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Once you have completed Level I (Tackle Bad Debt) in the game of Financial Freedom, move on to Level II – Retirement Planning. There are a number of things to consider when designing your pension plan successfully. At this stage we only cover the accumulation portion of pension planning, not the distribution phase (which happens when you retire). When creating your retirement plan, start with three main factors: Determine your goals, the number of years remaining until retirement, and your risk tolerance. The goal of this initial process is to establish the average glide path of how contributions and appreciation add up to enough money that you can convert into income upon retirement.

When I opened a retirement account it was 1998 and I believe Roth IRAs had only just been formed. So I went through the whole process with a financial advisor who was also my neighbor. I wanted to retire at 65, I wanted $ 3 million, and I was high risk tolerance. I’ve always assumed that any chance of big win requires high risk. I don’t think so anymore! When the “dotcom” bubble burst in 2000, I had a new sense of my “high risk tolerance”. After paying all of the brokerage fees, I’ve lost about 50% of my investment this year. Because of this loss, I was forced to re-evaluate, which meant high risk tolerance. Since then, I’ve learned that you don’t have to take high risk to get good, consistent returns. In fact, it’s probably better not to.

Many people don’t seem to get satisfactory answers to these 3 planning questions. So I would say that the main point in determining your goal, time horizon, and risk tolerance is determining the asset allocation of your portfolio. Your asset allocation is the percentage mix of different asset classes (like stocks, bonds, and real estate) that you target. Higher risk tolerances enable higher volatility. Since stocks are more volatile than real estate and bonds, a higher risk tolerance would build a portfolio with a higher equity component. Lower risk tolerances are intended to reduce volatility and are therefore aimed at more fixed-income securities in the asset allocation.

How does asset allocation work? It works two ways. One option is diversification. Because asset classes react differently to the changing environment, diversification over time leads to better results with less volatility. Why this? All investments are influenced by 4 main factors:

1) Raw material prices as input prices, especially oil,

2) Interest rates as borrowing costs,

3) Inflation (or deflation) as a combination of federal policy, monetary policy and general pricing, and finally

4) the economy in terms of growth (business and economy).

Investments are influenced by the nominal numbers for each of these 4 factors as well as the rate of change. For example, you can have low interest rates, but if those interest rates suddenly rise rapidly, the market will devalue that change. The rate of change can have a major impact on market pricing and volatility. Remember, the ultimate goal is that the market is a future discount to profits, and any big change in any of these four areas will have a big impact on the calculation.

The second way that asset allocation works is through “realignment”. The realignment enables a systematic process of buying low and selling high. If you rebalance your wealth at set times during the year, such as twice a year, you can sell the asset classes that have grown above their target allocation percentage and buy asset classes that have fallen below their target asset allocation. This provides a process that automatically and systematically buys low and sells high.

Why are we talking about this now at Stage II – Establishing Retirement? I recommend finding a service that will do all of this for you as cheaply as possible. I recommend checking out the Robo-Advisors – WealthFront, Betterment, or Personal Capital. These companies guide you through the planning questions, set a risk tolerance number from 1.0 to 10.0, and then set up an asset mix based on your profile. They allow you to set up automatic posts and they will do the redistribution on a set schedule. The important point is to have all of this in an automated system so you don’t even have to think about it. You can also buy the index ETFs directly and free of charge from a broker like TDAmeritrade. They offer 100 free index ETFs. Note, however, that ETFs are not as automated as the robo-advisors. I would start with a robo advisor account and later tweak and improve it as you start to improve in investment skills.

So, to get to Level II, you need to set up a retirement account and automatically deposit 10% of your income. In general, I’d stay away from the company’s 401k plans unless they offer a match. If they offer a match then it’s free money and you can start Level II by setting up your 401k, but only up to what the company can match. Why? Because 401k plans have a lot of hidden fees and are quite expensive to manage. Most of the people who get rich in the 401k country are the providers, not the participants.

