Thetarget-datefundsin401(k)aregoodchoisesforfirst-timeinvestorsorforsomeonetoobusytomanagetheirretirementaccounts.Theyhaveabalancedapproachtotheretirementages.Insteadofdoingtheassetallocationyourself,thetarget-datefundswilldothatforyou.
Youjustneedtoselectyourretirementyear.Thefundswillrebalancebetweenequityandbondmarketsbasedonyourretirementyear.Forexample:ifyouareinyour30s,thetarget-datefundw...[
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Duringyourworkingyears,youareturningyourincometoasset.Duringyourretirementyears,youwillusetheassettogeneratetheincome.
Ifyouaremaking100kannually,generallyspeaking,youwillneed70%to80%ofyourcurrentincomeduringyourretirementyears.Basedon75%,youneed75kretirementincomeannuallytomaintainyourlifestyle.Toproduce75kretirementincome,youwillneed$1.875masset,notincludingyourprimaryresidence.Thisisbasedon4...[
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YouhavetohaveanearnedincomebeforeyoucancontributetoanIRA.Nonearnedtaxableincomecannotbeusedforthis,likerentalincome,interestordividend,etc.
RothIRA:
Contribution:aftertaxmoney.
Contributionlimit:$6,000($7,000ifyou'reage50orolder)in2021
Withdrawal:aftertheageof59.5,nopenalty.NotaxifyoufollowtherulesandnowithdrawallimitiftheRothIRAaccounthasbeenopenforatleast5years.
TheIRSlinkfor...[
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Ialwayskeepmyrentalpropertiesinaverygoodshapeandtreatthepropertieslikemyownresidence.Iusethecreditscoresandworkinghistorytodeterminewhetherornottotaketherenters.Ialwaysbelievethattherenterswilltreatyourpropertiesbetterifyoukeepupthemaintenanceonyourproperties,andtreatyourtenantswithrespect.
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FederalReserveOpenMarketCommitteeofFederalReserveBankraisesandcutstheFederalFundrateswhichbankschargeeachotherforborrowingmoney.
TheinterestrateforsavingsaccountsisbasedbyFederalFundratewhichisashort-termrate.AsofMarch1st,2021,FedFundrateisat0.25%,Yoursavingsaccountinterestratedefinitelywillbelowerthan0.25%
ThemortgageratesarebasedonUStreasury10yearsbondratewhichisalong-termrate.AsofNovenber...[
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Ifyouhavesteadyrentalincomegainyearoveryearfromyourrentalproperties,yourmightwanttothinkaboutreducingtherentalincomegain.
Youcanborrowtheequityfromtherentalstobuyanotherrentalpropertyortoupgradeyourprimaryresidence,ortopaydownthemortgageonyourprimaryresidence.
Thisway,yourrentalgainwillbegone,sodoesthetax.Inthemeantime,youareexpandingyourrentalbusinessbyacquiringmorepropertiesoryouarecumulat...[
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Ifyouarelookingforastockpriceforaparticulardate,internetwillbeaplaceoryourlocalmainlibruary.GettheaccessofhistoricalcopiesofWallStreetJournalthroughthelibruarydatabase,orsomeotherpublication,likeInverstor'sBusinessDaily,ormorelistedbelow.
DailyStockPriceRecordpublishedbyStandard&Poor'sisavailableinboundvolumesatthemainLibrary.Itcontainsdailypriceinformation:
NewYorkStockExchange...[
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Itisveryimportantforanyinvestorstoconsiderassetallocation.Fixedincomeisamajorpartofinvestmentassetallocationastheinvestorsclosetotheretirementageorintheretirement.Itiseasytosaythatyoucanhandlethestockmarketriskwhenthemarketisatornearall-timehigh.During2008and2009,youwouldwishyouhavemorefixedincomeinvestments.Let'slookatanexample.
Ahusbandandawifewere60yearsoldin2007with$2Minvestableasset.
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First,thebasementspaceisnotcountedasthelivingspaceinyourhomeappraisal.Ifyouaddsomebedroomsandbathrooms,itwilladdsomevaluetoyourhouse.Sinceitisnotalivingspace,futurebuyerswillnotgiveyoumuchvalueasyournormallivingspace,itdoesnotmatterhowniceyourbasementis.
Addingabedroomandabathroominthebasementdoaddalotofutilityvaluetothehomeowner.Personally,Idon'tthinkthatitisworthofinvestinginthebasementsp...[
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TherealS&P500startedonFebruary27th,1957.Thedatabeforethatcannotbeusedforreturncalculationpurposessincetheindexwasnot500stocks.Ithasverysmallnumbersofstockscalled'CompositeIndex'.Startingin1957,wehave60yearsdatatouseforcalculatingthereturnswhichisaround10%averageannually.
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