIREMENT PLANNING TIPS FOR AGE 59+

Are you planning for retirement and  you're just not sure of the next step.   By the end of this video,  you will have received seven   crucial tips to help you plan for  a successful, secure retirement. To learn more about securing your retirement  and all the different elements you need to know,   subscribe to our channel and hit the bell so  you'll be notified of every episode posted on   Mondays. We have helped hundreds of our clients  with these exact seven tips on planning for   their retirement, and they tell us they've never  been more confident about their retirement plan.   Now it's your turn. Let's dive in. Tip number one, understand your spending. This  is really important. Now, what you do not want   to do here is to think about what your salary is  currently, while you're working.

You want to think   about what is your bring home pay after you've put  money in your 401(k), after you've been able to   pay health insurance, or whatever that might be,  that comes out of your paycheck. Think what comes   home on a monthly basis. Now, do you save any of  that money that goes into your savings account   at the bank? Take that out. What we really want  to know is how much do you actually spend every   month? By the way, if you have a mortgage or some  payment that's going to go away by the time you   retire, subtract that.

That will let you know what  your spending will be when you're in retirement. Tip number two, break income needs into three  different areas. You have your essential needs,   your wants, and then your giveaway money. It  may seem simple, but it's really important   to understand what those actually are. Your  essential needs are the basics, paying the bills,   keeping the lights on, staying  fed, staying relatively happy.   Your wants are going to be things that you want  to do. I know we work hard to get to retirement,   we don't want to give up our wants so we  want to plan for those as well. Things like   having that membership to a golf club or a  health club, being able to travel in retirement,   so being able to take those vacations  that you've been looking forward to. Being able to spoil your grandkids or family  members. These are all wants that we want to   have planned into the budget for retirement. And  then the last is giveaway money. So whether you   want to be gifting throughout retirement or  whether you want to be donating to charity,   or whether you just want to have a plan in place  for what you're going to leave behind, that   really comes into the giveaway money.

So three  major topics, when it comes to your expenses,   your essential income needs, your  wants, and then your giveaway money. Tip number three, list all of your guaranteed  income that will be there after you retire.   Now, it's really important now that you  understand it needs to be guaranteed. So   what are we talking about? Well, that's  going to be things like social security,   a pension, if you have one, or  if you've secured an annuity.   It's really important that they be guaranteed  because this part of your income plan is what's   going to help take care of those essential needs  in retirement. You do not want to count things   like rent or dividends. While they're nice and  they might be secure, they're not guaranteed.

Tip number four, don't rely on the 4% rule. You  may be asking yourself, what is the 4% rule?   Well, very simply, it's basically saying you  can take out 4% of your assets. So for example,   let's say by the time you get to retirement,  you've accumulated a million dollars. 4% of that   is $40,000. The rule, and this is a rule of thumb  by the way, the rule says that you could live off   of $40,000 a year for the rest of your life and be  okay.

Now, we see a couple of flaws in this rule. What if you're invested in  the market and your million   falls because of market volatility. So go to a  2008 scenario where the average investor loss,   anywhere from 30 to 50%. What if you  lost 50%? Now your million is 500,000.   Are you still going to be able to withdraw 40,000  a year to keep up with your living expenses?   Probably not. So that is something that's  very important that we realize that we   cannot rely on the 4% rule and we need a plan  that is structured for our specific situation. Comment below and let us know, what is your  biggest retirement planning question? Tip   number five, make a list of all of the different  types of accounts you have. Now, why are we saying   types of accounts? What does that even  mean? Well, you're going to want to list,   do you have a 401(k), 403(b), a traditional IRA,  a Roth IRA, or a brokerage account or a savings   account in the bank? You want to list all of  those account types and the reason why is because   they get taxed differently.

And so when you're  building out your retirement income plan, taxes   are extremely important. So make sure you make  a list of all the different types of accounts. Tip number six, consider how you feel about  investing during retirement. Let's talk about   this, how would you feel if you lost 10% of  your entire retirement nest egg? Well, when I   say 10% and you may say, "Well, that doesn't feel  like much." But let's put it to a dollar amount.   Let's say you have a million dollars saved up and  you lose 10% of that.

Well, that's a $100,000.   That may feel a bit more than just saying 10%,  right? So let's think about that. When you're   working and you're putting money into these  retirement plans, like a 401(k), typically you   started young and you set up an allocation that's  probably pretty aggressive, and you just set it   and forget it. You're putting money in and it's  making money, you don't really think about it.

But then you get down the line closer to  retirement, and you're still invested that way   when you should be considering your risk exposure  more and more, as you get closer to retirement.   So that's something that we have to think  about as we are transitioning into this phase.   Now, what we talk about is, you got to know  your risk tolerance and you got to understand   how you're currently invested. So many times when  we talk to people, they come in the door and they   don't even realize how much risk they have  on their overall portfolio. So that's why we   talk about always looking at alternatives that  are going to fit your investment personality. Tip number seven, don't overly worry about the  question, do I have enough to retire? Well,   why did we say that? Well, we have clients that  have a few 100,000 and we have clients that have   a few million dollars. And sometimes clients  that have a few million dollars do not have   as good of a plan as the person who has a few  100,000.

Why is that? Well, if you're spending   so much money that you're draining your accounts  too rapidly, you're at a threat to run out of   money, no matter how much you have. So what's  the bigger issue? Our spending plan. We need to   really understand how we're spending money and how  that's going to play out throughout retirement. So, as you're thinking about your retirement,  focus on your spending plan, more than being   worried about, do I have enough to retire? Well,  that's our seven tips to help you get started   down the path to secure your retirement, but what  else is needed? Well, there's a lot of different   moving parts when it comes to planning for,  and living through retirement. We have created   a mini video series called Four Steps to Secure  Your Retirement. These videos walk you through   step-by-step so that you will know exactly what  you need to do to secure your retirement. We also   have a podcast called Secure Your Retirement. You  can subscribe to our podcast with the link below.

