Investing – The Survival Skill of the Modern Man

The average person has a disposable income. Disposable income is the money after paying for basic needs like housing, food, clothing, transportation and entertainment. Notice how our needs have been developed for the needs of prehistory, to include entertainment. Well, I’m realistic. If I had money to spare, do not miss the dark knight, or is missing a great cafe mocha. To ensure our retirement, there must be a limit to how much additional money we spend. If you live check, is required, provided that the rest of your life, you might still work if you are 89 to work. This is a bet, I’m not willing to do so. I had the opportunity to be in bed at the 58th on the contrary, the social security check will not be enough to cover expenses in 2081, since only covers 42% of the average worker. If you dream of living in a malibu mansion and driving a 7 series, it’s better to forget about social security. In fact, social security is no longer as insurance for old age.

Course most of you are thinking about financial literacy and took advantage of the pension plans sponsored by employers, such as 401k and ira. Some have even set up a brokerage account to invest the balance after maxing out retirement accounts. These are all good. But you know how their funds are powerful? Do you know how to pay the cost of loading and administrative charges before you? Do you own apple, since it does become an iphone? Do you google because his colleague was angry about how google has jumped 15% a few months ago? Make no mistake. Apple and google are likely to have a good stock, but if you bought it for the wrong reasons, are not good investments, but speculation only. Many people make the mistake not try to understand their investments. Admittedly, I was one of them. I used a company that offers its employees an ira with pattern matching and job share options. Stock options were granted at $ 16/share. I do not exercise because I had no idea it was a stock option at the moment. I have little money after all expenses, I plan to leave the ira to take advantage of pattern matching takes stock. When my practice, I still do not, in my ira took so used to a 10% penalty. It’s a good thing my tax class was small and the corresponding employer I have ended forever. What bothered me was that I had no idea where my money left as soon as they were in my ira. I was also lucky enough to avoid the exercise of stock options, because two years later, the trading company at $ 0.56/share. It was a revealing experience. I wonder if I kept to myself, the money I worked so hard, I have to learn to invest. It’s crazy to leave the only guarantee for retirement in the hands of people who do not know. About $ 50 000 people a year, approximately u.s. $ 5,000 / Year for disposable income, assuming an effective tax rate of 30% and 60% costs. If you work and save for 50 years continue, they will end up with about $ 603k parties, assuming a 3% interest on your savings. However, the erosion of purchasing power due to inflation combined with tax erases all the gains of their interests and have a haircut of your savings. Of course, many of us already know, therefore, our investments in mutual funds and stocks. Unfortunately, the end of our initiative to invest here. We know that deep hole is left, so jump into the hole on the right can also be an abyss. The vast majority do not even know their savings have fallen every day because they pay more fees than they earn income. Investing is that modern man is chasing cavemen. The key to a comfortable retirement is a wise investment. You need not be a warren buffett to do well in retirement. But is not learning the basics to understand what is the best investment option is for you. Pay an additional administrative fee of 2% with an investment of $ 10,000 may seem like small change. However, he was able to purchase this 2% tax on an investment of $ 10,000 over 50 years, you and your loved one a bentley azure each. Apathy is a price that can not afford to pay. What’s worse is that many of us understand not only treat, leading to mutual funds that invest in it do not even know the name of your fund portfolio managers bet, much less his achievements. Did you miss sweet school finance his life savings to invest?

Then there are those who are adventurous, including myself, who think that somehow gain an innate talent for choosing actions. This group of investors, the biggest threat to be themselves. There are a variety of investment methods of technical analysis investment value. The worst of these is what I call the sound investment. You see, everyone is born with a great virtues – generosity. In fact, this virtue is so powerful that it compels us to share everything with your friends on facebook, flickr photos on our shit itself. Share our hot stock tips is no exception. At some social function, you are sure to hear some advice on the best tracks of the moment. Last summer I noticed about google. Last christmas was apple. Moreover, the prices of these stocks near their peak when they were recommended to me. If I had bought when they recommend, I would have lost some money. Is not a package. But as bad advice. Remember, this is not the fault of my friends who just wanted to share their best investment ideas. They were only trying to help. When I bought the rumor and investment, I have to blame but me. The most important lesson of investing is to understand what you are buying. This is perhaps the lesson that many are willing to learn. If you do not understand what you are buying is not reversed. Speculate. Play. You bet you’ve bought something is going to increase in value. Imagine presented with a sealed box. She and a group of gentlemen are invited to bid on the contents of this box. Welcome to the box, consider how you want but can not open the box. Once the auction ends, the auctioneer, the contents of the box to the winners at the right price is to buy. A gentleman, after looking at the box, the bidding starts at $ 100. The next version, even without even a glance at the box and not ready, the right of the box, the offers of $ 120. Do you offer? If you are scientifically inclined, you can begin production and age of the box, hoping that might give a slight indication of the value of the contents of the box. You can pick up the box to feel the weight. You can shake the box to hear the sound it makes and feel the weight of the contents by moving the box. Once you are satisfied, an offer or if the price is too high, they walk away. This is the kind of skills you need to master the investment. You do not have all the answers. But you have to make a guess about what a company is worth doing. If you have not sealed the boxes you have in your portfolio to discuss? If you do, to sell now. Stop putting yourself about investments. Investment is a survival technique. Go to the library. Buy a book and start reading on their investment. Make sure you know who is managing your money if you have your money in mutual funds. If you are more adventurous and pick your own stocks, make sure you understand the companies they buy. Finally, if you can not bear the number, just put your money in an index fund like vanguard’s low-cost return and enjoy what you like doing best.