If you’re worried about making your nest egg last, here is a great strategy to utilize. As a CERTIFIED FINANCIAL PLANNER™ in Knoxville, TN, I work with many business owners and even of individuals that ask how to make the money they saved for retirement last. I share the three bucket strategy with them all the time. 1. The Immediate Bucket This the money they will use the first couple of years of retirement. It’s set back in a cash position for them to live on. 2. The Intermediate Bucket In this bucket, we put the money for the middle year, basically years 2-10. We aren’t looking to make the most out of the money. We just want it in a safe place but a little bit of growth is good. 3. The Long-Term Bucket Finally this is where we put the money that we need to outpace inflation. Typically it will be in stocks and bonds. We want the greatest market return we can get. This will carry us through retirement. Talk with your planner or contact us if you have questions on the three bucket strategy.
There’s a study I like to read every year it’s done by the Spectrum Group Research Group, and they provide some fascinating information concerning millionaires in this particular study. It’s a survey of American millionaires. I’m going to working hard to be part of the millionaire club! See I want to be a millionaire. I mean I really, really, really, really, want to be a millionaire. They surveyed millionaires from across the United States about how they spend and invest their money. When we can see how they what, they are doing and if we want to be like somebody then we need to emulate what they did to reach that status, right? So here are some facts for you. Currently, there are 11.3 million individuals in the United States that have a net worth between $1,000,000 and $5,000,000. Of those 11.3 million individuals the average age is 62, with 67% of them being male and 33% are female. Also, 76% of them are married. When I first started looking at the case, I’m thinking, these are doctors and lawyers and such to be able to reach that much money and be a millionaire. However, that simply was not the case. The […]
What is the best way to invest money if you do not need the money for ten years or more? The survey from Bank Rate: 1. Real Estate – 28% 2. Cash – 23% 3. Stock Market – 17% 4. Gold – 15% 5. Bonds – 4% Bank Rate conducted a survey for the last five years, yet the stock market has not managed to ever come in above number three on this list! That’s in spite of the fact that the stock market has tripled the last ten years according to Money.com. Real Estate, Cash & Stocks Let’s look at the winner, real estate. Going all the way back to 1900 through today, real estate has increased 1.3% per year. The stock market, on the other hand, averaged 7% per year. I get it. Real estate makes money. However, according to Forbes, from 1980 to 2005, real estate increased by an impressive 247%. Meanwhile, compare that to the S&P, which gained more than 1,000%, and there’s really no comparison. Stop the “Flip it” mentality. Yes, you can make money in real estate, but you can also lose a lot of money too. An example of this is the ‘CAT’ smart beta hypothetical […]
Now my not be the best time to buy a new car.In 2014, there were 16 million news cars sold in the United States producing an all time record high. Then the very next year in 2015, another record breaking year with sales topping out at 17 million. Additionally, just last year the numbers once again topped the previous years. In 2016, the record jumped to 17.5 million new cars sold. Now we’re in 2017 and sales are on par to do it again. That’s pretty amazing, but why is it happening? Well, the credit crunch of 2008 and ’09 hurt a lot of people. Unemployment rates skyrocketed. Since you never knew if you’d still have a job, people feared using credit to purchase things. I had a Dodge Durango. Honestly, I did everything I possibly (Yep, even duct tape) could to keep it running, because I didn’t want to spend the money on a new car in the middle of that crisis. What transpired after the economy began making a recovery 2014, was that all the sudden business is booming again. Unemployment rates started to drop, and everyone had a little bit of extra change in our pockets. So […]