For more detailed retirement tips, watch these  videos, create your retirement income plan,   investing during retirement, buy and hold or  active management. If you like this video,   hit the like button and be sure to  subscribe and share it with your friends.
.

As found on YouTube

Retirement Planning Home

Read More

Suze Orman Gets You Ready For Retirement | Money

I am the one and only Susie Orman, and my goal is to make you as independent from financial advisors as possible, because you are never going to be powerful in life until you are powerful over your own money. And my job is to make sure you can achieve just that. So rather than asking more from your money that it can't give you, you have to ask less of your spending habits from yourself which means you have got to get rid of all credit card debt. All debt. Total debt of car loans, mortgage debt, all debt that you have has to go. So one thing that you have to look at is if you have a debt, that is your sign that you can't afford to retire. Maybe you retire from the job that you currently have, but then you have to get some side hustles or something. So my best advice to you is start living below your means but within your needs.

How do you do that? From this day forward, every time you go to make a purchase, ask yourself a question, 'Is this a want or is this a need?'. If it's a want, please don't purchase it. If it's a need, you have to buy it. It's just that simple. You know, a lot of you, when you're approaching retirement, you look at your portfolio and usually your portfolio is this: you have a 401 9k), 403 (b), a Thrift savings plan if you work for the government or whatever, it may be, the military.

And now you've retired and now normally you would then do an IRA rollover with that money. But now you're 'Oh my God, what should I do? I never invest in money before, really. I've just put money in every single month into these mutual funds. And now I don't know what to do.'. If you are going to be withdrawing money from your retirement account to pay for your everyday expenses, you have to know that you have — ready for this, everybody — at least three years of expenses in cash, earning you a high interest rate or whatever the highest interest rate is that you can get.

The rest, at this point in time, should really be diversified into high-yield dividend-paying either stocks or exchange-traded funds. If you need really short term money and you want to get a higher interest rate for very short term money, right, I don't have a problem with bills. And, you know, I myself will put a serious sum of money protected in bills because if you're investing more than $250,000, then you really have to go to a variety of banks in order to get FDIC insurance — or even credit unions. So if you have a large sum of money of $1 – $3 million that you just want liquid, then I use Treasury bills for that. I don't have a problem with that at all. And they keep rolling over but I know that they're guaranteed by the taxing authority of the United States government. If we're talking now, though, about amounts that are $250,000 or below, I think that you're far better off, right here and right now, putting the money in a high-yielding savings account.

So for smaller amounts of money, savings account. For $250,000 or above that you want liquidity and the highest interest rate, I don't have a problem with Treasury bills. You don't have the documents in place today to protect your tomorrows. You don't have a will. You don't have a living revocable trust. You don't have an advance directive and durable power of attorney for health care. And you don't have a power of attorney for finances.

You need those things not just to make sure that your assets pass freely to your beneficiaries. You need those things for you. So here you are now and your spouse has died. Who, as you get older, who's going to write your checks for you? Who's going to pay your bills for you? If you get sick, you have an incapacity, who's going to do that? So it's very important that you get the documents that are correct. Long-term care insurance, if you can afford it, will absolutely protect your little nest egg if one of you ends up in a nursing home.

One out of three of you will spend some time in a nursing home after the age of 65. So look around and if you decide to buy long-term care insurance, the perfect age to buy it is really in your 50s. But here's the key. You better know that you can afford a long-term care insurance premium because they're not cheap. From the age of when you buy it all the way until at least 84 because it makes no sense for you to purchase it. Pay for it in your 50s, in your 60s. Now here you are in your mid 70s, you can't afford it anymore and then you drop it.

You're better off just not buying it at all. Let me just put it to you bluntly. You are to stay as far away from a reverse mortgage as you possibly can. There is not one situation out there where you should be getting a reverse mortgage. A reverse mortgage is based on the interest rates that are in effect right here and now. It's based on your age. And it just makes no sense. If you own a home and you can't afford to stay in that home — with real estate prices as high as they are — you could just sell your house right now and either seriously downsize, or there is nothing wrong with renting..

As found on YouTube

Retirement Planning Home

Read More

Why You Shouldn’t Buy Physical Gold And Silver

– And what I found out was
that the gold and metal shop that I bought this bar from,
they knew what this was. They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me. Hey, welcome back, it's Nolan Matthias. And today I'm going to tell
you about the stupidest and probably the coolest
investment I ever made. But before we get into
it, do me that favor, hit that subscribe button,
hit that notification button and please hit that like button so more people like you can see this video.

Okay, so let's get into it. What is the stupidest
investment that I've ever made? And quite frankly, also the
coolest investment I ever made. Well, it's this. It's buying physical gold and silver. This is honestly one
of the coolest things, being able to sit here and hold basically in this pile alone,
$5,000 worth of silver, and having a little bit of
gold kicking around as well. This is really cool. And this is an investment that
started for me back in 2014 as silver prices were starting
to come down as the fear from the financial crisis
was coming out of the market and as there was starting to become more and more deals on buying
physical silver and gold. And this was nothing that I ever expected that I would invest in myself,
but it came about as a result of an investment newsletter
that I was subscribed to that was all based around value investing.

