The Best Investments For You,The Young Adult
Doing something as simple as saving money in a bank account is what you want to do.
So many people don't even do that,and it can have detrimental results and consequences
in your financial future you don't want.
I know you know this stuff but so many never do it. I personally would rather see
someone be able to make enough money to be able to save 100 Grand in cash in 10
years in a bank account,than putting a lot of money into mutual funds and stocks
and not having control over whether you'll actually come out ahead.
If you do work for a major corporation and they offer a retirement program in which you put 2 percent of your pay into a retirement program,and they match it with 2 percent,use that.
Yes,it's a retirement plan that you have to pay taxes on eventually;but if you sock away
that 2 percent every week you'll be better off.
Example: If you make 1,000 a week after taxes and you take out 2 percent,that's 20 dollars
a week. I know it's a very small amount but it's more than most people put into retirement.
That's a 20 dollar top up from your employer and 160 dollars a month put into your retirment fund.
As well you cut back on the amount of taxes you pay yearly on your income by investing in a government
registered account.
The only thing I don't like is if you take out money from your retirement fund you're taxed. As well
when you do retire you're taxed again until all your money is gone.
As well when you do retire you have to take a certain percentage out every year.
To me it doesn't seem like a great way to invest your money.It saves you taxes for the time being,but in the end you have to pay tax again when you start drawing out that money in your later years.
I suggest better ways to invest your money. Even a bank account is better investment wise even though it makes very little interest wise. You pay no taxes on it,and in Canada you can put 5,500 in a tax free savings account every year. And if you do take all the money out you're not taxed one thin dime.
The tax free savings account is best for people who don't make a lot of money.And if you haven't put money into a tax free savings account in 4 years,the amount you can contribute builds up to 22,000.
And even if you took out all that money it's not taxed at all again.
I personally use the Tax free Savings Account here in Canada. At one time you could put in 10,000 a year, but our federal governent decided to virtually cut it in half.
If the country you live in as a young adult offers a tax free savings account,use it to fuel and build up
your savings for the future.
Investing: A Dirty Word
I know I say you shouldn't invest in the stock market,but if you do invest in companies you understand. Research them thoroughly. Make sure you understand the product or service,and make sure it's a well known company that's on the New York Stock Exchange.
Preferably buy stocks of a company that's a Blue Chip company.Meaning that it is a company that makes a lot of dough and has a healthy balance sheet that has more revenue coming in that stays,than is going out. And, has a good dividend from it's shares every quarter.
Research one or two stocks at the most. Don't go the mutual fund route. Buy small amounts of shares each month and stay in for the long haul.
Use small bits of money you can afford to lose. Remember that?
You are not guaranteed to make money. Learn from top stock pickers like Warren Buffet,Benjamin Graham who was Buffet's mentor when he started investing,and Ray Dalio who owns one of the world's biggest Hedge Funds,and has an all weather investment portfolio tip that surprised me,because he only recommends approximately 25 to 30 percent in stocks,and the rest to be fixed income,precious metals and commodities.
And please make sure you constantly research and educate yourself on what the one or two stocks
are doing.
Learn Things To Be Well Employed:
I realize I'm repeating some of these things,but they need to be repeated so you understand that if you
want a better life you need to invest in yourself. And that means a better paying job. And if you don't
get a better paying job you better make money on the side.
That doesn't mean another job.
Look at the types of jobs that will be in demand in the future.Things such as software development, getting a trade or take a management course.Look at what I do online.There is a big demand for people to make web- sites.
These are things that will be in demand in the future while you make money on the side in a business,and socking away some of your money and dare I say,putting money in the stock market.But please educate yourself constantly if you go into the stock market.
Lastly...
Invest In Relationships:
What is business and even getting a job about?
Yes,it's about relationships,not just about who's the most qualified person to do business with,or get
that job with your company.
If all you do is talk business you'll be doomed!
And don't talk about the economy and how bad it is.
Ask questions about the company and what they do to help the community. As well,and I say it again,to educate yourself on the company you want to work for or do business with.Then come up with questions about the company.
Don't make an interview or a talk about doing business with a company about you.
Find out who you'll be talking to when you have that interview or talk about business,and ask them questions about themselves.
The reason I say you should ask questions and not make the interview about you,,is,Sam Walton who owned Walmart and was one of the wealthiest people in the world 25 years ago--always asked more questions,then he was being asked,and researched companies in his field to find out if they knew something he didn't and could use it to help his company.
And develop relationships with these people before you do business or get that job. Also make the relationships in your own life strong.because if you don't have good relationships yourself,that tends to show up when you do get that job or business with a company.
So make relationships a priority before doing business or getting that job.
