Archives for June, 2013

27 Jun 2013
0

Americans, Assets, and Retirement

 

An article posted on Marketwatch.com came through my Twitter feed today. It provides some startling statistics from a consumer finance survey conducted by the Federal Reserve.

“Analyzing data from the Federal Reserve’s sweeping Survey of Consumer Finances; Rhee concludes that 40% of people age 45 to 64—more than 18 million households—hold no assets at all in retirement savings accounts. And those that have them aren’t necessarily in a position to feel smug: Only 26% of those between 45 and 54 and 36% of those ages 55 to 64 have total savings greater than their current annual income.”-Market Watch

Take a second and read those statistics again. According to the Federal Reserve, more than half of the people approaching retirement don’t have anything set aside. This is a serious problem in our country especially considering the influx of baby boomers reaching retirement age. The article mentions that the “Silver lining” for some of those people is that many of them worked in jobs that had pension plans set up, but what about all the other people who are still working now and can’t rely on a hail Mary play to save them in the fourth quarter of their income producing game time? Employee pension plans are something that existed for railroad workers (and the like), and many jobs today don’t have plans like that. I would think that there are lots of people out there standing up and demanding answers to questions like: So what about the rest of us? What are we going to do about our retirement?

Well, unfortunately I did not write this article to try and answer that question nor do I think that I am really qualified to do so. I was merely exposing the frustration that many Americans are going through. Perhaps a more focused question that I can shed some light on is: how can we lower that staggering 40%? The solution lands in the realm of EDUCATION. One of the biggest reasons why people are suffering with retirement plans today is that they are not educated on what kinds of savings plans exist, what the difference between types of investments are, and where they can go to find honest advisors. The truth is that there a many things that someone can invest in right inside of their IRA: Stocks, ETFs, Real Estate, and even small businesses. Each of these investment types is best suited for different investors. The problem is that people don’t know how to fully utilize an IRA to maximize their returns in a way that fits their personal plans, needs, and strategies. If people were more educated on how to invest in things they wanted to (and understood) within an IRA, then there would be a lot less people struggling with having enough set aside for retirement.

 

For the full Market Watch article click here

Source: marketwatch.com http://blogs.marketwatch.com/encore/2013/06/21/tallying-the-retirement-account-have-nots/?link=sfmw

27 Jun 2013
0

The Rule of 100 – How to use this investment tool.

Investors are always trying to evaluate risk and how much risk they are willing to take on within their portfolios. A great amount of risk can potentially result in a large reward; it can also lead to an equal or greater amount of loss. For some investors, more risk is a good thing because they have time and resources to fall back on. For others, risk is something to minimize. So how do you know what amount of risk you should be taking on?

The “Rule of 100” is a simple way to estimate how aggressive your investments should be. We have provided an easy-to-read infographic that will teach you how to use the “Rule of 100” and what it can show you about your portfolio.

Keep in mind that the Rule of 100 is a tool that helps make estimations from a general prospective. Each person is different and your investment strategy may not reflect exactly what the Rule of 100 shows. That is OK. The purpose is to have investors thinking about what changes to make to their portfolio as they get older. Try to use this investment tool on your own. What does it tell you? We would also love to talk to you about how to use this tool and other investment resources we have. Feel free to give us a call or email.

Here at USelfDirect we believe in empowering investors through education. Our team of experienced Self Directed Investment professionals are here to help answer your questions. We have years of experience and have seen nearly every type of account, investment, tax issue, funding method, and question imaginable. Give us a call and let us offer our expertise.
(888) 226-6022

For more information on this investment tool or on others, please send us an email at info@uselfdirect.com

Also try some of our other investment tools by clicking here

27 Jun 2013
0

The Rule of 72 – How to use this Investment Tool

One of the most common tools we teach our clients about is the “Rule of 72.” This rule allows you to quickly estimate the future value of your money as it pertains to the returns you are receiving right now. Even Albert Einstein recognized the strength of the time value of money!

One of the biggest difficulties investors face when analyzing investments or planning for retirement is understanding how to estimate what returns they should be receiving NOW in order to have the money they want in the future. Fortunately there are some easy to use tools that can help any investor better analyze returns. One of those tools is the “Rule of 72.” We have provided an easy guide to understanding how to use this tool and how it can help you invest smarter.

Here at USelfDirect we believe in empowering investors through education. Our team of experienced Self Directed Investment professionals are here to help answer your questions. We have years of experience and have seen nearly every type of account, investment, tax issue, funding method, and question imaginable. Give us a call and let us offer our expertise.
(888) 226-6022

For more information on this investment tool or on others, please send us an email at info@uselfdirect.com

Also try some of our other investment tools by clicking here