The Standard & Poor’s 500, more commonly known as the S&P 500, is an index of 500 large United States companies. It is often used as a barometer of the health of the U.S. stock market and economy. With an immense amount of historical data, we can get a better understanding of what it is like to invest in the stock market over the long-term.
These days, individuals switch employers more often than ever before. With that, 401(k) and other employer-sponsored retirement plan accounts are left behind at former employers. It’s not uncommon to hear of someone with 3 or 4 various 401(k) accounts, if they haven’t consolidated them into one.
As a fee-only financial planner, I understand as well as anyone what an expensive city can do to one’s financial life.
When it comes to discussions around contributing money to retirement accounts, the main focus is usually on putting money away for a future retirement or for reducing current taxable income. Both of these are extremely valid points, but there is a third benefit that retirement accounts have for one’s financial health. That benefit is asset protection.
They say there are two guarantees in life - death and taxes. Today you might learn that that’s not necessarily the case. A good understanding of the tax code presents many opportunities to earn tax-free income from various investments, services, and employee benefits.
There is a certain allure to the thought of retiring early. Many Americans are tired of their soul-sucking jobs and daydream at the thought of living out the remainder of their years on their own terms. Who wouldn’t want that? Having a reason behind your retirement savings is key to staying the course when times get tough.
In the grand scheme of things, money is just a tool and net worth is just a number. After all, the monetary system we know today is relatively young compared to the history of the world. We humans are simply seeking a fair way to reward our efforts of improving the world we live in.
Warren Buffett once said, “in order to succeed, you must first survive.”
I see this on a regular basis with individuals that want to get started investing. I am always excited to hear about how they are navigating this new stage of life, but often get concerned about the approach being taken.
Short and sweet. These are my thoughts on personal finances.
Money scripts are subconscious beliefs that one has developed since childhood and play a major role in financial behaviors. When money scripts are defined, they can be used to avoid financially destructive behaviors and in turn create good financial health.