Also, how do you know you are on the right path to retirement? I would use these very general statements. You want “four digits” in your 20s so one day you can hit “five digits” in your 30s. And you do this so that sometime in your 40s you can hit “six figures”. If you do, you’ll want to go into “seven digits” sometime in your 50s. And if you want extra credit, you’ll hit “eight digits” sometime in your 60s or 70s. If you are 27 years old and have $ 4,000 in your retirement account, you are on the right track. If you are 38 years old and have $ 55,000 in your retirement account, you are generally on the right track. If you are 44 years old and have $ 145,000 retired, you are on the right track.

The main point here is that you need to have a “four number” portfolio before you have a “five number” portfolio and so on. And that a bond portfolio uses the power of compound interest and a long time horizon to generate high returns. This is a very general rule that does not apply to everyone. This also does not allow skipping the “Objectives” section when creating a risk and investment profile. It should be used as a very general rule of thumb. I’ll give another rule of thumb in the following articles. For now, I hope you found this point somewhat helpful and enlightening in order to win at Level II of the game of financial freedom – setting up a retirement account and investing process.

So are you ready to complete Level II – Setting Up a Retirement Account – and save 10 percent per year? You could do the entire Stage II in one step – set up a Wealthfront account and set up an automatic monthly contribution to a traditional or Roth IRA. OR you could set up your 401k in your company as long as there is a generous matching policy in place. OR you could set up a TDAmeritrade account, set up a monthly auto contribution, and invest with their free indexed ETFs. All of these approaches put you on your way to retirement planning. You can improve it later. The goal is to just start and then do the administration automatically.

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Source by Jake Ryan

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Whether it’s the idea of ​​cryptocurrencies themselves or the diversification of their portfolio, people from all walks of life are investing in digital currencies. If you are new to the concept and are wondering what is going on, here are some basic concepts and considerations for investing in cryptocurrencies.

What cryptocurrencies are there and how do I buy them?

With a market capitalization of around $ 278 billion, Bitcoin is the most established cryptocurrency. Ethereum ranks second with a market capitalization of over $ 74 billion. In addition to these two currencies, there are a number of other options, including Ripple ($ 28 billion), Litecoin ($ 17 billion), and MIOTA ($ 13 billion).

As the first market participant, there are many exchanges for Bitcoin trading around the world. BitStamp and Coinbase are two well-known exchanges based in the United States. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies besides Bitcoin, then you can find all digital currencies in one place on a crypto marketplace. Here is a list of the exchanges according to their 24-hour trading volume.

What options do I have to keep my money?

Another important aspect is the storage of the coins. One option, of course, is to save it on the exchange where you buy it. However, you need to be careful when choosing the exchange. The popularity of digital currencies has meant that many new, unknown exchanges have popped up everywhere. Take the time to do your due diligence so you can avoid the scammers.

Another option you have with cryptocurrencies is that you can save them yourself. One of the safest ways to keep your investment safe is with hardware wallets. Companies like Ledger also allow you to store bitcoins and several other digital currencies.

How is the market and how can I find out more about it?

The cryptocurrency market fluctuates a lot. The volatility of the market makes it more suitable for a long term game.

There are many established news sites reporting on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. In addition to these sites, there are also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.

Digital currencies aim to disrupt the traditional currency and commodity market. While these currencies still have a long way to go, the success of Bitcoins and Ethereum has proven that there is real interest in the concept. Understanding the basics of cryptocurrency investing will help you go in the right direction.

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Source by Sal J

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Day trading can be an exciting way to make money. But it’s more challenging than most beginners think. Here are some trading tips that can help both the new trader and the advanced trader achieve your goals faster.

First: Be careful not to act too much. Most of the time the market is a random walk – which means it moves for no rhyme or reason. Behind these unpredictable moves are amateur traders taking small positions in the market.

These amateurs have no control over the long-term movement of the market. The professionals, with their large volume and willingness to hold positions longer, are the ones who create sustained movements in the market that can generate significant profits.

Many people are drawn to day trading because of the excitement of the business and the potential for big, quick wins. This attitude makes the trader fail. Day trading doesn’t have the hectic energy of a video game. Most successful day traders sit on the sidelines for a long time, simply waiting for a high probability setup to occur. The professionals trade much less than the amateurs think.

