Observations on life
Twenty questions and answers
1. “I can’t afford to save.” It’s easy: Put savings first, and then figure out what you can and can’t afford.
2. “Where do I invest my money?” Low-cost stock index mutual funds. Start mixing in some bond funds as you close in on retirement. Also check out the target-date funds you’ll probably find in your 401(k) plan. If you’re a tad more of a risk taker, buy a few stocks with good dividend-paying records and build an income stream.
3. “I don’t make enough money.” Look for a better job, up your skills, get a second job, start a small side business, work overtime. Perhaps even collect scrap metal with that F-150 you just had to have. Yup, I’m being sarcastic.
4. “How much can I withdraw from retirement savings before retirement?” Do you mean how much should you withdraw? That money isn’t an emergency or vacation fund. It’s for retirement.
Read the next 16 questions on this link.