Why retirees end up here

The Most Important Investing Question We Get Asked... [View Online]()|[Unsubscribe]( [Street Authority Daily] -[]Recommended Link [Why retirees end up here]( Why are American seniors flocking to places like Vietnam and Ecuador? Frankly, it's the ONLY way many of them can afford to retire (or stay retired). But that's because most Americans haven't heard about [the "Fast Money Crossover"](... A strategy so consistent and so easy, it could put $748 (or more) in your pocket, virtually every week, with just 10 minutes of "work" (if you even want to call it that). Want in? [Discover the full details behind this strategy here.]( May 13, 2021 The Most Important Investing Question We Get Asked... By SA Analysts After years of analyzing the markets and doling out investing advice, we've been asked thousands of questions. Some are seasonal. When can I expect a correction? What do you expect from earnings season? Some are topical. Are you worried about China's economy? How will this overseas conflict affect my investments? -[]Recommended Link [What if money wasn't an issue ever again?]( A little-known income "plan" is offering a small group of Americans the chance to collect up to $18,836 a year in extra cash. And the only requirements you need to meet are being born before 2002... 90 seconds of free time to fill out the form... and a small investment.. The next round of payouts is just days away. [Get your name on the list to receive it while there's still time.]( But time has taught us that there is one burning question that people wrestle with more than any other in the financial world. Where do I start? If you find yourself in this boat, that's okay. It's like your third grade teacher taught you: If you have a question, there's probably a few others in the room wondering the same thing who were just too shy to put their hands in the air. So, to someone asking how to even begin investing, the first thing we'd like to say is: Congratulations! The most valuable thing you have is not money. It is time. So starting now is a good idea. Before You Begin... For new investors, the first step is not to decide how much to invest. The first step is to make sure that you have a clear picture of where you stand financially. To some people, this might sound insultingly basic. But you'd be surprised by the people we've talked to who have absolutely no clear idea about this. First, how much money do you take home each month? Jot down your take-home pay. Now set that number aside for a minute, because, believe it or not, there are a few things we want to double-check. Think of it this way: You know you need to put gas in the tank, but you also need to check the oil and tires. For the next step you need a blank piece of paper. Draw a line down the middle. At the top of the left column, write down "Assets." This is everything you own. Your home. Your car. A checking or savings account. A life insurance policy, brokerage account or maybe valuable jewelry or a valuable collection. Add this up. Underline that number. These are your assets. In the right column, write in "Liabilities." This is what you owe. Your mortgage, maybe a car loan or credit cards. Add that up. Underline that number. These are your liabilities. The difference between the total in the left column, what you own, and the total in the right column, what you owe, is your net worth. But remember: It is just a number. Your value as a person cannot be tabulated. Now set the assets and liabilities aside. Get another sheet of paper. This will encompass your monthly living expenses. Rent or mortgage, insurance, utilities, food, gas, car payment if you have one, life-insurance premiums -- every penny you spend. Now set that aside. More Kitchen Table Economics Let's look at your debts. Debts should be ordered by priority, and priority should be determined by the interest rate -- the highest rate loan always should be paid first. After all, it doesn't make any sense to invest in the market to capture a 12% annual return if you have credit card debt that is costing you 25%! Pay that first. At this point, we want to go back to where you wrote down how much you are paid. If you're participating in an employee-sponsored retirement plan like a 401(k), contribute as much as you can to obtain the maximum match from your employer (if they offer one). If they match dollar-for-dollar up to a certain amount, then congratulations -- you just doubled your money. The next step is to determine your emergency fund. This should be bare minimum three months, ideally six months to one year, of your living expenses. This is held in cash. Pro tip: stash it in a bank other than the one that you have your checking account. With electronic banking, it is way too easy to transfer some money from one account to another. So we advise you keep a good, old-fashioned savings account with no ATM card in one bank and your checking account in another. Now's the time for some brutal honesty: Depending on your situation, it might take you five years to fully fund your emergency fund. That's fine. It is a long-term goal. We're not here to tell you that you can't both build up your emergency fund and invest at the same time. It's worth thinking about -- but at the end of the day, you're the one in charge here. Now Comes The Fun Part So you have completed a household budget, you have created a personal financial statement (which, incidentally, is exactly the same as a corporate balance sheet) and you have a schedule of debts and a plan to pay them. Now, for the fun part. Please read this next sentence carefully: You probably won't get rich quick in the stock market. At least, not in the short-run. Don't buy penny stocks thinking they will shoot up. Buy good companies with real potential that you understand. Reinvest all of your dividends. Slow and steady wins the race. Building wealth is a marathon, not a sprint. But that doesn't mean you have to settle. In fact, if you're a self-driven individual, here's a strategy worth considering. We're fans of a simple 80/20 approach. This is where you put 80% of your portfolio in reliable and predictable wealth-building investments. Think index funds that track the broader market, blue-chip stocks... stuff like that. The other 20%? Well, that's the really fun part. This is where you take your shot with high-growth potential investments. But don't speculate -- do your research. If you have a while before you want to retire, and depending on your risk tolerance, it can offer a lot of upside. P.S. In a market that's constantly changing, you need to stay on top of major trends that have the potential to create life-changing gains... Thanks to the changes brought on by Covid, that's never been more true. And one big trend that isn't going to go away is telemedicine. After months of painstaking research, we've unearthed the best plays on telemedicine, but many investors have never heard of them. The time to invest in these little-known companies is now, before the herd catches on and bids up their shares. [For details, click here](. -[]Recommended Link [Countdown to RESET 2021]( [Countdown to "RESET 2021"]( Time is running out... A [ground-shaking new prediction]( from Dr. Stephen Leeb estimates that millions of Americans are now facing a critical choice: make virtually unlimited wealth… or face back-breaking poverty. [Learn more here.]( To ensure that you receive these emails, [please add us to your address book.]( Disclosure: StreetAuthority doesn't own shares of any securities mentioned in this article. Members of our staff are restricted from buying or selling any securities for three days after being featured in our advisories or on our website. StreetAuthority is a publisher of financial news and opinions. StreetAuthority is not a securities broker/dealer or an investment advisor and we do not recommend or endorse any brokers, dealers or investment advisors. This work is based on SEC filings, current events, interviews, corporate press releases and publicly available information which may contain errors. All information contained in our newsletters and/or on our website(s) should be independently verified with the companies or sources mentioned. You are responsible for your own investment decisions and should always conduct your own research and due diligence and consider obtaining professional advice before making any investment decision. This message was sent by an automated message delivery platform. Please do not reply to this email address. 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