And value investing is the type of investing that Warren Buffet does. So finding companies that are worth a lot that are undervalued
and investing in those. And that investment strategy
is where the similarities to Warren Buffet ended
because they also got into the piece about
having precious metals as a hedge against inflation
and currency devaluation and also holding it physically rather than in certificates or in ETFs, so that if anything ever
happened in a country that you lived in and
you wanted to bug out to a different country,
much like the Jewish people had to do in Nazi Germany
during the World War II, well, physical gold and silver was
the best means of doing that. Now physical gold may
have been a good means of being able to transport
money over borders, which by the way, I'm not recommending, but physical silver certainly isn't.

You know, this is about $5,000 worth of physical silver and
it is heavy as hell. I think there's about 160 ounces here. So about 10 pounds. I wouldn't want to be
carrying this on an airplane to go to Europe or some
other country right now. But it was interesting
because that value investing newsletter got me hooked on what's called stacking in the gold and silver world. And stacking is exactly
what it sounds like.

It's taking physical gold and silver and collecting as much as you can of it over a certain amount of years, and basically creating a
hedge against inflation and currency devaluation as a
result of having physical metal. And this is something
that is just absolutely unnecessary as far as I'm concerned. It's something that I did for a while. It was fun, but there are far better ways for me to invest in silver and gold.

And that is by using my BMO Investorline or my Questrade account in
order to purchase mining companies, or if I really, really want to, certificates in physical gold and silver. But you know, it was interesting because this investment was
definitely an investment I learned a lot about because one, you learn how the system works. Obviously, people who are
buying gold are paying less for it than the people
who are selling gold because typically you
have to sell to dealers and they're obviously
getting a better deal from you than you're getting from them.

The other thing I realized
was that there's a lot to know about buying physical gold and silver, and it's really easy to get screwed. And I'll use this bar as
an example because this is the very first bar of
silver that I ever bought. It's a 10 ounce NTR metals bar. I bought it from the exact same company that I bought this bar from, which is a sunshine 10 ounce silver bar. I paid about $2 difference between this bar and this bar. This one I think I paid about $245 for, this one about $247 for,
and again, bought them from the exact same gold and silver shop. And I paid pretty much the same price. And what was interesting
was a few years later when I went to sell this
bar, the NTR bar, back to that same golden silver
shop, they basically told me that it was worth 15% less than this one.

So in today's terms, this
bar is worth about $330. This one is worth $280. So there's about a 15% or a $50 difference between these two bars even though they're supposed to be
exactly the same thing. And what I found out was
that the gold and metal shop that I bought this bar from
they knew what this was. They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me.

And they had these two bars
sitting beside each other, and instead of picking up this
one, they picked up this one, handed it to me and
charged me significantly more than what it was worth. And what I realized was
that when you're dealing in gold and silver, the
margins are so freaking thin that the companies that
do business in this realm are basically incentivized
to screw you if they can. And I've heard lots of stories now of people buying fake
gold and silver thinking that what they were getting was real and ultimately getting stuff
that absolutely was not. So this is definitely a situation
where it's buyer beware.

Now as an alternative, I
could have bought the exact same amount of silver
that I own right here. I could have bought it in
my BMO Investorline account in a certificate, or I
could have been an ETF and I could have been a 100% certain that the silver I was buying
was real because an expert on the other side was
taking care of making sure that it was real and that
I wasn't gonna lose 15% of my investment just
because I was an idiot. The other thing that I
realized about this product was I have to physically
store this in a bank safety deposit box, or
I have to take the risk of storing it at home,
having extra insurance and risking having a fire
or it getting stolen. And that all sucks. And that all adds to the cost
of owning this investment.

And at the end of the day,
there was a whole bunch of reasons why they suggested
physical silver or gold. First was that it was cool. The second was that if you
ever needed to leave a country and go to a different country
with it, you could basically hide it and smuggle it
into another country. Again, I don't endorse that,
but that was a big reason. And in 2020, that reason is nowhere close to as valid as it was in
2014 because in today's day and age, if I wanted to
go to a different country and take over $10,000 with
me, which is the amount that you legally have to declare, by the way, I don't suggest doing that, but let's say it was 1945
Nazi, Germany, and I needed to get out of the country
with a bunch of money, well, I'm not doing it with a
bunch of gold coins anymore.

I'm probably taking a USB
drive that has Bitcoin or some other cryptocurrency on it. So, you know, all the reasons
for holding this stuff basically don't make any sense. And the only reason that
somebody really becomes a stacker in today's day and age, in my opinion, is if they are conspiracy
theorists, if they think that this is better than
cash or better than holding an investment in a online
investment portfolio. And therefore, you know, they think that the world one day will come to an end and this is what's going
to be able to save them. And you know what? I don't think that this is
what's going to save somebody from basically not having any money or having any sort of
ability to buy things if the economy goes to, you
know, hell in a hand basket.

So, you know, this was a fun investment for basically seven years. It was an interesting
investment for seven years. It's one that I definitely
wouldn't make again. All of this stuff, all this
gold and silver is going to be gone by the time
that you watch this video except for this bar, this NTR bar. I might keep this just as
a reminder to myself of why you shouldn't invest in things
that you don't understand. And, you know, for the most part, my time with this was nice. It's cool. It's nice to show to people. It was nice to cut out single
bars and give them to families when they have their
first child and just say, hey, here you go, this is
a little present from me. But this stuff, it's all got to go. Now, in comparison to this you'll also see that there's another
pile of stuff over here. This is all things that my grandparents and my parents collected.

