In 2019, only 55% of Americans invested their money into the stock market.
Investing money can help you retire at a much earlier age. It is important to invest some money in the future so that you don’t have to work for the rest of your life.
In 2019, only 55% of Americans invested their money into the stock market.
Investing money can help you retire at a much earlier age. It is important to invest some money in the future so that you don’t have to work for the rest of your life.
More than half of Americans have some form of investment in the stock market. What can you do if you want to take an active roll in investing your money?
You’ve worked hard for your money. Isn’t it time for your money to work hard for you?
Now that we’ve turned the calendar to another year, another decade, it’s time to figure out what goals we would like to set.
Specifically, in this post, I’m going to go over the goals that I’m setting for myself, why I’m setting that goal, and how I’m going to put a system in place to achieve that goal.
Typically, when you’re setting goals, you should be very specific. You’ll notice, that I wasn’t. I get more granular with my goals in the systems section.
Getting out of debt and saving for retirement we can lump into one system, as they both revolve around finances and me reigning in my spending.
Until April, this will be incredibly challenging, as I am currently paying my mortgage on my house and the rent for my apartment.
So until I get my house rented (I have tenants set to move in, in April), I’m kind of stuck. Once that happens, however, I’ll have the debt repayment pedal down to the floor.
Simultaneously, I’ll contribute $20 per month to my retirement account, just to get in the habit of doing it again. Start small, enforce the habit, then increase the dollar amount.
Of my goals, incorporating meditation practice should be relatively easy. I know my preferred style – I’m not one to sit pretzel-legged on a cushion. I lay down on the floor, on my back, which some relaxing music playing.
The hard part is a) making the time for it and b) doing it consistently. To start, I’m going to set my alarm for 5 minutes earlier than normal.
5 minutes might not seem like a lot, but if I wake up 5 minutes earlier, that gives me 5 minutes to meditate. If I do that consistently for the next, say three weeks, those extra 5 minutes won’t seem that, and I can scale it to 10 minutes.
As I noted in last week’s article, when forming a habit, you have to start small and then scale up.
Reading every day. This is a must-do for me. It’s good for my mind, it’s good for my soul, it’s good for everything. I have a great many books on my list, but they will all fall into a specific genre – finance, philosophy, religion, or biographies.
The first one will help with work. The last three will help with life.
Every day, before bed, I’m going to read for 15 minutes. That’s my starting point. Once I get into the habit, the amount of time I read will increase.
Spend more dedicated time with my son. This is an easy one. Just stay off my gosh darn phone.
Keep it in my room or in the kitchen. Not in my pocket, where I can easily access it. Put the ringer on and leave it alone.
If it’s an emergency, someone will call and I will hear it.
This will also eliminate a distraction, so if he goes to bed for the night, I can immediately pick up a book without getting sucked into the social media black hole.
Exercising every day. I read recently in a book about the Dalai Lama that exercising your mind is more important than exercising your body, so I’ve put that on the back burner.
I have a pull-up bar in the doorway to my bathroom and I do 5 pull-ups every time I go in, but that’s not enough dedicated, consistent time for exercise.
I think doing it in the morning makes the most sense. I’m too tired in the evenings to exercise. The question is, do I do this before or after meditation?
Probably after, as I need my mind at ease when I meditate.
So instead of waking up 5 minutes earlier, I’ll start by waking up 20 minutes earlier. Dedicated 15 of those minutes to exercise and the remaining 5 for meditation.
Related reading:
A Systematic Approach to Goals
Worthy Goals for You to Set and Crush
How Do You Set Financial Goals?
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
With 2020 staring us in the face, it’s time to review goal setting and the systems you can put in place in order to reach those goals.
“A goal without a plan is just a wish.” – Antoine de Saint-Exupery
That said, let’s look at systematic ways to approach goal setting and actionable tools you can use to smash those goals.
Here are a few articles I’ve written in the past about financial goals:
Worthy Goals For You To Set And Crush
How Do You Set Financial Goals?
We can think of systems as the sub-category of actionable steps. A routine is another word for it. When it comes to goals and habits, you can’t rely on will power. You have put a plan in place to do the work for you.
Take exercising for example. You need to create low barriers for yourself. Wear your gym clothes to bed or have your bag packed the night before.
If you go to the gym, put your bag and your keys in a place where you have to pass them to get to your car.
If you exercise at home, have your routine and your equipment laid out and ready for you.
When it comes to creating habits, James Clear, the author of Atomic Habits, likes to break down the habit into bite-sized pieces.
For example, if your saving for a down payment, go to your banking app and transfer $1 from checking to savings every morning (or whatever amount is realistic for you).
When that becomes second nature, bump it up a dollar a day.
Another thing that James says is, “People ask me all of the time, how many days does it take to create a habit? My answer, all of them because if you stop doing it for one day, it’s no longer a habit.”
This section is speaking specifically to mental health versus other goals. You could also consider physical health as an internal goal, but for this article internal relates to mental health.
There are several things you can do to work on your mental health. See a therapist, exercise, and start a journal. Those three are low-barrier, easy things you can implement into your day to help.
