I need to know how I can obtain a good retirement plan, for the next 30 yrs. Work a low income occupation, (less than $14.00 hrly).At least by my states standards, & have less than $10,000 saved in interest returned CD's. How can I invest without losing what I have. Have daughter attending college on a 4 year grant, thankfully! Plan to have a new career plan, that will bring in more income, within the next 12 months.
Please only serious replys, I'm starting over & want a fresh & productive start in my life. Hi Soliloquy,
Wow! This is a though question to answer in a 400 hundred page book, let alone just a few lines but I'll do my best. First, congrats for rolling up your sleeves. A lot of folks just give up on "re-starting"; you have the right attitude.
First, invest in yourself! If indeed you are prepping for a new career in 12 months, that should be your number one focus. You sound like a smart person so there is no reason you should not be making more than $14 per hour. Make sure you discover your aptitudes/strengths and weaknesses. Find out more about yourself. Go to your local college or university and ask to speak to a guidance counselor or orientation specialist. One of the best quotes I've ever heard from Maya & Oprah is "There is no situation you cannot educate yourself out of..." (I paraphrase, but you get the point, I'm sure.).
Find out what you like, find your strengths, get the know-how and change to a more productive career. With 12 to 18 months training or education, you can easily get a job that pays 1.5 times to twice as much as you make now. That is a great investment! If you made an extra $8 per hour for 40 hours per week for 50 weeks for 20 more years, that equals an additional $320,000 over the next twenty years !! Try, if you can, to find a new career or company that will cater to the 76 million Baby Boomers retiring over the next 25 years. If you worked as an admin in a Biotech firm (odds are you have most of the skills required already), you could be pulling $20 to $25 per hour and have all kinds of benefits (health, paid education, 401K, etc.) or train in the health services fields... Boomers are getting older and will need plenty of health care professionals to help.
Small moves Soliloquy!... Small moves... Invest in yourself!
Second, I like what I read above... from Griffin: The biggest drag on your saving capacity is the TAX MAN. Do everything you legally can to minimize the tax impact on your income. Learn to do your own taxes. One of the best ways to do this is to to buy a small software called TURBOTAX. The software is a no brainer to install and operate and you will learn a lot about how to save on your taxes. Do open a ROTH IRA. Do get an employer who has a 401K plan and max out your savings there.
Stay away from real estate right now for a while... until the sub-prime mess settles down... maybe another 12 to 18 months at least.
Learn about money, there several good books out there you could get your hands on. Email me and I can suggest a few. Again, ask those who know. Consult, university professors who teach finance and business, do not be afraid to ask those who know. They would love to help you and your family out of a sticky situation and onto a better future. NOT BROKERS AND BANKERS! They will only try to sell you there products and services. Read Suze Orman books first. I agree with a great majority of what she teaches and she speaks openly, honestly and understandably to women about personal finances. Don't just read her last book, go to Amazon and get cheap used copies of her first books and start applying the knowledge.
Learn to understand cycles: Money flows like the ocean currents. Learn to surf the right currents and understand the tides and the winds.
Do these things, and you will be very successful Soliloquy. Do not hesitate to contact me if you need me to expand on some stuff.
Cheers! Sounds like Saving Plans to me. Investment plans allow individuals to simply purchase a specific amount of stocks, bonds, or indices on a regular repeating basis, cutting out a large part of the hassle while allowing for some of the main advantages of investment. If you've been considering an investment plan but aren't completely sure what they might entail, the following information might help you to decide whether or not an investment plan is the right investment option for you.
The Mechanics of an Investment Plan
Basically, an investment plan is a method of making multiple investments over time at regular set intervals. The funds for the investment are taken from a cheque, savings, or money market account automatically, and are used to purchase stocks or bonds that you have decided upon beforehand. In most cases you can change the amount, frequency, or purchased stocks or bonds of the automatic investments at any time, though depending upon the broker through whom you're doing the investments you may be subject to fees or penalties especially if changing details relatively close to the next investment date. Most online investment firms offer investment plans that you can change at any time free of charge.
Deciding How Much to Invest
When deciding how much to invest each cycle with an investment plan, you should take care not to overextend your funds and bring yourself up short. Make sure that the amount that you choose is available and that you'll have it to spare each time your investment comes up鈥?it can be difficult to plan for events in the future, and just because you have a surplus now doesn't mean that you won't find money running tight a few investment cycles from now. If you feel that you're reaching a point where you won't be able to afford your regular investment, go ahead and reduce the investment amount or put a hold on the next scheduled investment鈥?better to put less in than short yourself afterwards.
Choosing What to Invest In
Making the decision of which stocks and bonds to invest in can take some time, but it's worth it鈥?this is your money that you're dealing with, and you shouldn't invest it without putting some thought and research into your decisions. Find stocks or bonds that have performed well over time, and that are likely to continue doing so鈥?they may be expensive at times, but you aren't making your total investment all at once so it doesn't matter as much. Don't be afraid to add new stocks or bonds to your plan later, either鈥?this can help to diversify your portfolio. If your goal is retirement, then I would recommend that you move your taxable CD's into a ROTH IRA registration. The limit on ROTH investments this year is $4K and will be $5K next year. You can continue to contribute to this as often as you like, subject only to the limitations of the investment. As far as investments are concerned, I like mutual funds for the average small investor (myself included). Go to Fidelity.com or Vanguard Mutual Funds and you will be given a plethora of information. Those site can help you find the right investment for your risk tolerance, and it doesn't cost you a dime to research.
If you do get a better job that offers a 401(k) program, definitely get in on it if they offer you matching contributions.
Honestly, there is a lot you could write on this topic, so feel free to respond if you have a more specific question. Try this:
Step by Step Retirement Planning Guide
http://www.stock-investment-made-easy.co... Yours is a great question. This is something that maybe you should not try and do by yourself. Mistakes can be very costly. You can invest in various different types of retirement plans and add to them monthly. I would contact a professional investment advisor if you know one. If not please read my profile and email me. I would be very happy to assist you any way I can and give you absolutely free advice on what to do. Keep it simple. Pick a diversified stock mutual fund with an excellent long term record from Vanguard or Fidelity, put in a minimum required to get started, and add $100 or more on a monthly basis.
Most importantly, don't get jerked around. Most people's returns in mutual funds are lower than the mutual funds' returns - because of frequent switching and chasing hot performance.
Picking a fund with a good long term record will help you stay put - which is the only way to build wealth over time in a mutual fund. You will need a good starter book. Take the time to read one of these and you will then become much more productive in the world of investing:
- Mutual Funds for Dummies, by Eric Tyson
- Free book at http://www.invest-for-retirement.com
- The Boglehead's Guide to Investing keep your cash hidden,the markets are in a general sell off Hi Soliloquy,
If you need to learn theory, read good books.
If you want to earn fastest and highest returns, ask professional advisor or experienced person.
I am not a financial guru, but I am getting 40% annual interest. You may contact me by e-mail (check my profile).
Good luck!
Lucky AL |
