Each month, we check the latest CPI numbers to see how things are looking. In July, we made a video about the numbers for June—and they were pretty interesting. Continue reading “You Just Took A 5% Decrease In Pay!”
Everyone knows that assets minus liabilities equal your net worth. But have you thought about the control you have over this equation? Continue reading “How To Become More Valuable!”
If you’re familiar with the original Setting Every Community Up for Retirement Enhancement (SECURE) Act, you know that this legislation was passed in late December 2019. Continue reading “The Retirement “Secure” Act 2.0!”
So you want to be a millionaire. What does it take? Do you have to inherit a massive amount of wealth? Graduate from an Ivy League school? Earn a high salary? Continue reading “How To Become A Millionaire!”
At the end of July, the media’s favorite brokerage IPO’d. Which brokerage is that, you might ask? Why, Robinhood, Continue reading “Robinhood!”
The Fed’s Interest Rate Announcement & the Market’s Response
Here at Nelson Financial Planning, we’ve been saying for months that the data makes it hard to justify keeping interest rates where they are. Just consider the current inflation rate. The Consumer Price Index (CPI) was at 5% for the 12-month period ending May 31, 2021, the highest rate since 2008. In fact, the CPI has only been above 5% for a rolling 12-month period three other times in the past 30 years. Continue reading “Your Debt is About to Cost You More Money!”
Here at Nelson Financial Planning, we know our clients work hard at their jobs. Most also have a 401 (k), to which they contribute a portion of their paycheck every month. If you haven’t opened a retirement account yet, you should do so today, especially if your employer matches at least a portion of your contributions. Continue reading “How Much Can 1% Affect My Returns?”
Are you thinking about selling your home this year? Will you owe taxes on the sale if you do? A lot of homeowners ask this question. Rest assured that if you meet specific requirements, you could benefit from one of the biggest tax breaks out there when you sell your house. But if you don’t qualify for the exclusion, your home could become a massive tax liability. Continue reading “Is Your Home a Massive Tax Liability?”
There’s a lot of speculation surrounding how to become a millionaire. Do they inherit a massive amount of wealth? Graduate from an Ivy League school? Earn a high salary? What would you say if we told you that an average person with an average income and no inheritance can still become a millionaire? Continue reading “Fake Millionaires!”
Many studies have been conducted over the years to pinpoint the common traits of savvy investors. Here are five factors that these studies have identified as the keys to successful investing.
First and foremost, strive to spend less and save more. The more you tuck away each month, the more wealth you will accumulate over time. To put this advice into action, always pay yourself first. This means putting at least 10% of your income from every paycheck straight into a retirement account. Then, make sure your expenses don’t exceed the remaining 90% of your income. Cut back on your spending if you must to make sure everything else gets paid.
We’re inundated with information 24/7, so it can be hard to ignore all the noise out there. However, as the old Bobby McFerrin song says, “Don’t worry, be happy.” Stop worrying about whether a bubble or a crash is happening right now. Stop worrying about what might happen with the market next week, next month, next quarter, or next year. Studies show that even if you invest at the market peaks each year, you still wind up with great, long-term results.
When you start investing early, compounding interest has time to work its magic. Here’s what happens: Say you put $10 into an investment account. The balance grows by 10% in year one, so now you have $11. The balance grows by 10% again in year two, but you don’t make $1—you make $1.10. This compounding effect leads to a sizable amount of wealth over an extended period. Starting 10 years earlier than someone else could result in a much more sizeable retirement account.
The world is not going to end if your investment account loses value from one month to the next. And if it does, then your financial plan doesn’t matter, right? All jokes aside, understanding that you need a positive outlook helps you stay the course as an investor.
Over the past 100 years, the markets have certainly seen ups and downs because of world wars, recessions, presidential assassinations, pandemics, and everything else you can think of. And yet, the trajectory has continued to move upward. Remember, the market represents the value of companies that produce high-demand goods and services. So it’s really no surprise that the market continues to trend upward over the long-term.
Have a Steady Temperament
Temperament cannot be learned. Rather, it’s an innate characteristic of your personality. A steady temperature allows you to consider the bigger picture and not lose sight of potential growth, even during periods of extended market upheaval. Others may get swept up in their emotions, but successful investors never abandon their discipline.
Looking to accumulate more wealth in 2021 and beyond? Turn to Nelson Financial Planning. We have over 35 years of experience helping our clients enjoy cost-effective financial plans and superior investment results. To schedule your free initial consultation, please call us at 407-629-6477.
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