This all has sentimental value. This isn't going anywhere. That's going straight back
in the safety deposit box because this sort of thing is really cool. And where I would spend a little bit of money going forward in coins and precious metals is in
things that got discontinued. So things like old Canadian
money, $20 bills, $10 bills, things like pennies, things like nickels when they eventually stop making those. I think they're all cool investments. And it's cool to have things
that have sentimental value. Things like this. This is four three pence coins
that were given to my mum, when no, sorry, they were given to my grandmother when my mum was born. One of these goes back to 1916. There's a whole bunch of silver dollars that my grandfather collected. There's a whole bunch of
Montreal silver coins. You know real nickel
nickels and series of coins. Like these are all wrapped up. I've never opened them. I don't even know what
they are but they appear to be some sort of a
Canadian series of coins. Like penny, nickel,
quarter, all that stuff.

So things like this that
have sentimental value, coins, stuff like that, I don't think anything like this should ever be sold. There's probably just as much value if not more value here
as there is in this pile but this sort of thing,
gold bar, silver bars, this is an unnecessary investment. It's like I said, one of
the stupidest investments I've ever made and one that
I'm glad to be divesting myself of, and ultimately I get
a little bit of return from. So, if you found this video
interesting, if you found my story about my stupidest
investment I ever made interesting, do me that favor,
hit that subscribe button, hit that notification bell,
please hit that like button so more people like you can see this video and we'll see you on the very next one. Cheers..

As found on YouTube

401K to Gold IRA Rollover

Read More

Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement

bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video

As found on YouTube

Retirement Planning Home

Read More

Vanguard Group founder on how to manage your 401 (k) plan

>>> WELCOME BACK TO WALL STREET. HERE'S MORE OF MARIA'S INTERVIEW WITH INVESTING LEGEND VANGUARD FOUNDER JACK BOGLE. MARIA: LOOK AT HOW MANY INDEX FUNDS THERE ARE. 5,000 INDEX FUNDS TODAY VERSUS THE NUMB OR F STOCK LOWER, 3,385 STOCKS. WHAT DOES THAT TELL US? >> IT TELLS US THAT PEOPLE ARE CRAZY, MARIA. WE DON'T NEED 5,000 INDEX FUNDS OR 6,000. THE WHOLE IDEA OF INDEX FUNDS WAS SIMPLIFY, SIMPLIFY, SIMPLIFY, RIGHT OUT OF RALPH WALL DO EMERSON. SEMP FIE SIMP FIE SIMPLIIE SIMPLIFY EVERYTHING. WE'VE NOW COMPLICATED IT BY GIVING PEOPLE MANY CHOICES AND BUILDING A SYSTEM WHERE THEY CAN TRADE THOSE CHOICES IN THE GLOAT GROWTH AND OUT OF VALUE AND SO ON. SO THERE'S TOO MUCH TRADING GOING ON, WHICH IS THE INVESTOR'S ENEMY FINALLY. THE ANSWER IS TO BUY AND HOLD THE STOCK MARKET VERY WELL EXEMPLIFIED BY THE 500, AND HOLD IT FOREVER.

AND THAT'S THE WINNING STRATEGY. ANY OTHER STRATEGY INVOLVES CHANGING THINGS. AND OVER AN INVESTMENT LIFETIME YOU COULD PROBABLY HAVE 40 CHANGES, 50 CHANGES. THERE'S IN WAY THAT CAN BE A WINNING STRATEGY. MARIA: YOU MAKE A REALLY GOOD POINT. WHAT ABOUT THE IDEA THAT PEOPLE WANT TO CASH OUT SOMETIMES. I MEAN, WHAT ARE YOUR MOST IMPORTANT ISSUES IN TERMS OF SELLING? YOU SAY HOLD ON FOR A LONG TIME. BUT WHAT IS A LONG TIME? WHEN CAN YOU ACTUALLY GET THOSE RETURNS AND WHAT DO YOU LOOK FOR AS A RUN TO SELL, JACK? >> THAT'S A GREAT QUESTION.

I GUESS MY FAIR TIME PERIOD IS THE SAME AS WARREN BUFFET'S TIME PERIOD, FOREVER. YOU KNOW FB FOR YOU KNOW,FB FOR YOU KNOW, F FOR YOU KNOW, FOROR YOU KNOW, FOR YOUR WHOLE LIFE. THERE WILL BE OPPORTUNITIES ALONG THE WAY. WE'VE SEEN THEM IN THE LAST 25 YEARS. TO GET OUT AND GET BACK IN. MARIA: VANGUARD IS CHANGING. THE RETIREMENT PLAN.

NOT HAVING THE FLAGSHIP S&P 500 FUND IN THE 401(k). WHY IS THAT. WHAT IS YOUR REACTION TO THE FACT THAT VANGUARD IS DROPPING 12 FUNDS FROM THE EMPLOYEE 401(k) RETIREMENT PLAN? IT WILL NOW OFFER 15 FUNDS, DOWN FROM 27. WHY? >> WELL, THE ANSWER IS THAT COMPANIES ALL OVER THE COUNTRY, AND I PRESUME VANGUARD, ALTHOUGH I DON'T RUN THIS PLACE ANYMORE, THERE HAVE BEEN TOO MANY CHOICES IN RETIREMENT PLANS. YOU COULD RUN A RETIREMENT PLAN WITH THREE OR FOUR CHOICES WITH ABSTOCK INDEX FUND, A BOND INDEX FUND, A BALANCED INDUCKS FUND AND THAT COULD BE IT AND INVESTORS CAN MAKE THE CHOICES EASILY. AN ASSET ALLOCATION ISSUE. AND BY GIVING THEM QUITE SO MANY ISSUES AT VANGUARD, NOT IN THE INDUSTRY GENERALLY, WE'VE CONFUSED INVESTORS. FOR VANGUARD IN PARTICULAR, THIS IS NOT GOING TO SURPRISE YOU, I THINK IT'S TOO BAD NOT TO HAVE THE 500 AS AN OPTION.

