Single Adult -- get a job and mentor, create a vision board, new car, start life and disability insurance, start IRA or business, establish credit rating, complete education in area of interests, start emergency savings fund, hobby, social activities ....and create a sample budget
Get a Job, Create a Budget and Start Savings
Investment idea (20s): invest in growth stocks or S&P500/DJIA index funds 90%, 10% cash
Home monthly payment -- 30% take-home pay Car monthly payment -- 15% take-home pay
Young Married – create a vision board, get a marriage/career mentor, small house, condo, adequate flood, life and health insurance, start IRA, bigger car, emergency savings fund ....and create a sample budget
Start Savings and Purchase Disability and Life Insurance
Investment idea (30s): cash 10%, small business or rental property 20%, 70% growth stocks or index funds
Parenthood – education fund for kids, larger home, emergency fund, day care, vacations, IRA or small business ownership
Plan for Kids College and Your Retirement
Investment idea (40s): cash 10%, small business or rental property 30%, 60% growth stocks or index funds
Parent Older Kids – make plans for retirement, disburse education funds, may take care of parents, kids activities, a major illness (disability)
Financially Squeezed - Juggling parents aging, kids, bad health and career
Investment idea (50s): cash 10%, small business or rental property 40%, 50% growth stocks or index funds
Empty Nest - smaller house(paid off), kids gone, pursue dreams, roll IRA into Fixed Annuity
Pay for kids college, stuck in dead end jobs
Investment idea (60s +): cash 15%, small business or property 50%, 35% growth stocks or index funds
Retirement - Fixed Annuity (Secure Income & no debt), travel, volunteer to legacy organizations
Living in Retirement
Investment idea:(70s+): cash 15%, fixed income from selling small business or rental property 70%, 15% growth stocks or index funds
Emergencies -- Unexpected financial or medical tragedy or disaster Local Social Services
Tip: 3 to 6 months of savings in cash, helps to pay for unexpected expenses (repairs, etc)
A. Save $5 a day for 5 years to build a 3 to 6 months reserve...in a savings account, you 'spend and replace' funds in this account as needed for 'unexpected expenses'
1. Purchasing home warranties for major appliances may reduce cost of repairs
2. Purchasing warranties on major car parts may reduce of repairs
Burial - Life Insurance cover expenses left behind, try to leave more than just your last name behind
Final financial wisdom: Create a will to distribute your legacy to the causes and people you love
Use coupons to 'stretch your money farther' in the month. coupons
Always look for deep discounts to get what you want......there's always a 'sale' somewhere for what you want.
Make it a goal to be free of debt by the time you expect to retire. Choose a home loan, vehicle loans that you payoff during your working years. If you are worried about bills, you can’t enjoy retirement, by doing what you and only you want to ....whatever that is!
Eliminating Household Debts
Putting money in 401K at work.....Warren Buffet states, 'Put the money in a low-cost index fund and forget moving it around' ...the return is greater and the fees are less over time(you make more money)
Put $15 - $50 weekly into a 401K, invested into S&P index fund (10% interest), from age 20 - 65, may allow you to have $1 million dollars in retirement. If you change jobs, a rollover IRA will allow you to do the samething. Of course, if your company matches your money, take advantage of that increase in deposits, as well.
Broke-to-Better blogs, Nomopofolks Association, Dallas, Texas