Archives for the ‘Financial Tools’ Category

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

29 Nov 2012
0

Introducing our Tools & Calculators

Perhaps one of the most challenging aspects of being a self directed investor is that you need actionable advice in order to make the best decisions about your future. Because of this, we’ve developed a suite of calculators to help you evaluate your present and future investment decisions.

Right off the bat, we’ve produced 4 highly-demanded calculators. Our most basic one is the Compound Interest calculator, which allows you to estimate how much your investment might grow over time using the power of compounding interest.

Our “What Account is Right for Me?” calculator allows you to determine – based on future contributions and your retirement time horizon – whether you benefit more from investing your retirement funds in to a Traditional IRA or a Roth IRA. Knowing the difference between accounts could mean tens- or hundreds-of thousands of additional dollars at the time of your retirement.

If you already have a balance in a Traditional, Simple, or SEP IRA, you may be wondering if it’s worthwhile to convert your balance in to a Roth IRA. Though you may spend some extra money on taxes in the short run, the long term benefits of a Roth IRA should not be overlooked – as the taxes on the principle and the earnings will already have been paid by the time you retire. Because of this, we’ve developed an innovative Roth IRA Conversion Calculator that allows you to estimate virtually every condition of your retirement plan and provides you with a clear answer based on your expected tax rate at retirement (the ultimate factor when deciding to stay in your Traditional IRA or convert to a Roth). We also provide guidance for a gradual conversion to a Roth IRA – something nobody else offers.

Finally, for those of you entering the world of Self Directed Investing from a more traditional investment strategy, we’ve included a powerful Portfolio Analysis tool. This tool is designed to help you re-allocate your investments based on the wider range of available investments – such as trust deeds, precious metals, real estate, and more. We’ve even provided a structure to allow you to choose what sort of market you think we’ll face in the future – ranging from a future depression / recession to a booming economy. This ensures that you can make the decision that is right for you and your family and hedge against downturns in the economy.

Of course, all our tools are free to use for our members – so we invite you to join USelfDirect. Membership is free and signing up takes less than 30 seconds! Become part of the fastest-growing self directed investor community and discover why USelfDirect is leading the way to financial solutions for the 21st century.