According to a recent survey, 88% of American investors say that market performance is the most important factor in their investing. That means, not surprisingly, that earning higher returns and making more money is the #1 reason they choose to invest. However, the same survey also signals a continuation of a trend among a number… Read More
What is a Money Market Account? (as reported by Amanda Dixon on www.bankrate.com)
Money market accounts are a type of savings accounts that allows you to write checks and use a debit card on a limited basis. They are not like checking accounts, which allow for an unlimited number of transactions, but they do offer interest (up to 2.01% per year). Amanda Dixon, writing for Bankrate.com, has put… Read More
Spend Now or Spend Later (as reported by J. D. Roth on www.getrichslowly.org)
For young people who are first entering the workforce, saving money can seem quite daunting. Although you are earning money for the first time, there are immediate demands on that money – clothes, commuting costs, food, rent, etc. It is hard enough to earn enough to cover your expenses, much less have anything left over…. Read More
Personal Savings Rates (as reported by Trent Hamm on www.thesimpledollar.com)
Your personal savings rate is an important financial metric to track. Calculating it is simple. To do so, you need to know two things: How much money you added to long-term savings last year How much money you earned after taxes last year We use long term savings to differentiate from money you put in… Read More
Save for College with a 529 Plan (as reported by Matt Becker www.thesimpledollar.com)
The cost of college continues to climb, and unless something changes in how we treat higher education in this country, it’s not likely to come back down anytime soon. So for those of us who would like to help finance our children’s education, 529 Savings Plans provide for a smart investment. 529 Plans, sometimes called… Read More
The Magic of Compounding (as reported by J. D. Roth on www.getrichslowly.org)
$100 invested with an annual return of 8% (a conservative estimate of stock market returns) will be worth $108 in one year. At the end of year two it will be worth $116.64. That’s because you get 8% on the full $108 value at the end of year one, rather than just another $8 every… Read More
Millennials are not Investing (as reported by Preeti Varathan on www.qz.com)
There are significant differences in the financial habits of different generations. And depending on whom you ask, that might be reason to worry about the future of our economy. Millennials, those born between 1983 and 2000, report an unusual ability to save with every paycheck. But rather than investing in the stock market, most young… Read More
Behind in Your Retirement Savings? There’s Still Hope (as reported by Oliver Staley on work.qz.com)
A new study by the National Bureau of Economic Research tells us that if you are behind on your retirement savings in your forties and fifties, all is not lost. You will still have time to make up much of the gap. The only catch is, you may have to work a little longer than… Read More
Getting Over Your Investment Fears (as reported by Matt Becker on www.thesimpledollar.com)
There are a number of reasons why people choose not to invest in the stock market. Could it be that they don’t know how to get started? Maybe they are afraid they will lose their money. Or perhaps they don’t believe they have enough money to invest. In fact, 61% of Americans between the ages… Read More
Big Paychecks Don’t Guarantee Success (as reported by Holly Johnson on www.thesimpledollar.com)
The two sides of the equation for how to grow your wealth that we always talk about are: Make more money Spend less money Often, we take aim at the first goal. But a bigger paycheck does not necessarily set you up for financial success. And it’s important that we understand the reasons why so… Read More