The subprime mortgage mess, higher demand for energy products overseas and the weak state of the dollar all contributed heavily to the recent downward volatility in the stock market. If I were retired I might give it a second thought, but I doubt it. I plan on being mostly invested in the stock market right up and even well into retirement. I am not going to get rich quick but slowly over time and there will be bumps in the road, this is one of them. As long as you have a diversified portfolio of the broad stock markets (international and emerging market holdings as well) things will be fine over time.
If you would like to read the best book ever written on the subject, read "A Random Walk Down Wall Street" by Burton G. Malkiel.
I would be remiss to mention that you also need the personal risk management tools in place for your family for your personal financial success to work out regardless of circumstance (life insurance, disability insurance, long-term care, and last but not least personal property coverage)
06 February, 2008
01 February, 2008
How much to save (for retirement)?
The starting place for that question is to look at your annual or monthly income (gross). If you make 120,000 per year combined or single, a good place to start is 10% of your income. Adjustments can be made from that number based upon goals and lifestyle.
Now the question comes in for those of you that have kids, "what about college savings?" Anything above and beyond the 10% may be earmarked for the kids college. Do not reduce retirement savings for the sake of the kids college. I am going to use an anectode here: When you are flying on a commercial airline (any of them) and the flight attendant is covering the oxygen mask issue if the plane suddenly loses altitude... is that little light going off in your head yet? Who does the attendent tell you to put the mask on first? Your child or you?
Well if you panic and try to put the mask on kids face and pass out trying that's not good for anyone is it? It goes on you first so you don't pass out then your children. Same with retirement.
When it comes to college, where there is a will there is a way. Just this week there was an article about Ivy League schools dipping into their large endowements to offset tuition for low and middle class wage earners (sometime middle class is defined as $100,000). The Ivy league pretty much detached from reality, but its not a bad thing in this case.http://finance.yahoo.com/expert/article/generationdebt/64241;_ylt=Anc94pn36aKC9sa226owuoK7YWsA
Now the question comes in for those of you that have kids, "what about college savings?" Anything above and beyond the 10% may be earmarked for the kids college. Do not reduce retirement savings for the sake of the kids college. I am going to use an anectode here: When you are flying on a commercial airline (any of them) and the flight attendant is covering the oxygen mask issue if the plane suddenly loses altitude... is that little light going off in your head yet? Who does the attendent tell you to put the mask on first? Your child or you?
Well if you panic and try to put the mask on kids face and pass out trying that's not good for anyone is it? It goes on you first so you don't pass out then your children. Same with retirement.
When it comes to college, where there is a will there is a way. Just this week there was an article about Ivy League schools dipping into their large endowements to offset tuition for low and middle class wage earners (sometime middle class is defined as $100,000). The Ivy league pretty much detached from reality, but its not a bad thing in this case.http://finance.yahoo.com/expert/article/generationdebt/64241;_ylt=Anc94pn36aKC9sa226owuoK7YWsA
Test blog
This blog will serve to update our family and friends regarding how we are doing, pictures, work etc...
Stephanie is at Jenny Craig in Clifton Park as Manager; she is busy shrinking the size of the populous of upstate New York.
I am at Bouchey Financial Group, Ltd, a fee only financial planning firm and studying for my CFP.
LJ is in his second year at RIT and plays tennis
Courtey is in her senior year at Shen and is still dancing
Conor is in 1st grade, plays indoor soccer and ski's at Willard Mountain
Madison is in Kindergarten and ski's with Conor at Willard
Stephanie is at Jenny Craig in Clifton Park as Manager; she is busy shrinking the size of the populous of upstate New York.
I am at Bouchey Financial Group, Ltd, a fee only financial planning firm and studying for my CFP.
LJ is in his second year at RIT and plays tennis
Courtey is in her senior year at Shen and is still dancing
Conor is in 1st grade, plays indoor soccer and ski's at Willard Mountain
Madison is in Kindergarten and ski's with Conor at Willard
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