What a week! If you haven’t done so already, I hope that you are the cusp of shutting work down for the holidays. And guess what? It's my turn to give you all THREE of my gifts – make sure you read to the bottom to get them all. Instead of spending time talking about the tax bill (sad face), l will focus you on something I know you’ll love…..(drum roll). Check these out:Read More
Happy Monday! The sun is shining in the Midwest, and I am always amazed by the energy that sunlight provides me. I hope that you are letting the sun shine on you today.
I know you want to know HOW I get you $1 million dollars, right? These days, Buffet is buying Apple stock in the hopes of getting his millions, but what about yours?
Well, I have done the millionaire math and all you have to do is the ACTION (remember, it’s the year of action):
If you put $1,000 away each month in the stock market for the next 30 years, you will have $1 million dollars. Now, I’m assuming that the stock market returns 6% per year, even though historically the market has returned 7%.
Can you blame me for being a little conservative? If you missed my fun talk on market returns, check out my video.
The sad truth is that if you put that same $1,000 in a checking account every month for the same 30 years, you’d only have $360,000. Yup, I’m saying that when you invest your money and it earns what the stock market has returned historically, you can TRIPLE your money because of the power that investing provides you.
So, here’s 3 steps you can use to set yourself up for your own $1 million dollars:
- Well, it starts with being comfortable that you have 30 years left to go. I know, it sounds harsh, but if you’re over 50, I would suggest you think slightly differently about this approach. Drop me a line and let me know if you’re feeling a certain kind of way about being here 30 more years or other considerations (e.g. health issues, traveling, etc.) you’re thinking about.
- Can you allocate $1,000 every month to investing for the long-run, albeit in your retirement account and/or your brokerage? Remember, you have to take a holistic view and think about not just your 401k accounts but any accounts outside of your 401k. If the answer in “no,” then perhaps $500 is more digestible right now. And, guess what? That’s OK because you can only do what you can do – it’s just going to take you longer to get that MILLION dollars.
- Take an inventory of your current investment accounts. I mean it – if you don’t know what you’re invested in, whether inside your 401k or outside your 401k, how will you know whether you’re getting the return you need to hit the mark. One of the things MANY people do is bury their head in the sand, but this is not you – you are equipped to face the music head on. Drop me a line below if you have a good strategy for staying on top of what your investment accounts
There you have it – you’re on your way to your $1 million. I told you I’d jump start the process. Leave a comment below and share HOW you’re going to employ the above strategies.
I’m Right There With You!
Today we celebrate the life of Rev. Dr. Martin Luther King, Jr.mIf you attended a rally for justice, then I hope you are spurred to take action against any injustices in your community. If you snuggled on the couch in front of the television, then I hope you got the much-needed rest that has escaped you since the start of the year. Whatever way you’ve spent today thus far, here’s one of my favorite King quotes for you to chew on before the night is over:
“The dignity of the individual will flourish when the decisions concerning his life are in his own hands, when he has the assurance that his income is stable and certain, and when he knows that he has the means to seek self-improvement.”
King made this statement during his 1967 "Where Do We Go From Here?" speech to the Southern Christian Leadership Conference. I love this statement because King makes clear the human need for income stability and certainty. It is hard to do any good work without the income to support your desires. As you gear up for your YEAR OF ACTION, having income stability will be important for you to take advantage of other opportunities such as investing or staring a business.
This Week’s Action
In the spirit of ensuring stable income, have you spent time with your parents to check in on their financial situation? I know – tough topic, but a critical one. My mother and I are having in depth conversations about retirement and what life looks like when she takes the plunge and joins my father. With the stock market still trending downward, make sure you ask your parents how they are preparing for (or living through) the market woes. Our parents’ financial state will affect us, for better or worse, so make the time to start asking questions. Leave a comment below and let me know what you will ask your parents.
This year’s MLK day is particularly meaningful for me because when my husband and I went to Memphis this past December, we stopped by the Lorraine Hotel, where King was murdered.
I can’t describe the feeling eloquently in words, but I will say that King’s spirit is alive and nudging us all to be better, to keep fighting, and working toward economic justice for all.