Dollar Bits: like a roller coaster

You can retire

5 steps you can take today to make building wealth mindless

More than 75 million millennials born between 1981 and 1997 are ready to take over estimated $30 trillion in wealth from baby boomers

Millennials may have soaring debt, sketchy jobs, and might be considered pampered and narcissistic, but they also will be inheriting more money than any prior generation. What they do with it will certainly be interesting.

Can you answer these three questions?

When economists Annamaria Lusardi and Olivia Mitchell conducted a three-question survey to see how much people really know about compound interest, inflation, and stock risk, the results weren’t great: Only 30 percent of respondents answered all three correctly.

Can you stomach market declines?

Many investors today have never experienced a sizable market decline. Back in 2008/09 we witnessed a 37% drop in stock values. Could you emotionally handle that kind of decline? Many younger investors have never witnessed this kind of drop; they might even think that markets could only go in on direction.

Even seasoned veterans can be lulled into a sense that markets can only rise. Here’s how your emotions can ebb and flow as the markets move. A friend commented this morning:

The market has been a bit of a roller coaster lately.  I go from thinking “Oh! Great I can quit [my job] soon.” to “Shit, I have to do this stupid job for the rest of my life.”

Even the most seasoned investors can react to market swings. Are you prepared for a large decline in the stock market? Will you be able to deal with it? There are steps you can take right now. Everyone should have some portion of their money in stocks, bonds, and cash. Most advisors recommend something between 80% stocks to 20% stocks depending on your age and risk tolerance. Warren Buffett plans to have his wife’s money in index funds. Upon his demise, he will put 90% of his money in a broad based index fund, the remaining 10% in cash. What’s your risk tolerance?

How to Budget Consistently Without a Steady Paycheck

Freelancers, small business owners, contractors, and salespeople working on commission all have one thing in common: irregular income. Anyone who has worked in these professions knows the insecure feeling you get when you are lurching from flush months to lean months as work (and on-time payment) waxes and wanes. Here’s how to create a budget if your income is inconsistent or irregular.

Think Like a Startup to Boost Your Finances

From tech giants like Facebook, Dropbox, and Instagram, to retailers like Harry’s, Warby Parker, and CartFresh, companies who found success as startups seem to be all the rage in business news. But don’t take startups as a business fad — there are plenty of personal finances lessons that the average Jane and Joe can learn from them.

Take $25 off your first Amazon Fresh order

Amazon Fresh offers an easy way to shop for local produce, perishables, and household products. Like most online grocery services, you can select your preferred delivery time and, depending on when you place your order, receive your groceries the same day or early the next morning. You’ll receive $25 off your first order if you spend $100 or more when you use the promo code “25FRESH“.

 

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