BUT IT'S PRETTY MUCH INDIFFERENT FROM AN INVESTMENT STANDPOINT BECAUSE OUR CREW MEMBERS, AS WE CALL THEM HERE AND BOGLE HIMSELF, JUST GO INTO THE TOTAL STOCK MARKET FUND WHICH IS 85% OF THE S&P 500 ANY WAY. I LIKE THE S&P 500 BUT I'M PERFECTLY SATISFIED WITH THE VANGUARD TOTAL STOCK MARKET INDEX FUND. A LITTLE BROADER. MARIA: WHAT DO PEOPLE NEED TO KNOW ABOUT THEIR 401(k) PLAN. I FEEL LIKE PEOPLE PUT THEIR MONEY IN THE 401(k) AND THEY DON'T NECESSARILY KNOW WHAT THE PLAN IS INVESTED IN. IS THERE ANY ADVICE YOU WANT TO GIVE US IN TERMS OF MANAGING THEIR 401(k) PLAN? >> WELL, THE LESS YOU MANAGE YOUR 401(k) PLAN THE BETTER. MAKE SOME CHOICES, ASSET ALLOCATE — ALLOCATE YOUR ASSETS, TO SOME DEGREE BASED ON YOUR AGE, AND YOU CAN DO THAT OF COURSE THROUGH THESE POPULAR TARGET DATE RETIREMENT PLANS IN WHICH VANGUARD IS SO TOTALLY DOMINANT IT'S ALMOST NOT WORTH TALKING ABOUT, AND GRADUALLY BUILD UP A BOND POSITION OVER A PERIOD OF TIME.

BUT THE OTHER OPTION IS EVEN SIMPLER AND THAT IS BUY THE BALANCED INDEX FUND, YOU'LL BE 60% IN STOCKS AND 40% IN BONDS FOR THE REST OF YOUR LIFE AND THAT MAY EVEN BE A BETTER STRATEGY. ONLY TIME WILL TELL. MARIA: IT'S SO IMPORTANT, JACK, JUST THIS WEEK WE LEARNED THAT THE SOCIAL SECURITY FUND IS GOING TO BE TAPPING INTO ITS FUND FOR THE FIRST TIME IN 36 YEARS. PEOPLE NEED TO UNDERSTAND SOCIAL SECURITY MAY NOT BE THERE FOR YOU WHEN YOU RETIRED. THE 0 NOWS THE O NOWS THE ONUOWS THE ONUSWS THE ONUS IS ON INDIVIDUAL TO MAKE SURE THEY HAVE A 401(k) AND SAVINGS IN THE STOCK MARKET, CORRECT? >> THAT'S CORRECT BTS.

I WOULDN'T WRITE OFF SOCIAL SECURITY QUITE SO SOON. I DON'T THINK THE NATIONAL POLICY OF THE UNITED STATES OF AMERICA, I BELIEVE THAT POLICY PRECLUDES A SIGNIFICANT REDUCTION IN SOCIAL SECURITY. AND TO ME IT'S KIND OF SAD THAT WE COULD FIX WIT SUCH TINY LITTLE CHANGES, CHANGE THE RETIREMENT AGE A LITTLE BIT, MAKE THE SOCIAL SECURITY MINIMUM.

As found on YouTube

401K to Gold IRA Rollover

Read More

Passive Income Ideas to build wealth | 2022

Hi, I'm Samarth from Wint Wealth. Imagine if you can make 1.2 lacs per year, apart from your regular source of income, why is this extra income required? I have a dream of owning a house. Someone might have a dream of owning a big car. Someone might want to send their children to a big university for higher education. Or someone might want to go on a world tour.

And it is not necessary that your regular source of income, is enough to help you achieve all of that. That is where the potential solution comes in. It's called passive income, but what is passive income? Passive income is any income which you generate by putting in lesser effort than your regular job or business. Hear this out carefully, I said lesser effort, had it been no effort then probably everyone would have been a crorepati. Would you believe that Warren buffet who is one of the world's best investor ever makes $4.3 billion per year, just through passive income wherein he has invested his money only in five stocks.

Today, we'll be talking about all avenues that you can probably explore easily to generate some additional passive income. First stream about which we'll talk is equity. Everyone wants to put their money into the stock market. But is it actually passive income? The answer is no, this is where dividend stocks or dividend mutual funds come in. Everyone knows what dividends are. But let me explain it to you in a very simple way. Let’s say you bought some shares in a company.

Now this company would be earning some profit through its business. Company has two options. Either it can reinvest that profit in the business to generate higher income, or it can distribute a part of its profit among its shareholders. When such profit is distributed among the shareholders, we call it Dividend. The stocks which pay dividends more than the industry or have dividend yield higher than the industry average, are called dividend stocks. Dividend mutual funds invest only in stocks which qualify as dividend stocks. Typically dividend stocks pay a dividend at least once or twice in a year.

That is the reason we have put them in the list of passive income. Where you will generate at least one income stream in a year. If you want to know which stocks actually perform very well as dividend stocks, we will be showing the chart on the screen right now. You can select some of these stocks as a part of your portfolio and help create a regular stream of income for yourself There are multiple other options through which you can participate in the equity market, but we aren’t focussing on them right now. And the reason for that is, all of them or probably the majority of them will qualify under active investment. We are only talking about passive investment and that is why we are only focusing on stocks which are dividend stocks or dividend mutual funds. Now we'll be talking about the second option, which you can explore, that is debt. You can have a lot of options under debt. You can invest in bonds. You can invest in bonds. That bond can be issued by governments. It can be issued by state governments. It can be issued by public sector undertakings, or they might be corporate bonds issued by private companies also.

