Phil's Personal Finance Tip of the Day:
Basic Rules for Getting Rich
By Carla Fried, Anne C. Lee, Elaine Pofeldt, Susie Poppick and Penelope Wang | Money – Tue, Jun 26, 2012 10:40 AM EDT
Part of a special report on 101 ways to build wealth, readers and experts weigh in with advice that will help you lay a foundation for accumulating wealth.
1) Focus on what's most important
In achieving wealth, how you invest isn't nearly as important as how much you save.
Say you're 40, have $200,000 saved, with 60% in stocks, and are putting away 10% of a $100,000 salary (including company match). You have a 52% chance of retiring with 70% of your pre-retirement income, according to T. Rowe Price.
Boost your stock stake to 80%, and your chances improve modestly, to 57%. But if you boost your savings to 15% instead, you get to 69%.
[Related: Jobs with high lifetime earnings]
Message: Stretch to save the most you can.
2) Make a family decision
62% of couples don't agree on their expected retirement age.
The age at which each of you will retire determines how much money you'll need. If you're among the multitude of couples that the Fidelity survey (cited above) found were not on the same page, make some time to talk with your partner about when you'll quit and what you'd like your life to be like.
To read the entire article:
http://finance.yahoo.com/news/basic-rules-for-getting-rich.html
Romans 12:10 — Be devoted to one another in brotherly love. Honor one another above yourselves.
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