Investing

retirement signWhile most people only dream about retiring at 50, there are people out there that turn this dream into a reality. What is their secret? Did they win the lottery? Rob an armored car? Print counterfeit money? While there may be a few people that did do those things, the reality is that most retire at 50 by following 3 simple pieces of advice.

How To Retire At 50 In 3 Steps

Step 1: Save More – A Lot More

Conventional thinking says that if you want to retire by 65, you need to put away about 10-15% of your income. If you want to retire at 50, you need to save more than this, to the tune of 40% or more. Why so much? First, you are going to need money to live on for a longer period of time while not earning an income. Secondly, you have to make up for the lost years that you won’t be contributing or saving to a retirement plan while you work – namely those last 15 years or so. With the power of compound interest, those last 15 years of saving really add up.

So how do you save 40% or more of your income? There are a few steps you can take:

Focus mainly on windfalls: If you get a tax refund, you need to invest all of it. Same goes for any bonuses you get at work. These chunks of money really make a huge difference in the long run. For example, if you are 35 and receive a $3,000 tax refund each year, investing that and earning 8% annually brings the investment value to close to $88,000 when you are 50.

If you get a bonus each year from work for $2,000 and invest that every year for 15 years earning you 8% annually, you have another $58,000. That’s close to $150,000 you have without really changing your lifestyle!
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round table

The Round Table – September 28, 2014

Welcome to The Round Table! Lots of things happening in my world right now. I’ll go into detail on many of them in an upcoming post, but for now let’s just say my awesome experience as a landlord just hit a big bump in the road. No big worries though at this point as I have options. In addition to that, I spent some quality time doing house projects. I got a good amount of things updated/remodeled, but the list […]Read the full article...

etf or mutual fund

Investing Made Simple: Your Guide to ETF or Mutual Fund

I recently received a question from a reader about ETFs and mutual funds. The reader read my mutual fund basics post along with what is an ETF post and wanted to know which one is a better investment. This question is almost impossible for me to answer, because it all comes down to you, the individual investor. You have to decide which product makes the most sense for you and your investment plan. To help this reader and others, I […]Read the full article...

different types of investors

Are You A Celebrity, A Gambler Or A Straight Arrow?

When it comes to investing, everyone has their own goals and plans. Some may be investing for retirement, while others are using their investments for income. Whatever the case may be, each investor is different. This isn’t a surprise since each one of us are unique individuals. But knowing what type of investor you are can make you become a better investor. See which type of investor you identify with most below. Broad Classifications of Different Types of Investors The […]Read the full article...

fall trees

Carnival of MoneyPros – Feels Like Fall Edition

Welcome to this week’s edition of the Carnival of MoneyPros! This week’s edition is called ‘Feels Like Fall’ because fall is definitely in the air here in the Northeast. Fall is my favorite season and I love the cool, crisp nights that it brings. It’s also a smart time to do any last minute home projects outside before the weather turns too cold. I’m currently working on a host of household projects as we speak. But that that said, during […]Read the full article...

scottrade review

My Scottrade Review: One Of The Best Online Brokers

When I first started investing way back in the late 1990’s, there weren’t many options for me to choose from when it came to brokers. The world of online brokers was still in its infancy. I had to resort to a brick-and-mortar discount broker that charged me about $30 to place a trade. We have come a very long way. Now the internet is full of various online broker options for you to choose from. The question becomes, which one […]Read the full article...

books

Financial Education Starts With You – ebook Giveaway

Are you someone looking to get ahead financially? Do you want to learn how to invest or pay off debt? Maybe learn new ways to save money? Maybe you want to know how to live overseas or just live a life where money is never an issue? Whatever you financial goals and dreams are, they all begin with you. You need to take the time to educate yourself to have a strong financial foundation. After all, nothing great can be […]Read the full article...

what does etf mean

What Does ETF Mean?

I’ve talked in depth about mutual funds on this blog – case in point is the mutual fund basics post a few weeks ago. But what I haven’t talked to you about are exchange traded funds or ETFs. Exchange traded funds have grown in popularity over the past few years. This post will walk you through what they are and why you should consider investing in them. What Is An ETF? In a broad sense, an ETF is a hybrid […]Read the full article...

get rich quick schemes

Get Rich Quick Schemes – Are Any Legit?

We all want to get rich quick. The thought of going to bed poor and waking up the next morning filthy rich has intrigued man since the beginning of time. The idea of instant riches has become even more profound recently with the various ways to make money and society’s focus on short-term gratification. As a result of this, get rich quick schemes have become more numerous. The question is, are there any legit get rich quick schemes out there? […]Read the full article...

round table

The Round Table – September 7, 2014

It’s football time!!! So excited to have football back. I love watching the games on Sundays and just hanging out with friends and family watching. I’m still fairly busy as I pointed out in my end of summer update post. I am checking things off my list however and slowly getting things to a more manageable level. I am also gearing up for my house project event I touched on in my update post above. Of course, I did have […]Read the full article...