Heads up, you know darned well that you have to do something with your money. Something besides enjoying your weekends and getting your hands on the latest electronic gadget. That something, as you have probably already figured out is about getting up close and personal with the world of investments.
The short answer is YES; of course it takes money to make money. To make money in the stock market, you must have money to make the initial stock purchases. Starting a business requires money to buy inventory, marketing materials, office space and equipment. Even lottery winners had to have the seed money required to buy the ticket. The only exceptions that come to mind are inheriting, stealing or finding money.
Millennial! Another of those media driven buzzwords, used to label those between the ages of 18 and 34, while the term Gen Xers define those between 35 and 50 years of age. Boomers, the group to which I belong, are those 51 through 69. This post covers 8 key pieces of advice I proffer to this generation.
There is a common trait that shows up on the road to building your wealth. This trait shows up as you continue to add to your investment portfolio. You do have an investment portfolio don’t you? And don’t even start the blame game when this trait is revealed in just a moment.
Do you run out of money before you run out of month? Many do, but it doesn’t have to be that way! Wealth is the result of widening the gap between what you earn and what you spend. Most of us make the mistake of ramping up our spending as our disposable incomes rise. This is self-defeating. If you do not develop a respect for money, it will always elude you.
Money does not grow on trees. Money is the reward you get for the hard earned effort and results that you put into the work you do for it. It is imperative to save the money you have generated and invest it on the things that will support your growth. It could be that dream holiday that you have always wanted, or the start-up business that you have been talking about with family and friends. Saving is a life skill, a mind-set that determines our survival.
Retirement planning is the most important aspect of wealth management, as individuals close in on retiring. Preparing mum and dad for their retirement will require sitting down with them and going through the motions. Look at identifying their needs and making sure that they have a source of income, post retirement.
Most of us would like to maintain our current lifestyle even when we retire. In order for this to be a reality, early retirement planning is extremely critical. It takes many years to accumulate the funds to live comfortably when one is no longer receiving a constant stream of income like a salary. If you start investing earlier, it will allow for the accumulation and growth of funds over decades prior to retiring. This will allow you to build up a substantial amount of resources so you can enjoy your retirement life.
Life insurance is an essential part of having a comprehensive financial plan. There are numerous types of life insurance policies which range from fairly cheap to expensive, depending on the type of coverage selected.
There are two basic types which are term life and whole life. The first is basic coverage that provides a death benefit protection for a defined period of time and the latter provides a lifetime benefit for a set premium amount. Australia has one of the widest ranges of insurance products in the market.
Who can you trust
An enduring power of attorney is an extremely powerful legal document, so it’s not only important to have one but even more important to appoint the right person(s) for the job.