Today, every resident of Nigeria can access the global currency exchange. This is the vastest market in the world as close to 6 trillion US dollars circulate there daily. Currency trading is booming: now, you can monetize knowledge and earn money without leaving your home. Everything is done remotely, which is another attractive benefit. ECN brokers are professional intermediaries that provide you with access, guidance, and tools.
Why Copyright and Intellectual Property Matter as a Small Business
The term intellectual property (IP) often comes up, especially in terms of well-known brands and products, but what exactly is it? Intellectual property covers ideas, innovations, and inventions created by a person or a group of people (can also be anything from a company to small business). [Read more…]
How Bitcoin Trading Software Work as Automation?
Deciding for something is a great thing, which a trader takes every day for his work. A trader needs to see several tools to make an informed decision before buying or selling a stock. [Read more…]
How To Get Your Freelancing Finances In Order
There is a definite shift in the career market away from 9-5 office workers and those that choose to branch out on their own as freelancers. With over 57 million freelancers already hanging out their shingles, that number is expected to grow substantially in the next decade. With the recent coronavirus pandemic requiring many employees to work from home; the way that we get back to work could be a very different kind of “normal”. [Read more…]
Why Insurance Is Important Now More Than Ever
Insurance companies have always been great helpers for many individuals and companies over the years. But during the COVID-19 outbreak, even these companies took the toll. [Read more…]
The Epic Bitcoin Halving Has Taken Place: Here Is What You Need To Know
Every four years, a magical event takes place in the mysterious realms of Bitcoin Mining. The event is known as ‘Bitcoin Halving’ and reduces the pay out to miners by half, every four years. This year 2012, the halving was supposed to reduce the Bitcoin rewards from 12.5 BTC t0 6.25 BTC. [Read more…]
Investment Tips: How much should I have in my 401(k)?
Part of planning for financial freedom is making sure that you are financially protected when you hit retirement. However, only a few know how to maximize their 401(k) in a retirement investment account as part of their overall portfolio.
If you want to explore the basics of investing your 401(k) to increase your retirement benefits, no worries. This article provides you with a summary of the five (5) most useful tips on how your 401(k) can help you retire with more financial security.
What are 401(k) Investments?
Before going into the details, you should know that a 401(k) investment is basically a retirement savings tool sponsored by your employer. This tool allows you to invest a portion of your paycheck into a retirement investment account. Your money will grow tax-free until you are retired, and that’s when you can use it.
The question that many ask is about the portion: how much of one’s paycheck should go into this retirement investment? In addition to that, here are some tips about putting a part of your paycheck to your 401(k) investments.
Invest Early
It is true that you can begin your retirement investment later when you are older. However, the earlier you start investing, the better. In fact, it is best to start contributing to your 401(k) as soon as possible. In doing this, you earn more. That’s just how compound interest works: you gain more interest when you start earlier. If you are a young worker, you have the advantage of the time that older folks will never ever have. Invest early.
See How Much You Can Set Aside
As a rule of thumb, you need to invest a percentage of your earnings that is equivalent to the difference between 100 and your age. For instance, if you are 20 years old, you need to invest 80% of your earnings as savings or into your retirement fund. This is based on the assumption that, at an early age, you still don’t have many responsibilities and can afford to invest more money.
If that amount or percentage is too high, you can decide on a fixed annual amount. For example, you can contribute a max of $19,500 to your 401(k) in 2020 if you are under 50. All you have to do is calculate a fixed amount below the threshold of $19,500.
Hire a Portfolio Manager
Still unsure or want to maximize your investments? You can explore other options such as using a robo-advisor such as Wealthfront or Betterment. This is one of the best options for someone who is unsure or does not know how much they should invest.
The robo-advisor will run the numbers for you to determine the best combination of investments in your 401(k) fund. You can set the target amount you need for retirement and the algorithms will compute how much you need to set aside every month or year so that you can have that amount when you retire.
Match Your Employer
Another way to determine how much you should contribute in your 401(k) is to look at how much your employer is contributing. For instance, if your employer only offers a maximum of 10% of your salary, then you should match your employer and contribute at least 10% as well to get the most out of your 401(k) investments.
Check Investment Types
When you contribute funds to your 401(k), you have to choose which investments it goes to. With each kind of investment, there is a specific percentage of return based on the risk profile. Since the percentage of return is different for each investment, your choice will affect how much you need to contribute in the 401(k) so that you can reach your target retirement funds.
If you have enough in your 401(k), before you start computing, consider the types of investments that you will choose. For instance, if you choose to invest in the stock market, you will earn more and faster but the risk is higher. If you want to do this, you might want to invest a lower amount.
On the other hand, you will have more stable returns if you invest in mutual funds. However, interest will be less so you want to contribute a higher amount to achieve the retirement fund levels that you want.
Takeaways
For dignity and independence, you want to retire with enough funds so that you won’t need to depend on help from your children or other people. With the investment tips summarized in this article, you can think about your best options to save and invest money in your 401(k) for your retirement. The five (5) points summarized in this article should help you begin to find the answers to all your basic questions and concerns.
For more great articles from The Free Financial Advisor, consider these:
Financial Planning Basics – The Financial Pyramid
How Long Should You Keep Financial Records After A Death
Reduce your debt by using a balance transfer card
Believe it or not, one of the most efficient manners to pay down the credit card debt is simply by making use of a balance transfer. While it might look as an unorthodox method to make this happen, the truth is that it works perfectly well to the point it can get you out of this uncomfortable problem. [Read more…]
7 Common Mistakes to Avoid for a Better Credit Score
One-third of Americans have a credit score of lower than 601. That’s in the fair to bad group. And you know that’s not good.
Having bad credit can really affect your ability to build the life you want. This score helps determine if you are eligible for loans to buy a house, car, or even an extra big toy like a boat.
A Quick Guide on How to File for Bankruptcy
Thanks to COVID-19, over 16 million Americans have filed for unemployment within a three-week period. While some of these layoffs are temporary, many of them are permanent as companies struggle to keep their doors open.
If you recently lost your income, staying on top of your essential bills may seem impossible. The situation becomes even more difficult if you have have a lot of debt.
- « Previous Page
- 1
- …
- 36
- 37
- 38
- 39
- 40
- …
- 52
- Next Page »