Doing something as simple as saving money in a bank account is what you want to do.
So many people don't even do that,and it can have detrimental results and consequences
in your financial future you don't want.
I know you know this stuff but so many never do it. I personally would rather see
someone be able to make enough money to be able to save 100 Grand in cash in 10
years in a bank account,than putting a lot of money into mutual funds and stocks
and not having control over whether you'll actually come out ahead.
If you do work for a major corporation and they offer a retirement program in which you put 2 percent of your pay into a retirement program,and they match it with 2 percent,use that.
Yes,it's a retirement plan that you have to pay taxes on eventually;but if you sock away
that 2 percent every week you'll be better off.
Example: If you make 1,000 a week after taxes and you take out 2 percent,that's 20 dollars
a week. I know it's a very small amount but it's more than most people put into retirement.
That's a 20 dollar top up from your employer and 160 dollars a month put into your retirment fund.
As well you cut back on the amount of taxes you pay yearly on your income by investing in a government
registered account.
The only thing I don't like is if you take out money from your retirement fund you're taxed. As well
when you do retire you're taxed again until all your money is gone.
As well when you do retire you have to take a certain percentage out every year.
To me it doesn't seem like a great way to invest your money.It saves you taxes for the time being,but in the end you have to pay tax again when you start drawing out that money in your later years.
I suggest better ways to invest your money. Even a bank account is better investment wise even though it makes very little interest wise. You pay no taxes on it,and in Canada you can put 5,500 in a tax free savings account every year. And if you do take all the money out you're not taxed one thin dime.
The tax free savings account is best for people who don't make a lot of money.And if you haven't put money into a tax free savings account in 4 years,the amount you can contribute builds up to 22,000.
And even if you took out all that money it's not taxed at all again.
I personally use the Tax free Savings Account here in Canada. At one time you could put in 10,000 a year, but our federal governent decided to virtually cut it in half.
If the country you live in as a young adult offers a tax free savings account,use it to fuel and build up
your savings for the future.
Investing: A Dirty Word
I know I say you shouldn't invest in the stock market,but if you do invest in companies you understand. Research them thoroughly. Make sure you understand the product or service,and make sure it's a well known company that's on the New York Stock Exchange.
Preferably buy stocks of a company that's a Blue Chip company.Meaning that it is a company that makes a lot of dough and has a healthy balance sheet that has more revenue coming in that stays,than is going out. And, has a good dividend from it's shares every quarter.
Research one or two stocks at the most. Don't go the mutual fund route. Buy small amounts of shares each month and stay in for the long haul.
Use small bits of money you can afford to lose. Remember that?
You are not guaranteed to make money. Learn from top stock pickers like Warren Buffet,Benjamin Graham who was Buffet's mentor when he started investing,and Ray Dalio who owns one of the world's biggest Hedge Funds,and has an all weather investment portfolio tip that surprised me,because he only recommends approximately 25 to 30 percent in stocks,and the rest to be fixed income,precious metals and commodities.
And please make sure you constantly research and educate yourself on what the one or two stocks
are doing.
Learn Things To Be Well Employed:
I realize I'm repeating some of these things,but they need to be repeated so you understand that if you
want a better life you need to invest in yourself. And that means a better paying job. And if you don't
get a better paying job you better make money on the side.
That doesn't mean another job.
Look at the types of jobs that will be in demand in the future.Things such as software development, getting a trade or take a management course.Look at what I do online.There is a big demand for people to make web- sites.
These are things that will be in demand in the future while you make money on the side in a business,and socking away some of your money and dare I say,putting money in the stock market.But please educate yourself constantly if you go into the stock market.
Lastly...
Invest In Relationships:
What is business and even getting a job about?
Yes,it's about relationships,not just about who's the most qualified person to do business with,or get
that job with your company.
If all you do is talk business you'll be doomed!
And don't talk about the economy and how bad it is.
Ask questions about the company and what they do to help the community. As well,and I say it again,to educate yourself on the company you want to work for or do business with.Then come up with questions about the company.
Don't make an interview or a talk about doing business with a company about you.
Find out who you'll be talking to when you have that interview or talk about business,and ask them questions about themselves.
The reason I say you should ask questions and not make the interview about you,,is,Sam Walton who owned Walmart and was one of the wealthiest people in the world 25 years ago--always asked more questions,then he was being asked,and researched companies in his field to find out if they knew something he didn't and could use it to help his company.
And develop relationships with these people before you do business or get that job. Also make the relationships in your own life strong.because if you don't have good relationships yourself,that tends to show up when you do get that job or business with a company.
So make relationships a priority before doing business or getting that job.
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