You like money and want to retire someday, right? If not then go sit in front of the TV and tune out for the rest of the day.
The deck is stacked – - both ways. On the one hand you have $4 gas, mortgages foreclosures, a turbulent stock market, and unemployment on the rise (yikes!). However most of us won’t change our driving habits until gas hits $8 per gallon, young college graduates live at home or in an apartment, and don’t own any stock or at least not enough to make us rich or poor when the market fluctuates.
Here’s the beautiful part, the most valuable secret you will ever learn. Get a pen and paper then write this down: Compound Interest. That’s right, your most treasured asset right now isn’t a weekly paycheck, your Sony Playstation, or the flatscreen TV…it’s time. Given enough time you will retire a millionaire and all it requires is some patience, a modest amount of money to invest, and the ability to see the bigger picture.
Set up a 401(k) with your employer IF they offer a company match and only contribute up to the amount they match, hell it’s free money and you’d be a fool not to take it. However when you retire the money invested in these funds are taxed. For young people that means your money goes in untaxed while you are supposedly in the lower tax brackets and comes out getting taxed at the higher tax bracket you have graduated into over the course of your entire working life (you still come out ahead, but there’s a better way).
Start up your own Roth IRA today, right now, this instant. I opened mine with $1000 and most can be started with less. Then every month drop whatever you can into the account (here’s a tip, have the money automatically removed electronically from your bank account each month so you won’t even miss it). The maximum amount you can invest is $5k per year, roughly $416 per month. If you can do this from the age of 25 until retirement there will be a cool $1.4 MILLION waiting for you at the end of your working life…TAX FREE!
Tax free money is nearly unheard of today. Add the fact that you contribute after tax dollars right now while you are in a lower tax bracket (younger, less earning power) than when you retire (older, much more earnings, meaning higher tax rates) and this is a once in a lifetime opportunity. Once in a lifetime because if you wait too long the power of compound interest is lost forever.
This is a lot to cover. Leave a comment or shoot me an email with your questions.
Here’s some ‘homework reading’. Enjoy!
Why You Need to Start Now
Vanguard Roth IRA
All Your Financial Questions Answered
Categories: Investing · Tips from the Pros
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Las Vegas is the only place I know where money really talks–it says, “Goodbye.”
FRANK SINATRA, The Joker Is Wild
Las Vegas rocks. My wife Casey took me on my first trip to Sin City a week ago and we had a fabulous time. Landed at 10pm local time amidst an ocean of bright, glowing lights that had my adrenaline pumping before I could step off the plane!
Anything you want is possible in this city…fine dining at the Mesa Grill in Caesar’s Palace or Tao in the Venetian…shopping for Armani, Coach, and Gucci at the Forum…a little day drinking at the pool at Luxor. Now that I’ve wetted your appetite it’s time to come back down to Earth: all this luxury comes at a cost.
Money doesn’t need to come between you and a rockstar Vegas adventure if you come prepared. Check out these tips to save some green (you know, so you can blow it all at the blackjack table):
Make a trip to the local CVS or Walgreen’s after your plane lands.
Nothing irks me more than paying $5 for a bottle of water or $10 for a beer. My wife and I stocked up on those and other essentials like King Size Snickers bars for normal, non-hotel 600% mark up prices. Mmm, Corona!
Drink a Few on Their Dime…at the 25¢ slots or the $5 blackjack table
Did I say nothing is free? Well, that’s only half true. Casinos spot you free drinks when you’re gambling, so Casey and I waved down a few of the roaming drink waitresses during our hugely fun, but totally unsuccessful, play at the 25¢ slots and $5 blackjack tables at Excalibur. You can drink five or six Coronas, Pina Coladas, whatever blows your skirt up, and toss only $10 at the slots or about $20 at the tables.
Visit … the … FATBURGER!
Treat yourself to a wonderful meal along the strip, it’s worth every penny. For the day (or days) you get a little tipsy off those complimentary adult beverages, hit up the Fatburger, it’s awesome. Located right next to the McDonald’s by the MGM Grand, this place has huge burgers with anything you like to top them off (think Chili, Eggs, or some mayo, mustard and bacon). Grab some steak fries and soda and its like you’re at a 50’s diner. The afternoon I went there was a tour group of Asian teenagers, someone wearing enough gold to open a jewelry store, and a couple of midwesterners wearing fanny packs. Surreal.
Go forth and prosper, It’s Vegas Baby! Put the money you saved into a Roth IRA (more on that another day).
To Your Success,
Joe
Categories: Happiness · Relaxation · Vacation
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