Obama With the Western Native American Nations
I get a good laugh when I read and hear people talk about Democrat Obama and Republican Bush. They usually are for or against them because of family bias passed on through the generations or because of current events. What they don’t understand is that they are just managing the government. The beaurocracy run by the corporate community are the people in control of policies.
In the 1980s, under President Reagan, the public was given the right to save for their own retirement. They did this because they knew that years down the road, the governments, local, state, and federal will reduce retirement benefits along with business. I am willing to bet that Social Security will give you a rent or mortgage voucher and a food voucher instead of giving retirees money to spend by the year 2050. Retirees will get so much for housing and so much for food per month. They will not get any spending money. It will work much like the welfare system does today.
The greatest nation in the world 5 thousand years ago is one of the poorest today. Things fall a part faster today.
The Problem with People
Most people can’t save because they do not make enough to save or they are not discipline enough to save money. Most shopping junkies save very little money. Most gamblers, drug users, or drinkers don’t save money at all. These people are in trouble and no matter what I say; nothing is going to help them.
Who is my audience?
Anyone that wants to learn! I am talking to the people who want help to retire. I will be retiring in less than a year and I will let you know how I am doing in retirement. I write this blog to help the people who understand that their situation is not going to get better in future years unless they take action themselves. If you think that I am just a braggart then you don’t need to read this blog.
If you want to do as well or better than me, I suggest you read this blog. No matter how young you are or how old you are, you will get to retirement age. Some companies will tell you to leave because of age. Other companies will lay you off calling it downsizing and you will not be able to find another job. All these things that I have suggested are important reasons to save for your own retirement.
What you should do?
What you should do is take 15 minutes out of your week and learn something about saving and investment programs.
If I were you, I would be saving 10% of each paycheck in a retirement account. So if you are bringing home $1,000 every two weeks ($1,000 times .10), I would put $100 in a retirement account. Question, what if I die 5 years from now? You would have $13,000 in savings, ($100 times 26 weeks times 5 years). Plus you have the interest that money has made. You do not need a life insurance policy, your retirement savings is your life insurance policy. Question, I don’t want to pay taxes on that money! If you have it in an IRA or 401k, your taxes are tax deferred until you withdraw the money, hopefully in retirement when you no longer have a paycheck. You already paid taxes on the income so you only pay taxes on what you make off of the money. Just keep records of how much you put in and how much you make. By the way, you pay taxes on your social security income.
How do I get started?
If you have a 401K at work, find out what if anything they give you such as a dollar for every five dollars that you save with them. If they give you money, I would invest money in their 401K to the extent of the company’s contribution. For example, if they say you can invest up to 10% of your pay in their 401K but they only match the first 3% of your contribution, I would only invest 3% in the company 401K.
I would put the rest, 7% in an IRA. I would open an account at an online brokerage firm and have that money automatically sent to them by your employer or your bank. I suggest OptionXpress because they have very little in fees. This is the OptionXpress Website:
https://www.optionsxpress.com/login.asp?r=1
The 20 Year Dow Cycle
Investing my Retirement Money
If you are under 40 years old, I would put my 401K money in individual bonds. Most 401K programs will not allow you to do that. If they do not, I would put my money in stock funds. Why because we are in the lowest point in the interest rate cycle. Interest rates can only go up from here. That means that bond and other interest income security prices will fall. As your age approaches retirement, place more and more money into high yield bond funds. For example, from ages 40 to 50 put 33% in high yield bond funds. From age 50 to 58 put 50% in high Yield bond funds. After 58 years old, put 100% in High Yield bond funds or put the money into a short term bond fund. Short term bond funds will offer protection against rising interest rates and inflation.
The idea is to take away the market risk as you get older toward retirement.
If you are over 40 years old, I would put the maximum amount of money in a retirement program that I could. Check with the IRS website to find the maximum amount that you can save per year.
Self-Directed IRA Accounts
If you have over $1,000 at any given time in your self-directed IRA, I would find Standard and Poor’s BBB+ to B- bonds to invest and keep them until maturity.
Take my course;
http://greedyfriendsstockclub.blogspot.com/2012/06/greedy-friends-stock-clubhtml#!/2012/06/greedy-friends-stock-club-stock-and.html
The Greedy Friends Stock Club Stock and Bond Course
Your retirement program should be part of your overall life strategy. Once your earning years are behind you, the money will not come in like it once did. But your bills will increase as you get older. Your medical bills will rise the fastest. Don’t think that Obama Care is going to pay for all your medical expenses. Don’t think that Medicare is going to be any better. As time goes on, these programs will offer less and less to the public.
Your financial health and the financial health of your family is your responsability. It is not the responsiblity of the church, the community, or the government.