Aside from bonds, you can put your money in fixed deposits. You can go to a bank, get a fixed deposit done. You will keep getting regular income, or you can put your money in post office saving scheme, Kisan Vikas Patra, et cetera, There a lot of schemes opened by the government where you can get a regular stream of income. Having said that, today, we will classify all these options as high risk, medium risk or low risk. Firstly, we will discuss about low risk. Low risk instruments include government bonds and fixed deposit. As of today, government bond of India 10 year benchmark is stating at around 7.50% which in itself for 10 years is a good rate, considering that it is the highest rating, which can be available to anyone, i.e. sovereign rating. Apart from that, you can go to any of the banks and open a fixed deposit and ensure that you get a regular stream of income monthly, quarterly or yearly or at maturity, depending on the option you choose.

Second, we'll talk about the medium risk options. Under medium risk options, we have corporate bonds. These bonds are issued by different companies. They can be issued by public sector, undertakings or private companies can also issue these bonds. And their risk is completely dependent on the entity, which is issuing it. If a triple rated entity is issuing it, then the risk factor is very low.

But if an entity, which is rated lower than triple a is issuing it, then the risk factor increases accordingly. By the way, if you want to explore corporate bonds then you can visit www.wintwealth.com where you can explore investment in corporate bonds wherein you can easily generate 9 to 11% fixed returns for short to medium term that is 12 months to 24 months. Another option which can explore under medium risk category under debt segment is money market funds. Money market funds are typically those mutual funds, which invests its corpus in short term instruments available in the market like treasury bills or commercial papers. Moving to the third category that is the high risk category. To generate fixed returns you can explore P2P lending. Having said that it's a high risk category and you should only invest your money when you are comfortable taking an exposure on any P2P platform. Third category. If we are talking about investments and not including Real Estate, then it will not be fair. Slowly, everyone is moving to an access based system rather than owning something. What I’m trying to say will be clear to you through this example: Everyone wished to have their own their own vehicle, their own car, but not everyone wants to invest that lump money upfront.

What do they end up doing? They enjoy the car ride by renting Ola or Uber. By the way, If you want to know more about renting a cab versus owning a car, please click on the link above and watch this video. Similarly, there has been a shift in renting out spaces rather than owning them. Smart Real estate investments can help you ensure a regular inflow of money through a income stream. Let’s say you decided that you want to invest in real estate. What options do you have? You can buy a flat or a house and rent it out for regular income. You can buy a land and lease out to any business for generating income. Or you can invest in funds which themselves invest in real estate. We'll talk about these in detail later in the video If you want to buy a flat or a house, you can probably choose a flat in a commercial area. For example, In Bangalore there are a lot of IT hubs. You can probably buy a flat near to one of the IT hubs and rent it out.

Because you are buying the house near a IT hub, then definitely there will be a lot of demand. If there will be demand, rent will also be better. You can expect in Bangalore, rental yield of around 3.5 to 3.6% yearly. I know this is very less, but if you conservatively assume that you flat or real estate’s value increase by 4-4.5% on an yearly basis, which is very conservative then also you're making a healthy income of, overall healthy income of, approximately 7.5-8% with a very solid asset being a part of your investment.

But real estate investment is not as easy as it sounds. Before selecting any property there are certain things which you need to take care of. Location of the property, Valuation of the Property, is that area providing good rental yield and more than that is there a demand for rented properties in that area. But if you don't have so much of time or you don't want to take the risk of investing your money directly in real estate, you can explore REITS i.e. real estate investment trust. In simple word, when you don't have the expertise or you don’t want to invest your time in selecting stocks then what you do? You invest in a good mutual fund. Similarly when you don’t have the time or the amount to invest in a real estate i.e.

A flat or a house or a land, you can invest your money in REITS. What REITS are? They're essentially mutual fund, which invest the pooled money into real estate properties. Whatever income is generated from these real estate properties, a part of it, in fact a majority part of it, is distributed among the unit holders as dividends. That is why it's a very simple way of taking exposure on real estate. Another option to take exposure in real estate is INvITs. Similar to REITS, here investment takes place in real estate only. Only difference is investment happens in infrastructure projects like roads. Here as well, whatever income these INvITs earn, majority part of it is distributed among the unit holders as dividend. Now that you've talked about the options where you can put your money to generate some passive income. It is also necessary to know that how much money do you need to invest in which stream, so that you have a balanced portfolio and a good inflow of regular income. Your portfolio composition will depend on a few factors.

Some of them are: your age, your risk appetite, your financial independence, and your goals. If you are around 30 years old, or you do not invest too actively, so I'm assuming you must be having some surplus funds. Let's assume that you’ve around 15 Lacs of surplus funds. If you invest these 15 Lacs of funds in these passive income options, so basis our calculation, we can assume that you will be able to generate around 8% per annum safely in these options, which translates to 1.2 lacs per year. If you have additional rental income from any of the investments which you might have done before, then this number might increase.

If you are in your early twenties or mid-twenties, our advice would be that you should be aggressive with your passive income investment. By that we mean, a major portion of the amount you will be investing in passive income options, should be invested in dividend stocks or dividend mutual funds, i.e. equity side. If you in your mid-thirties or early forties, then you can have a good balance of dividend mutual funds and dividend stocks, plus debt. Under debt as well, probably corporate debt more, because it'll help you generate returns closer to nine to 10% and you should aspire to save enough that you can probably get one real estate, which will help you get more income later.

