Why no one cares what you think about investment plan (and how to stop being so freaking boring) is an important topic everyone who cares about their financial future should be thinking about; and with the recent shutdown of the government putting the so-called ”Obamacare” (Affordable Care Act) law into the spotlight, thinking about retirement is more relevant than ever. It’s easy for you to say that I will never retire! January 22, 2013 but the time will come when you are too old to work, and what then?
However, it should also be noted that extreme retirement is Fool’s Gold! Extreme retirement is a term used by financial gurus and is a technique used to catch up when you have started saving at a later time in your life. With extreme retirement, the point is to save as much of your income as possible so that you can catch up to your financial goals. This is another reason why no one cares what you think about investment plan because no one wants to think about depriving themselves. Besides, how long can you really keep up living an ultra-frugal life? Is the promise of a financially-secure retirement enough to motivate you to live like a pauper for the next twenty years?
This is why my 2013 New Year’s Resolutions update is to study how to become minimum wage millionaire. Believe it or not, it is possible, even when you are earning a minimum wage, to save enough to eventually become a millionaire by creating the right investment plan. More people may begin earning minimum wage under an Obamacare regime since companies may follow the example of Disney and begin offering full-time positions to their part-time employees.
The secret behind how to become a millionaire without having to save too much is called compound interest, and involves rolling over both the principal and the interest of your savings, and then earning interest on that amount. As the amount that you roll over grows and grows, so does the interest that you earn on it. Before you know it, you already have one million dollars in your investment account.
However, to benefit fully from compound interest, you will have to make sure that your savings earns as much interest as possible. Here is another reason why no one cares what you think about investment plan (and how to stop being so freaking boring) because nobody likes math. Putting your money into a regular savings account that pays you just 3% interest is not enough for you meet your savings goal and you will have to earn interest of at least 10% or the average return you get from stocks.
Here are some tips on how you can become a minimum wage millionaire by creating an investment plan:
a. Start by setting a financial goal and then calculate how much you need to save in order to meet it. There are online calculators that you can use to help you make your calculations. You can adjust the various assumptions until you find figures that you feel comfortable with. However, you should not end up with a savings goal that is too low since prices will be much higher in twenty years’ time and you may also need to spend more on health care.
b. Automate your savings. You can arrange with your bank that as soon as your salary is deposited into your account, a certain amount will automatically be deducted and put into your retirement account. This forced savings technique will ensure that you are saving the amount you need without having to deal with the temptation of not saving.
c. Diversify your investments. The best investment plan involves putting your money into a variety of investment vehicles rather than focusing on just one, to get the best returns. Investment gurus advise that for a well-balanced investment portfolio, you should include all five investment classes: US large cap and small cap stocks, international stocks, commodities and real estate investment trusts (REITs).
d. Take control of your own investments. While you may want to leave your investments in the hands of your investment manager, you should still oversee your investments to see how they are doing and to adjust them periodically. Once you’ve created your investment portfolio, you will also have to periodically review your investment to ensure you are getting the best returns by periodically adjusting it, selling some assets and adding new ones or increasing/decreasing your holdings in others.
The main reason why no one cares about your investment plan is that people think the subject of personal finances is a dry subject. They would rather talk about the Michael Jackson verdict. But thinking about an investment plan for retirement is something that you have to think about now; otherwise, in the future, you might end up spending your old age destitute.
About the Author:
About the Author: Bill Achola has asked repeatedly to be called ”His Royal Awesomeness” but no one listens to him. So, he settles for CEO of EBusiness Reviews, LLC. Poor man. He is the author of www.eBusinessReviews.net a practical blog that helps bloggers and investors to make wise decision before they invest.
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But thinking about an investment plan for retirement is something that you have to think about now; otherwise, in the future, you might end up spending your old age destitute.
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