Meditation, medication, and other forms of mindfulness training/practice can also help. There’s a podcast that I listen to regularly called “10% Happier” that will help you with establishing a meditation practice.
Do some research about this. Meditation can and will take many different forms, and not each modality will be right for you. Some may find that magic mushrooms from a magic mushroom dispensary can help them to relax, whilst reading has also proven to have meditative benefits.
It really is up to the individual as to what they consider, short, medium, and long-term, but my definitions are as follows: Short-term – less than 3 years. Medium-term – 3-15. Long-term – 15+.
My definitions are almost entirely based on the investability of those assets for that specific time period.
Once you’ve established your short, medium, and long-term goals you can break them down into actionable steps as we talked about earlier.
Each New Year brings about resolutions that we hope to achieve. Whether it’s getting in shape or paying down debt, your barometer for success should be progress and consistency.
Are you in a better place than you were on January 1st? Do you have more saved? Are you still committed to the goals you set in the first place?
Yes. It feels great to set a target and hit it, but as far as I’m concerned, if you’re better than you were yesterday, that’s all that matters.
Take it one day at a time and keep your eyes on the prize. You got this!
Related Reading:
How to Set Long & Short-Term Goals (And Reach Them Too!)
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
If you are looking to make smart money, you have wondered about your options, and have considered cryptocurrencies as an option. It can? Find out
In a world where everything is changing so dramatically and technology is advancing by leaps and bounds, people look for innovative ways to solve problems. The latter applies to all areas of life, including personal finance. Given this, you have surely heard the option of investing in cryptocurrencies today, making money from it and being the millionaire tomorrow. [Read more…]
Owning a credit card is one of the greatest assets that you can have. However, the slightest mistake can cost you quite a penny. You can get a high-interest rate charge, incur a late fee, close the credit card or worst-case scenario tarnishes your credit score.
Nonetheless, did you know that the same credit card, when used correctly, can assist you in building a credit history? You can have a magnificent chance to save money, build credit as well as enjoy the awesome perks. You ought to avoid common credit card mistakes to make the most of your credit card. These fatal mistakes are as follows and ways to prevent them.
The 401k has grown in popularity over the last couple of decades because pensions have all but vanished; as a result, strategies around taking withdrawals and how to limit taxes and penalties are extremely prevalent.
In this article, we’re going to discuss the common penalties and taxes, and some of the strategies you can deploy to reduce them.
In almost all cases, a penalty applies if you withdraw from your account before the age of 59 ½. This is a 10% tax penalty. (Be advised: All withdrawals are subject to ordinary income taxes)
There is also a tax penalty if you fail to withdraw your Required Minimum Distribution (RMD). This applies to individuals over the age of 70 ½. This penalty, however, is 50% of the amount you should’ve withdrawn.
There are several exceptions, however.
Additionally, with the new Secure Act, there have changes to required minimum distributions, contributions, and others. For more information, click here.
*All exceptions may have certain requirements that need to be met to qualify for the exemption. Please check with your 401k Plan Administrator and Financial Advisor regarding your personal situation.
With regard to tax-saving strategies on 401k withdrawals, there are no short-cuts or exceptions like there was for the penalty section.
The best way to save money on taxes when taking distributions is to be strategic.
If the expense you are withdrawing for is something that can be planned ahead of time, determine your current tax bracket, figure out how much you’ll need at that future date, and withdraw slowly over time (how much you withdraw depends on how soon you’ll need it).
For example, if you are in the 22% tax bracket, are $10,000 from going into the next bracket, and need $40,000 for a down payment in 4 years, then withdraw just under $10k each year.
This assumes that your income and tax bracket will stay the same.
Another way to go about it is to utilize Roth conversions. If the intention is to minimize or eliminate your tax liability for retirement, do a Roth conversion every year. Just be mindful of where you are in your current bracket, so you aren’t bumped into the next one.
In this example, however, it can be counter-intuitive because in most cases, your tax bracket in retirement is lower than it was while you are working. This is commonsense, though. You’re making less, so logically you would be in a lower bracket.
With regard to taxes, it comes down to math. If you need to withdraw from your 401k, crunch the numbers and figure out how you can do that while limiting your tax exposure.
Related reading:
Business Retirement Plan Guide
*Be advised – Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
Every year, more than 30% of people go through the process of taking out a loan for one reason or another. Some do it to pay for college, while others do it to pay off a past-due utility bill.
If you’re thinking about taking out a loan at the moment, you should know what you’re getting yourself into before you do it. Loans can be very useful when you’re responsible with them. But they can also turn into a huge headache if you don’t know what you’re doing when you take one out.
What do Khloe Kardashian and Nick Carter have in common?
Both Khloe, and the youngest member of the Backstreet Boys, Nick Carter, have DUI arrests on their record. While it may be easy for celebrities to recover from a DUI, the majority of Americans find themselves struggling to survive financially.
Have you recently had your driver’s license revoked or suspended and you’re wondering how to go about getting it back?
One of the steps to getting your driving privileges reinstated is to obtain what’s known as an SR-22. This is required to show that you’re being backed up by a legitimate insurance company while on the road despite your past traffic offenses.