But if you are in early fifties or probably closer to retirement, or if you have already retired then you should focus only on options wherein your capital is protected to a great extent. And it also helps you generate some additional income. Before we end, passive income doesn’t mean you invest your money and sleep. For every single penny that you invest, our advice is monitor them, not too actively as you do with your regular job or regular business or regular equity investments.

But our advice is any investment that you do, you should keep an eye on it. Passive income will help you generate a huge amount of income flows over the ears. And please do consider it as a very active part of your portfolio. By the way, if the recent market down trend has you buried, then you can watch this video. In this video we have tried to give out some tips wherein even during a market down trend, you can keep your money safe in the stock market and probably end up generating some more money.

Until we meet next time, happy Winting!.

As found on YouTube

Retire Wealthy Home

Read More

How To Retire At 30 Living Off Investments

in order to live off of
your investments completely. And I know that the title of this video may sound crazy about retiring by 30, and there are a lot of people
out there selling a pipe dream of you can retire by 30
as long as you invest in this course, or go buy real estate and while that may work for some people I'm not here to sell you guys a course or to pitch you on any
kind of product like that. What we're going to
simply talk about here is how much money you need to have invested in order to live off of your investments and essentially not have
to work to earn your money.

And believe it or not, there's
actually countless people out there who have in fact
retired as early as 30 years old, by following this exact strategy
that I'm going to outline. So if this idea of retiring early and not having to work for your money is something that interests you. What I want to ask you
guys to do is go ahead and drop a like on this
video just show your support. I really do appreciate
that as it helps out with the algorithm and allows this video to get shared with more people. But what we're going to look
at in particular in this video is something called the 4% rule, and that essentially
shows you just how much money you need to have set aside, in order to live
off of your investments. Now you can in fact live off of different types of investments like real estate or the stock market for
example or a business that's providing income for you. But what we're going to use in this video as an example is a passive
stock market investment, and we'll show you exactly
how much money you need to have invested in order
to live off of that income.

So the goal here with this
strategy is to simply invest your money and have a large
amount of money invested and then you would
essentially be living off of the interest income or
the growth of that money without touching the principle. And as I'm sure you guys can imagine if you're not touching the principle or your initial investment, then your money could
foreseeably last forever. Now, the sooner you're able to retire is all based on how much
money you're able to save up and how little money you are
spending each and every month, and there's actually a
whole movement of people that are following this
exact strategy, and it's something out there called FIRE, and FIRE stands for financial
independence retire early. And there's a lot of
people who are doing blogs and videos and all kinds of
stuff about this concept, and there are countless
examples out there, of people who have retired
as early as 30 or even less.

By following these strategies. Alright guys so there's
basically three steps you have to follow in order to do this, and as I'm sure you can imagine, step number one is to be frugal or to spend as little money as possible, because ultimately what
you're looking to do is save and invest enough
money that the interest or the dividends, or
whatever the growth is pays for your monthly living expenses.

And as I'm sure you guys can guess if your monthly expenses
are $6,000 versus $3,000, you're going to need a
lot more money invested to cover those expenses. So being frugal and saving
as much money as possible is actually going to serve
two different purposes here. Well, number one, the
less that you're living on the more of your paycheck
you're able to save up, and the more of your paycheck
you're able to save up, the more you're able to
contribute to that freedom fund, which will eventually be paying for all of your living expenses. And then second of all by spending as little money as possible
every single month, you actually don't need
to save up as much money to potentially live off of the interest or the growth of your money.

And we're going to go over
those exact numbers right now. Alright guys so step number two
that you have to follow here is going to be a tough one, but that is going to be saving 50 to 70% of your take home income and again, if you're looking to
retire by 30 years old, let's say you want to work from 20 to 30, and then not work for
the rest of your life, you're going to have to take
some drastic actions here. And that is why you need to live off of a microscopic amount of money. And that's why step number
one is so important, by cutting down as much as possible on those monthly expenses. So people who are trying to do this, you're not going to see
them driving brand new cars, you're not going to see
them going on vacations, they're probably going to be,
you know, eating canned beans and doing campfires in the
backyard as summer entertainment. Not that there's anything wrong with that, but they are literally spending
as little money as possible, because they're focusing
on the long term picture of what they are trying to do.

So people who are following
this FIRE movement are often aiming to save 30
times their annual expenses, and that will allow them to
withdraw about 4% per year without basically touching that principle and that is where that
4% rule comes into play. And that is basically where you're able to draw from an account about 4% per year, and over a long period of
time based on the growth of that account and those investments, it shouldn't be chipping
away at the principle which should in theory
give you unlimited money. So what you're aiming
to do here is to lower your monthly expenses as much as possible. Figure out what it costs
you to live per year, multiply that by 30, and then
save up that amount of money by saving 50 to 70% of your
paycheck every single week or month, or however often
you are getting paid. Alright so now the question
you guys have been waiting for, just how much money do
you need to have saved up and invested to live off of that money following the 4% rule. Well if your annual expenses
are $20,000 per year, they would recommend having 30 times that amount of money saved and
invested, so $600,000.

If your annual expenses were $35,000, that number becomes 1.05 million. If you're somebody
spending $50,000 per year on your living expenses
you would need to have $1.5 million saved and invested,
and for the final figure here, if you spent $100,000 per
year on cars and housing and food and all of that,
you would need to have about $3 million to successfully
follow this strategy. So I'm sure this goes without saying guys, the best way to follow the strategy and to reach that retirement as quickly as possible is going to be
to keep your monthly expenses as low as possible. And just to put it in
perspective for you guys, every additional $100
that you spend per month, if you follow this is
an additional $36,000 you need to have set
aside in that freedom fund to support that $100 of monthly spending. So if you're serious
about this and you want to retire at 30, or even younger, you are spending literally as little money as humanly possible. Alright so the final step
to following this strategy is going to be passively
investing in the stock market. So most people following this strategy are actually following
the Warren Buffett style of passively investing in index funds.

