101 Investing Tips
17) Save more
This dovetails with “Start Early” An extra $50 per month is worth $132,000 at retirement. Who can not give up a cup of coffee per day.
18) When planning for long-term goals, assume that your overall portfolio will earn 5% to 6% a year.
Every once in a while we all have to take a reality check. You hear about making 10 to 20% a year. What people want to do is overlook is the drawdowns (losses). The other factor is taxes. For every gain there is an offsetting tax. History has the stock market averaging 9% over long periods of time. Subtract a 20% tax and you are left with 7.2%. There is also the uninvested cash or interest bearing accounts. These all make up your “Portfolio”. Try for more but have realistic expectations
17) Save more
This dovetails with “Start Early” An extra $50 per month is worth $132,000 at retirement. Who can not give up a cup of coffee per day.
18) When planning for long-term goals, assume that your overall portfolio will earn 5% to 6% a year.
Every once in a while we all have to take a reality check. You hear about making 10 to 20% a year. What people want to do is overlook is the drawdowns (losses). The other factor is taxes. For every gain there is an offsetting tax. History has the stock market averaging 9% over long periods of time. Subtract a 20% tax and you are left with 7.2%. There is also the uninvested cash or interest bearing accounts. These all make up your “Portfolio”. Try for more but have realistic expectations
posted by Chip at 5:02 PM
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