In today’s busy world, you might often feel like you’re drowning in responsibilities to your family, coworkers, clients, and even your neighbors. There’s always someone or something saying you ought to be doing something.
How should you invest the money you plan to spend in 2 years to buy a house/boat/car or go on a trip? The answer is, you shouldn’t. In this blogpost, we discuss how to truly get into the mindset of a long-term investor by projecting your net cash flows over the next five years and being sure NOT to invest them.
So, you want to live comfortably in your future years and you’re not so sure it’s going to happen. What to do? The best step is to maximize your savings. If you’re not already putting the most you can into your retirement accounts, consider starting now.
We have many choices when investing. Today, we are going to look at the different ways an account may be taxed: now, in the future, and never again. Given these choices, we might think the “never taxed again” structure is best and the “taxed now” is worst, but there’s much more to the story.
The markets do not care what stage of life you are in. I know that sounds funny, but we can sometimes think we should invest differently because of something going on in our own life.
Your Savings Target is the amount you want in savings so by definition, anything above this amount should be invested in your Long-Term Portfolio.
I know that might sound odd as we tend to save throughout our working life and even sometimes well into our retirement years. But there will be times you need to withdraw your savings and it’s important to consider the tax implications.
The goal with taxes is not to pay the least amount of tax – it’s to keep as much as you possibly can. There are lots of strategies out there designed to minimize taxes, and unfortunately, many of them also minimize what you take home.