By Ken Faulkenberry
Financial experts estimate you will need 70 – 90% of your current income to maintain your current standard of living when you stop working. The three most common sources of retirement income are social security, employer-sponsored retirement plans, and personal savings and investments. Besides the fact that social security benefits will almost certainly [...]
Entries Tagged as 'compounding'
How Early Should Retirement Planning Start?
March 5th, 2010 · No Comments · General Advice, Investment Planning
Tags: compounding·plan for retirement·retirement income·retirement planning
Always Re-Invest Your Dividends
January 27th, 2010 · 2 Comments · AIP Money Management Tips, Portfolio Management
AIP Money Management Tip
By re-investing your dividends you are always dollar cost averaging back into your investment. When prices are low you buy more shares, and when prices are high you buy fewer shares. Your dividend will continue to grow because with each dividend payout you have more shares than the last. In addition, if [...]
Tags: compounding·dividends·dollar cost averaging·reinvesting dividends
Why Investors Should Make IRA Contributions Early
January 14th, 2010 · No Comments · Individual Retirement Accounts (IRAs), Investment Planning
Twin brothers, Peter and Paul, start contributing to their IRA at age 25; each put $5,000 per year in their IRA; each earns 10% per year. The only difference is Peter makes his contribution at the beginning of each year, but Paul procrastinates and doesn’t make his contribution until the end of each year. How [...]
Tags: arbor investment·compound interest·compounding·IRA·IRA contributions·ken faulkenberry·power of compounding
Consider Risk When Allocating Your Portfolio
November 30th, 2009 · 1 Comment · AIP Money Management Tips
AIP Money Managment Tip
Even if you’re able to generate considerable income, you have to know how to protect and preserve your capital. Investors who have employed a buy and hold strategy have lost a decade worth of growth. When the market just kept going up, it was easy to think it would continue and not [...]
Tags: 401k·AAAMP·active asset allocation strategy·Arbor Asset Allocation Model Portfolio·asset allocaton·bonds·buy and hold strategy·compounding·Cut Tax Bill·IRA·money management tips·money tips·REITS·risk·tax-deferred accounts·utilities
Five Most Important Factors Affecting Your Portfolio Value
November 11th, 2009 · No Comments · Investment Planning
1. Number of years your money has to compound – Compounding is THE most powerful investment principal. Start your investment program early! Starting at age 25, a $300 monthly investment earning 8.0% will build a 1 million dollar retirement portfolio at age 65. Starting at 45, will require a $1700 monthly investment for the same [...]
Tags: 401k·Asset Allocation·compounding·IRA·miracle of compounding·pay yourself first·portfolio investment tip·save·taxes
