There are different tips and tricks to saving money, but sometimes it’s simple. Paying down high-interest debt such as credit cards will help you save money. Everyone also needs an emergency fund because you always have unforeseen expenses, Most advisors recommend an emergency fund equal to three to six months’ worth of your expenses, depending on the volatility of your job. Ty J. Young Wealth Management recommends that you max out your tax-advantage accounts like 401(k)s, IRAs, and 529. Read this article on what to do with savings, https://www.businessinsider.com/personal-finance/what-to-do-with-savings. Or check out our three step guide to beating financial stress https://www.tyjyoung.com/2020/07/28/the-ultimate-3-step-guide-to-beating-financial-stress/.
Investing your money in your 20s means you’re getting a head start of most people. Get help managing your money from experts who can help guide you to make the right decisions. For example, you may be able to take advantage of employee benefits such as 401(k) and matching benefits. If a 401(k) isn’t an option, see if you meet the income requirements for a Roth IRA. As time goes on, you want to incrementally raise your savings rate. Check out Ty J. Young’s how-to ensure your retirement goals as a 20 something https://www.tyjyoung.com/2020/10/20/tys-how-to-how-to-ensure-your-retirement-goals-as-a-20-something/ !
Real estate can generate passive ongoing income and can be good long-term investment if the value increases over time. However, you will need to put down a significant amount of money upfront in order to invest in real estate. Check out this article on how to successfully invest in real estate. https://www.thebalance.com/is-real-estate-a-good-investment-2386365.
Middle class homes make up a large portion of America and there’s a way to help protect your nest egg. Adjusting your lifestyle to your income level by setting realistic financial goals is a good first step. Then make a plan to set aside money for investment. It seems simple, but saving your monthly income and investing regularly makes a world of difference. Since taxes absorb a significant portion of income, you want to strategize on effective tax planning. Avoid buying depreciating assets, in other words, spend smartly. Learn more about financial tips for the middle class in this article https://tinyurl.com/yyqyg9c7.
Starting to invest your assets is always exciting. The best way to begin is deciding how much you want to invest and understanding your investment options. These may include stocks, bonds, guaranteed insurance contracts, mutual funds, and exchange-traded funds. Then, you want to pick an investment strategy that best fits you. Check out this article https://www.nerdwallet.com/article/investing/how-to-start-investing on how to start investing. If you want to learn how to invest like the wealthy, read our article here https://www.tyjyoung.com/2020/09/22/how-to-invest-like-the-wealthy/ to learn more tips from our top financial advisors.
Credentials are a good starting point, and the advisor’s experience is often equally as important. You should trust and respect your financial advisor. Good advisors listen to your needs, goals, and concerns. You can research the company reviews to see what customers are saying about the financial advisor. Word of mouth and online recommendations are useful tools as you determine whether or not the company or advisory is suitable for you. To learn more about choosing a financial advisor, check out this article about Ty J. Young Wealth Management https://www.tyjyoung.com/2020/11/23/meet-our-team/.
If you have a 401k available to you, utilize it for tax-smart efficiency. Employers often match a portion of your contribution to 401k, making them even more attractive. If you’re self-employed, you should fund your SEP IRA first. In general, look at tax-smart ways to invest your money. But taxes should be a secondary consideration to economic decisions.
AUM generally refers to the securities that a firm manages for a fee. Total assets can also include more than AUM, including cash, CD’s, Guaranteed Insurance Contracts, annuities, and the cash value of insurance policies.
Yes and no. While some annuities may have high fees, the best annuities do not charge annual fees. To learn more about annuity myths, read this post by our top financial advisors on common misunderstandings of annuities
Yes. However, your investment tools depend on your strategy. Bonds are a more conservative investment strategy and they historically have lower returns than stocks and less risk. However, they are still a risk-associated investment as bonds can and often lose money. If you’re looking for an asset group that makes money in the good times but also does not lose money in a down market, you should also consider accumulation-focused, fixed indexed annuities as an alternative to bonds. Fixed indexed annuities guarantee that you won’t lose money due to stock market fluctuations. And, the right annuity can also provide you a reasonable rate of return with no annual fees.
Yes. The most astute investors often use benchmarks, including ETFs, to gauge the performance of their other investments.
Typically, wealthy people mitigate risk very well. While the average person might believe you must take more risk for more reward, the wealthy understand that you must be more strategic for more reward. The wealthy often focus more on the return of their money, rather than the return on their money, as they strongly dislike losing money. Learn more about how to invest like the wealthy in this article with tips from Ty. J. Young Wealth Management.
Just like we hire doctors to guide our health, everyone needs a financial advisor to guide our financial strategies. However, many top financial advisors have minimums, so consider creating a budget and get disciplined about saving $10K to invest, and then find a financial advisor to guide your financial strategies.
Yes, billionaires often have a team of financial planners and financial advisors. The more money an investor has, the bigger the need and appreciation for a top financial planning firm or wealth management team. A top financial advisor can help guide people away from misguided decisions for wealth management. Learn more about how to invest like the wealthy in this How-To Guide from Ty J. Young.
Should you make a time commitment of eight, 10 or 12 years? It depends on your own individual situation. If you’re going to need the money a year from now, then obviously no. However, if you’re not going to use the money, or if you’re not going to use more than 10% per year, many people like to go a little bit longer. A longer time period is often accompanied with a bonus the very first day. If you will go eight years right now, you can get a 5% bonus. If you opt for 14, 15, or 16 years, some of those are paying 10% bonuses right now. So if you’re not going to use the money, a longer time commitment may not be a bad idea. Let’s say you put in $100,000, and you get a 10% bonus the first day. Now your account value is $110,000. If you die six months later, your beneficiary gets $110,000 paid to him or her in a lump sum with no waiting. That 16 years is for you while you’re living—not for your beneficiary once you’re gone. Your beneficiary can get the money and do anything he or she wants to with it without penalty. It is not a life insurance policy, but it is kind of like having one if you die prematurely.
There are three ways to have your money completely protected against losses. The first is FDIC insurance. In a one-year CD right now, the rate of return is going be about 1%, which is not acceptable to most people. The second way is treasury bonds. If you buy a 10-year treasury right now, you will get about a 2% rate of return. The third way to have your money completely protected against losses is with a guaranteed insurance contract. The best guaranteed insurance contracts historically average about a 6 to 8% rate of return. A good guaranteed insurance contract allows you to go up with the market, lock in your gains, and when the market goes down, you don’t lose anything. You do receive compound interest, and there are no fees.
The reason people decide to put an annuity inside an IRA account is simple… the benefits it affords you. You choose the investment for your IRA based on the benefits it provides you. You can put any investments you want inside an IRA. For an index annuity, the benefits you receive are tailored towards your IRA: safety of principal and growth. That’s what most people want.