Funding Your Retirement: The 401K and 403B Way Written by MomsBudget
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Your 401K portfolio should be chosen carefully, weighing age and risk factors. The older you are, less stock you should have in your portfolio. Many financial advisors suggest that your portfolio percentage of stocks should be your age subtracted from 100. Therefore, a 25-year-old' s portfolio should consist of 75% stocks. However, if you're not comfortable with that level of risk, then simply chose fewer stocks. Do remember this: over last century stock market has returned an average of 11% (this includes all wars and Great Depression). Your plan will most likely offer 4 to 7 investment options of mutual funds, stocks, bonds, etc. for your portfolio. My company provides 10 options of which I have chosen 5. Chose wisely and consider how much risk you are willing to take. Most of all, you need to be comfortable with your choices. If you need further assistance in choosing your investment options, check out www.morningstar.com or MorningStar books at your local library.
MomsBudget.com - Providing financial resources for women who happen to be mothers. Sign up for our newsletter by sending an e-mail to momsbudget-subscribe@topica.com
| | CREATING YOUR FIRST INVESTMENT CLUBWritten by Thomas A. Hilton, Jr.
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keep our club rather small. At least 4 of 7 were already investors - at least they already had their own personal brokerage accounts. Once, we agreed on number of members, I made suggestion that since we were focusing on strategies of my eBook that we make it part of bylaws that we use only those strategies and no others to avoid any arguements later on. I also impressed upon idea that we treat this investment club a little different than most other clubs. I wanted to prove awesome power of these strategies, so I suggested that we only make a one time investment rather than making regular monthly contributions. We would allow a simple math equation to determine just how much we would invest up front. We chose Charles Schwab as our broker and because they have a minimum amount of $5,000 to open an account, we agreed that we would all invest a one-time $715.00 per member upon our second meeting. Next, we chose a name for our investment club. So of course very first official investment club based soley on strategies of this eBook was born - "Chosen Few Investment Club", an appropriate name for our group. The only other item we needed was to apply for clubs own Federal Tax ID number or EIN# from IRS. Once I received number in mail, only thing left was to choose officers of club and open account under "Investment Club Account Agreement" with Charles Schwab & Company. Our investment club is registered with IRS as a general partnership and each member will be required to be responsible for his portion of any capital gains tax at end of year, as club will file one form stating how capital gains are distributed. Each member will receive a form called a K1, very similar to a 1099. Each member will file information from that K1 with their personal 1040 tax return. So, as you can see - actually forming your own investment club is rather simple once you layout everything you must do and agree upon early into venture. 7 Easy to Follow Steps To Creating Your Own Club 1. Choose your members carefully 2. Agree on size of club 3. Establish bylaws for club 4. Choose a name for club 5. Apply for your clubs Federal Tax ID number 6. Open your clubs brokerage account 7. Treat club as a serious partnership, keep records, meet regularly and enjoy experience of learning to invest as a group. Because this is our first official investment club based on strategies of eBook. I'll keep you all informed in upcoming issues as to our overall gains and networth. In fact, I'll more than likely add a section to this newsletter appropriately named for updated status of club.
Thomas A. Hilton, Jr., is an individual investor who loves teaching others how to make over 100% returns in the stock market using entrepreneurial investor techniques. http://www.entrepreneurial-investor.com Visit today and sign up for his ezine "Short Term Profit News".
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