{"id":1117838,"date":"2019-05-25T15:00:40","date_gmt":"2019-05-25T15:00:40","guid":{"rendered":"https:\/\/dailyreckoning.com\/?p=107434"},"modified":"2019-05-25T15:00:40","modified_gmt":"2019-05-25T15:00:40","slug":"the-wisest-investment-you-might-ever-make","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1117838","title":{"rendered":"The Wisest Investment You Might Ever Make"},"content":{"rendered":"<p>This post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/the-wisest-investment-you-might-ever-make\/\">The Wisest Investment You Might Ever Make<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n<p class=\"p1\"><span class=\"s1\">Retirement planning generally focuses on working from your 20s and retiring in your 60s or later. That gives you 40-odd years to squirrel away 10% to 15% of your annual income to accumulate a sufficient nest egg to last the rest of your life. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Yet <\/span><span class=\"s2\">the reality is that many folks are only a minor emergency, such as needing new tires for the car, away from bankruptcy. Most live paycheck to paycheck. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">In fact, a study by Northwestern Mutual found that: <\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li1\"><span class=\"s2\">21% of Americans have nothing saving for the future<\/span><\/li>\n<li class=\"li1\"><span class=\"s2\">33% of Baby Boomers only have between $0-$25,000 in retirement savings<\/span><\/li>\n<li class=\"li1\"><span class=\"s2\">46% have done nothing to prepare for the possibility they could outlive savings<\/span><\/li>\n<\/ul>\n<p class=\"p4\"><span class=\"s1\">Building up a retirement savings that can last 20, 30, or 40 years is indeed a challenge.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">But there\u2019s a group that has redefined retirement planning by sacrificing today so they can have a better tomorrow\u2026<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\"><b>The FIRE Movement<\/b><\/span><\/h2>\n<p class=\"p1\"><span class=\"s2\">F<\/span><span class=\"s1\">inancial Independence Retire Early (FIRE) folks realize that retirement planning is not like it was for past generations. Gone are pension plans and other benefits for loyal, long-term employees.\u00a0<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">FIRE champions push themselves to live frugally, saving up to half their income while young and retire in their 40s. Then the next 30 years their goal is capital preservation. And thereafter, is the time to consume their nest egg. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Not everyone in the FIRE movement group expects to quit working as midlife creeps in. Rather many hope to move on to an endeavor that they would gladly do without the paycheck\u2026 something that gives them the freedom to be themselves. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">So what does the FIRE crowd recommend you do to achieve such a level of financial wherewithal?<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Let\u2019s start with\u2026<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\"><b>How Much You Make <\/b><\/span><\/h2>\n<h3 class=\"p4\"><span class=\"s4\"><b><span style=\"text-decoration: underline\">Go for the Bucks When You are Young<\/span> <\/b><\/span><\/h3>\n<p class=\"p4\"><span class=\"s1\">When you are young, say in your 20s and 30s and just starting out, go for the money rather than what you think is your passion. That way you\u2019ll have enough put away to do what you love in your 40s, 50s, and beyond. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Besides, how many know what their true passion is at a young age? <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">By the time you hit 40 or 50, you\u2019ll better appreciate the freedom that comes by deviating from the typical 9-5 work environment and be ready to move on to something you feel good about, even if there is little or no pay.\u00a0<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">That passion might allow you to live a more simplified lifestyle in a less expensive part of the U.S., or even in another country.<\/span><span class=\"s1\"><span class=\"Apple-converted-space\">\u00a0\u00a0<\/span><\/span><\/p>\n<h3 class=\"p4\"><span style=\"text-decoration: underline\"><span class=\"s4\"><b>Passive Income<\/b><\/span><\/span><\/h3>\n<p class=\"p4\"><span class=\"s1\">FIRE advocates like money you earn regularly with little or no effort. Examples of passive income include rental real estate, dividend stocks, and bonds. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Suppose though that you don\u2019t have much to invest right now? Here are two ideas to consider\u2026\u00a0<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">You can start off with a small amount and take advantage of a company\u2019s dividend reinvestment plan, better known as a DRIP.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">DRIPs are programs that allow investors to use dividends to buy additional whole or fractional shares direct from a company. The minimum investment in most plans is $250 or less. Moreover, you bypass the broker and the associated commissions. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Another low-cost idea for generating passive income is to rent out rooms in your home to students or visitors to your community. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Airbnb is one source that gives you a platform that will help you generate thousands a year in passive income. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Now for the part that many financial gurus and large financial institutions tend to skip over\u2026 <\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\"><b>How You Spend<\/b><\/span><\/h2>\n<p class=\"p4\"><span class=\"s1\">Great saving habits are the cornerstone of FIRE movement followers. Some, however, take thriftiness to what may be considered an extreme. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">For instance, they might dumpster dive for produce or other food products. Or drive around town the night before trash pickup looking for useable items. Those with creative cooking skills and tough palates scout highways for fresh road kill. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">You might not be into digging through other people\u2019s trash or preparing possum on the half-shell (armadillo). Although, sharing a car with your spouse and eating more meals at home may be more to your liking and can help you on your path to monetary freedom. <\/span><\/p>\n<h3 class=\"p4\"><span style=\"text-decoration: underline\"><span class=\"s4\"><b>Avoid Inflating Your Standard of Living<\/b><\/span><\/span><\/h3>\n<p class=\"p4\"><span class=\"s1\">Learning to live below your means can give you that extra money you need to save aggressively. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Still, many Americans are tempted to buy a fancier car or go on a spending spree when they receive a raise, bonus, or other boost in income.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Before falling into that trap, remember that the pleasures of driving a new $40,000+ SUV will soon disappear. While the satisfaction of successfully investing that $40,000 and watching it grow, will stick with you. <\/span><\/p>\n<h3 class=\"p4\"><span style=\"text-decoration: underline\"><span class=\"s4\"><b>Pay off All Debt<\/b><\/span><\/span><\/h3>\n<p class=\"p4\"><span class=\"s1\">The S&amp;P 500 has averaged an approximate 10% return over the past 90 years. Although there\u2019s no guarantee it\u2019ll do the same down the road. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">On the other hand, credit card interest can run 15% or higher. Interest rates for student loans, car loans, and home mortgages can be considerable lower. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">However, you have to pay interest charges regularly\u2026 no matter what the stock market is doing. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">So it doesn\u2019t make much sense to invest stocks until you get those debts out of the way.<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\"><b>Two Possible Downsides to the Fire Plan <\/b><\/span><\/h2>\n<p class=\"p4\"><span class=\"s1\">The first is that you\u2019ll likely lose any group health insurance you have from your employer if you jump out of the workforce early. That means you\u2019ll have to buy coverage or pay out of pocket for medical care. Another option is to go offshore if you need an expensive procedure.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">The second is that your Social Security benefits will take a hit. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">But as long as you had worked the 10-year minimum, you\u2019ll be eligible for a benefit. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">It\u2019s not something I would count on in its present form anyway since the system is on shaky grounds and set to be broke by 2035 as indicated in its latest annual report.\u00a0<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Of course you could fail to save enough and have to work longer than hoped. And you always have the option to decide the FIRE lifestyle is not for you. You may even be one of the lucky few who find a career you truly love while you\u2019re in your 20\u2019s or 30s. <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">The gigantic upside\u2026 <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Leading the happiest, most satisfying life possible.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">So are you willing to do what it takes to achieve that sort of financial freedom \u2014 your independence date \u2014 by the time you\u2019re in your 40s or 50s? <\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">A few simple habits, like turbo-charging your savings and chopping spending, may seem like a small price to pay \u2014 and it could be one of the wisest investments you\u2019ll ever make.<\/span><\/p>\n<p>To a richer life,<\/p>\n<p><img decoding=\"async\" class=\"align-none\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/signature-nilus-mattive.png\" alt=\"Nilus Mattive\" \/><\/p>\n<p>\u2014 Nilus Mattive<br \/>\nEditor, <i>The Rich Life Roadmap<\/i><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/the-wisest-investment-you-might-ever-make\/\">The Wisest Investment You Might Ever Make<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/the-wisest-investment-you-might-ever-make\/\">The Wisest Investment You Might Ever Make<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n<p>Building up a retirement savings that can last 20, 30, or 40 years is indeed a challenge. But there&rsquo;s a group that has redefined retirement planning by sacrificing today so they can have a better tomorrow&hellip;<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/the-wisest-investment-you-might-ever-make\/\">The Wisest Investment You Might Ever Make<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/dailyreckoning.com\/\">Daily Reckoning<\/a>.<\/p>\n","protected":false},"author":86,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[366,2743,730,625,2627,923],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117838"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1117838"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117838\/revisions"}],"predecessor-version":[{"id":1117839,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117838\/revisions\/1117839"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1117838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1117838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1117838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}