My father used to say to me, "Money in stocks to invest is like gambling..." "Never know you when you will win or lose."
But this is only true if you make mistake like this...
Get excited and buy a stock, over about coffee most hear working... you know little (or nothing!) about...
Not sell, although to, see it fall in the price... and to think itself... it go back up!
Or worse, sell too soon for a profit... If it keeps climbing!
Really in a few "hot stocks", which you like strong buy...
Now, I will try to break it to you to gently... but if these errors to make, you will lose money... and probably a lot to lose money.
But it must be. It is a simple way and it takes only 15 minutes year!
That is not what we all strive for....., to make our money work hard, so we not so hard to work?Dr. Harold Markowitz won the Nobel Prize in economics for his groundbreaking discovery on how investors can assign their assets for the highest profits in the long run.
That is perfect for your children investment because you have 30-40 years!
Asset allocation is simply mix or wide variety of investments you select. In other words... "Put all your eggs Don don't in a basket!"
And the best part, there's no guesswork involved. Asset allocation WORKS.
Research shows that asset allocation accounts for approximately 90% of the income. This means it is 10 times more important as picking "hot stocks" or market timing is.
If my 16 year old son can make money trading exposure...Maybe you can too! Read more here...
The key is to diversify or buy different types of investments. For our purposes, we concentrate on 5 types of asset classes - Equities, bonds, real estate, precious metals and cash.And here is the "Nobel Prize"-formula:
15% Large cap stocks
15% Small cap stocks
30% International stocks (10% European market, 10% Pacific market, 10% emerging markets)
30% Bonds
Learn, how your kids (or you) can invest 5% real estate shares in real estate for as little as $30
5% Precious metals One of my favorites is investing in rare gold coins
The easiest way to diversify, especially for children, is with investment funds. I use Vanguard mutual funds simply because you have the lowest cost ratios
Mutual funds are one of the best (and least expensive) to own hundreds of different types of shares - with free professional management!
It is by far the best choice for your children if only starting. And it takes just a phone call or click - 15 minutes. You can diversify ideal IRA a Roth also by opening up for children with "earned" income from a job
Now, I told you, the little-known secrets, how your assets with affordable investment funds... assign how much should invest your children... and how have you you understand?Here are some ideas I used on my own 4 children.
All children know how to money, right? And it's typically burns a hole in your Pocket! The trick to keep you in the habit, save and invest a portion to get.
A short word of warning, do not take Grandma's birthday check box way of your 7-year-old daughter and put it in the Bank. This teaches her only money can disappear so you better hurry up and spend...!
Instead, you speak Grandma's check into separate parts with your children about filling divided, to do different things. On the one hand could be spent for buying a new DVD, some to save to later use, grow a part for investments that make money while you sleep and a part for the donation, to help others.
Now, some of you may be thinking... but "Little Tommy deserves his birthday pay OMA!"
You think really "little Tommy" $20 instead of $10 will be happy spending? I remember in my own small Christmas spend more time with the empty fields as the actual toys to play!
You save 0 to 5 year olds - babies, infants - 100 %This is the only time you do save for your children! Be 100% of all income your save child of baptize, birthdays, holidays, etc. is. Let your kids after 5 years to do it yourself!
This is actually the time when most parents any savings program or savings bonds start. I remember my husband this setting for our first two children, but somehow we forget three and four number!
6 to 17 year olds - pre schoolers to teens - save 50% (HALF)
This is when your children save their own money, either in the piggy bank, purse or wallet, along with a savings account.
Yes, save my own children ALL helped make money. We put your savings in the Bank until it reaches $250, and then we invest it together, depending on age.
Their children have no BILLS, so should it be impossible to pay (or Rob!) to save 50%. Imagine how you would be rich if you had started this young!
Just make sure that you understand it grow your money... more and more over the years. And don't forget the instructions you.
18 to 21 - college days - save 10%
Your kids will hopefully in College at the age of 18 to 21. After he is in the habit of saving 50% for many years, seem 10% like a breeze!
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