Second: The trend is your friend … sometimes.

The truth is that the trend is fair weather buddy!

It’s your friend from the start. But the trends are running out of breath.

Hence, when you can put statistics on your side, there are 2 opportunities to act:

When a new trend is just beginning.

When a trend has taken its course.

If you only trade at these 2 times, you can put the statistics of the “edge” of the bell curve on your side. When you are in the middle of a trend, you are firmly in the middle of the bell curve where anything can happen.

third: Join Free Trading Rooms for Day Trading Tips, But Do Just The Opposite Of What You Hear!

I have participated in many chat rooms over the years and have benefited tremendously from them. But the benefit did not come from listening to Teacher. It came from watching the participants’ comments communicating what they were doing in the market at any given time.

Most of the time, they were completely wrong in their approach.

They reveal the spirit of unprofitable retailers. It is almost scary how the amateurs think similarly when trading in the markets. If you listen to them in the trading rooms long enough, you will notice the patterns of the things they do all the time. Do the opposite and win.

For example, one of the most common problems faced by amateur traders is resisting the urge to fight the trend. You will often hear comments like, “The market cannot go higher.” “This market just has to turn around now.” “The market is now definitely overwhelmed.”

It is absolutely amazing to see how amateurs habitually go against the trend to find ups and downs. You are constantly looking for a turnaround in the market. As always, you can profit tremendously by taking the other side of your trades.

Day trading can be extremely rewarding, but to be successful you need to stand out from the crowd and avoid the herd instinct that drives so many. These 3-day trading tips can help you belong to the minority that is successful.

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Source by Dr. Barry Burns

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Switching to a vegan diet can be both discouraging still exciting at the same time. The vegan beginner often has many questions or uncertainties about this lifestyle that he is looking for answers to. Below is a list of 10 helpful tips for newbies to the vegan diet that will focus on how to get into a vegan diet smoothly and how to make the transition to a vegan diet as easy and stress-free as possible.

1. Research & collect information

Before making any lifestyle change, it is always a good idea to do so do a lot of research in advance. That way you know exactly what to expect. You need to gather information about what vegans are to do and Not eat, what are the benefits of being vegan, what obstacles and challenges vegans face, etc. You will thank yourself later for your thorough research.

2. What to do? you Do you want to reach?

For vegan beginners I always advise to write exactly on paper what they want to achieve with the vegan lifestyle. Be it weight loss, to clarify skin problems (e.g. acne, psoriasis, eczema), to gain inner peace, reduce allergies, reverse chronic diseases, better concentrate, save the planet, animal rights, etc. Whatever Your Reasons for switching to a vegan diet should be noted down on paper. Stick them where you can see them every day e.g. B. on the refrigerator.

3. Find good recipes

It is imperative to find and collect a few good vegan recipes as you will be cooking a lot different from now on. You need to find some quick and easy recipes for those times when you are too tired or too busy to cook something fancy. Also collect a wide variety of vegan recipes including vegan breakfast recipes, lunches, dinners, snacks, cakes, slices, desserts, etc. Find your recipes online, buy a vegan recipe e-book – you choose, just make sure that you have it in your vegan recipe folder well prepared for the start of your new vegan lifestyle.

4th Let family and friends know

Let your loved ones know once you’ve decided to go vegan. So make sure the food is not a problem when you visit or when they visit you as they have already been briefed on your new vegan diet.

5. Be prepared for food cravings

When you stop eating certain foods, you will inevitably experience food cravings from time to time. Be prepared for this and make sure you have some healthy snacks or frozen baking readily available so you don’t give in. You can also find some recipes for “vegan clones ” Your favorite dishes and snacks (note: professional vegan chefs have written a number of recipe e-books to satisfy your cravings).

6th Know your vegan food brands

Nowadays, supermarkets and health food stores are tailored to the needs of vegans, so you should be able to easily find meat- and dairy-free snacks and foods like vegan cheese, tofu, vegan chocolate, health bars, “bacon” and muesli. Try them all out and get to know your favorites.