And if you're not familiar,
index funds are basically a way for you to have diversified
exposure to the stock market. Where you're not essentially
picking what stocks are going to outperform,
you're just passively owning the entire market. So people following this strategy are not out there trying
to beat the market, they are not stock
traders or stock pickers they simply passively invest
in these low fee index funds, one of the most popular ones being VOO or the vanguard 500 fund. And essentially what you are doing, is buying a small piece of the 500 largest publicly traded companies out there, and all the different
dividends those companies pay are all collectively put together, and then you earn a quarterly
dividend from that ETF. And over the last hundred
years or so the stock market, on average, has returned
about eight to 10% per year. So if you were only drawing
4% from that account, based on historical data, you should never be
touching that principle over a long period of time.

And that is how you would
be able to live off of 30 times your annual income, if you save that money and invest it. Now that being said that
is the perfect segue into the sponsor for this
video which is Webull. So if you guys are
interested in getting started with investing in the stock market, this is a totally commission
free broker out there, meaning you're not paying
any fees to please trades with them and you can
purchase the Vanguard 500 ETF that we're talking about in this video right on that Webull platform, and not only that, they're
willing to give you up to two completely free stocks just for opening up an account with them. Number one, if you open the account, you're going to get a free
stock worth up to $250, and then when you fund the account, you'll get an additional
stock worth up to 1000.

So if you do the math there, that is two completely free stocks worth up to $1,250. Now I am affiliated with Webull, so I do earn a commission in the process if you use my link, but
if you guys are interested in grabbing two completely free stocks that is going to be down
in the description below. So finally, the last
thing I want to do here is to put all of this together, and go through a real
example of how you could in fact follow this strategy and even retire by 30. Now again, this is going to
require some very drastic saving because essentially you're trying to work for about 10 years of your life and then not have to work
for the rest of your life. So most people will never
be able to accomplish this, because of the amount of
sacrifice that is required, with that being said, let's go ahead and run
through the numbers now. So let's say you're earning
a salary of $75,000 per year from your job, and ideally,
you don't have any, you know school loans,
student loans, medical bills, or anything like that.

So you haven't gotten
sucked into the consumerism and you don't have like a brand new car so your expenses are as low as possible. And I know this sounds like
you know theoretical situation, but this was actually
about the same situation I was in, when I graduated
college I was 20 years old, now I was making about $68,000, so a little bit less, but I had no debts, I had no car payment,
and so I was somebody who could have potentially
followed this strategy. So after you pay your
taxes, your take home pay is going to be around $56,250. Now we know already in
order to pull this off, you need to save 50 to
70% of that take home pay in order to actually build up enough money to live off of that income. So we're going to assume
you are saving 70% of that take home pay. So you would need to live off of 30% of that post tax income, which
amounts to just over $16,000, or around $1400 per month. Now, is that possible? It absolutely is.

Is it easy? Absolutely not, you're certainly not going to be going out to the
bar and buying beers or going out to dinner,
you're probably going to be living in a tiny apartment driving an old car and eating at home for breakfast, lunch, and dinner. But if that type of
sacrifice is worth it to you for the long term picture, it is something you may
be willing to do yourself. So each year you would
be saving and investing a staggering amount of money, which is 70% of your take home pay
or just over a $39,000. And that is how you would
be able to pull this off, and assuming you kept that
cost of living the same at around $16,000, just over 16,000.

Your freedom number, or 30
times your annual expenses, would be just over $506,000. So, how long would it take
you to save up that money? Let's go ahead and answer that now. Well if you took that
$39,375 per year of money that you are saving and
invested in the stock market, earning 8% return, and
as we said, historically, it's an eight to 10% so we're going to go on the conservative side, well in 10 years at 8%
return career you would have $570,408.40, meaning you could then, if you kept those living
expenses the same, following that 4% rule, not have to work for your
money past that point. And just to circle back
guys what this really comes down to is the level
of sacrifice involved. Are you really willing to live
off of about $1400 per month, or do you want to have vacations and going out to get dinner
and things like that? So it's not people who are doing this that are out there traveling and dining it's people that are living
as frugal as possible and finding enjoyment
in other areas of life other than just, you know,
spending money on dining and things like that.

Now, is this a strategy I
would personally follow? Probably not because I
am one of those people that enjoys traveling, I enjoy dining, and I do spend a little bit
more than the average person, so my freedom number would be
multiple millions of dollars, but instead I follow the
strategy of earning as much as possible and saving a
lot of that earned money, and then eventually allowing
that to supplement my income by having that interest
or the growth of my money paying for a lot of
those things that I want. And believe it or not,
guys, there are honestly countless people out
there that have followed this exact strategy and
retired at 30 or less. One of the most well known people being Mr. Money Mustache, he has a whole blog where he documented this whole journey of becoming financially
independent and retiring early with both him and his wife.

So I'm going to link up his blog down in the description below
as well as a couple of other stories about
people who have followed this exact strategy and
retired at 30 or less. So that's going to wrap
up this video guys, thanks so much for watching. If you're new to this channel, make sure you subscribe and
hit that bell for notifications so you don't miss future videos, and I hope to see you in the next one..

As found on YouTube

401K to Gold IRA Rollover

Read More