Investing Is Not A Choice You either invest or be/stay poor. The fact is if you save $500,000 to $1,000,000 you can retire assuming you are debt free and have a relatively low cost of living. However, most Americans live above their means. Therefore they cannot adequately invest toward retirement. I had a conversation with one of my young In-laws about a week ago in regard to her personal finances. Her company matches her 401K up to 6% and she opted to have most of her money go into her company’s stock. Although I felt that she should be more diversified, where I had a real problem with her behavior was her taking money out. She also mentioned that she did not have enough money to invest as much as she would like and mentioned she considered hiring Merrill Lynch to build her portfolio, but they require at least a $5000 investment to open an account. Here is where it gets good. After our conversation, I walk outside to get into to my 2003, paid for, Volkswagen Jetta and I see a late model BMW SUV! This is where her $5000 Merrill Lynch investment is. Too many Americans invest in pure junk. Yes, a car is junk because it is worthless. If you don’t believe me, try to sell it 10 years from mow. With the 40k to 50k you paid for your car, you could have invested that money into a fast food franchise, stock market or other forms of exotic investments. If your money is not working for you then it is jerking you around. It is jerking you around because you are not controlling it. You have no other choice but to control your money through investments because there is no other way to retire. Unfortunately, life is way too short to go on a 10 to 15 year splurging spree. You are wasting time and will more than likely work a job that you hate for the rest of your natural life. The good thing about having money is that you have choices. You can start your own business doing what you love or you can travel and visit friends. Doing both of the just mentioned is the preferred method, because if you stop working you will rot. My final words are to become debt free; stay debt free and aggressively invest. In order for this to work it must become a habit like brushing your teeth every day.
Posted on: Thu, 19 Sep 2013 12:45:24 +0000
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