7th Stay motivated online

There are many online vegan support groups, chat rooms, and blogs that you can visit and interact with other vegans online. This will help you stay motivated and encouraged, and will also help you realize that you are not the only vegan on the planet!

8th. Enjoy your fruit and vegetable shopping

You will eat a lot more fresh produce now that you are vegan. Find fruit and vegetable markets or grocery stores that deliver quality to produce at a reasonable price. Remember that supermarkets are often more expensive. Enjoy the selection of your fresh products and make your fruit and vegetable shopping a relaxing experience!

9. Bake your own healthy treats and snacks

Since you have to limit yourself to buying goodies and sweets in cafes and restaurants, bake your own vegan goodies like brownies, cakes, slices, and muffins. Baking and entire batch every week and freeze them in single servings whenever you need a treat. Again, you can find a plethora of vegan baking recipes online either on websites, on blogs, or in recipe e-books.

10. Don’t give up so easily

The transition to a vegan lifestyle is often the most difficult at the beginning. After a while it gets easier and easier, until it becomes second nature to you. So for beginners or those relatively new to the vegan lifestyle, my advice is: Not give up immediately, but to suit your new lifestyle fair chance. Chances are that after a few months you will be very grateful that you never gave up! The rewards and benefits of this lifestyle always predominate all the challenges you may face from time to time!

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Source by Loren Antonios

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Real estate investments have become popular today because they have TV infomercials and traveling seminar circles. But real estate investments haven’t always been that popular.

In the 1960s, William Nickerson wrote, “How I Made $ 1,000 Three Million Homes” and “How to Make a Fortune Today from Scratch”. It was one of the first real estate investment books to attract national attention. A little later, Al Lowry wrote “How Investing in Real Estate Can Make You Financially Independent”. Al Lowry could be described as the “father of modern real estate seminars” because he was the first to hold seminars because of his book sales.

But it was Mark Haroldsen who took the real estate investment book / seminar boost to the next level. Haroldsen wrote, “How to awaken the financial genius in you.” If you were into real estate investing at the time, remember the newspaper and magazine ads that featured a picture of the polite and bald-headed Mark leaning against the hood of his Mercedes. The picture appeared in full-page advertisements throughout major publications. And when Mark started selling his books, he was running real estate investing seminars. I had lunch with Mark and Al Lowry as they exchanged stories about the commercial flashes that made them nationally famous for their property investing skills. Mark later wrote “The Courage To Be Rich” and “Tax Free”.

But it was Robert Allen who benefited from the previous work done by Lowry and Haroldsen. Robert Allen was reportedly paid a $ 1 million upfront payment for his bestselling book “Nothing Down,” a compilation of 50 cash-free home buying techniques. Robert had learned these techniques from years of experience with a commercial real estate company. He later wrote “Creating Wealth” and “Getting Started in Real Estate Investing”. The Robert Allen Real Estate Investing Seminars became a phenomenal marketing bonanza. Congresses were held in major cities across the country such as Orlando, LA, Dallas, Chicago, and Atlanta. The authors of various real estate investment techniques spoke at these seminars, but their talk focused on selling packages of real estate investment materials that they had put up for sale. Millions of dollars in real estate investment materials were sold at these three day conventions. In the early to mid-1980s, the craze for conventions heralded what has since been known as “The Nothing Down Real Estate Movement”.

I keep all of these books in my personal library, and you can probably still find them in your public library and bookstores. There is a lot of great information in these books that you can get very knowledgeable even if some of the ideas are out of date.

We are now presented with a variety of ways in which one can make money in real estate by investing in TV commercials, books, and seminars. Which is the best? Who can say that? Real estate investments are learned through trial and error. Real estate investment skills and techniques are acquired through practice. I don’t think anyone can dogmatically recommend a technique that is best for another person. Every real estate investor has unique needs and is in a unique situation. The goals of real estate investments are different.

However, if you are limited in real estate investment in education and need a quick return on investment, cheap home renovation is an ideal place to start. Real estate investments in renovation properties generate quick, profitable, low risk dollars.

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Source by Dr.Phil Speer