3 Things 12-4

12/4/2020

THING ONE

Earn A Million Dollars With Your Lunch Money

Consider this:

According to a survey conducted by Visa, the average American is spending $2,747 per year ($229 per month) on mid-day meals.

Now consider this:

If at age 18 you started investing just $160 of that total a month (you could still spend the change on lunch if you wanted) and didn’t stop until you retired at age 70 (which is what the retirement age is likely to be for a current 18-year-old) you could end up with just over a million dollars.

Leftovers, anyone?

THING TWO

Company Matches Are Back On

As the pandemic weighed on corporates finances, a significant number of companies suspended the matching portion of their 401k plans. Many are now starting to reinstate them. The typical matching program offered by companies that have a plan (according to Vanguard) is 50% of the first 6%. That means you are GUARANTEED a 50% return on a portion of the money you save in your retirement plan. As an example, let's say you earn $4,500 a month before taxes and you elect to save 6% of it at a company the offers the match described above. You would save $270 of your own money and the company would give you another $135 (50% of $270) automatically. That's a huge return on your savings without investing in a single stock! By the way, by setting aside the original $270, you now have $405 that can be invested (each month) however you'd like (within the investment options provided in your 401k plan).

If your company offers a 401k you should take advantage of it by at least setting aside enough of your paycheck each period to get the full match. There’s nowhere else you can go to get that kind of guaranteed return. And once you get money into your 401k, we can help you decide how to invest it if you need help.

Thing Three

Just A Thought

“That man is richest whose pleasures are cheapest.” - Henry David Thoreau

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