•   
  •   
  •   

Offbeat Opinion: Here’s what smart rich people really do with their nest egg

09:58  12 july  2018
09:58  12 july  2018 Source:   marketwatch.com

Even younger workers worry about outliving retirement savings

  Even younger workers worry about outliving retirement savings Running out of money in retirement is a legitimate fear. But it's also one you can address.Load Error

A million nest egg has long been considered the benchmark for a secure retirement. Sadly, these days, it' s only a fraction of what you will really need. "Today' s generation of working people grew up in an era where their parents went to a mailbox, and a check appeared.

Smart people track their spending each month and look for hidden opportunities for savings that can be funneled back into their nest eggs . They brown bag it once a week or more. They rent DVDs more than they go to the movie theater.

  Opinion: Here’s what smart rich people really do with their nest egg © Eye Candy Images/Getty Images  

The opinions in this article are the author's, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

Most people think they’re above average in intelligence, relationship status and professional achievement. Social scientists call this “illusory superiority.” My business partner Scott Puritz, has found the one area where even above-average people, objectively smart, rich, successful professionals, seem to wave the white flag and admit to not understanding — money and investing.

“One of the most shocking things is the low-level financial literacy throughout our culture,” Puritz told the Washington Post. “It’s independent of education. Doctors, MBAs, corporate executives are incredibly competent in everything they do. But when it comes to investing, you run into this cauldron of mostly negative emotions, embarrassment, frustration, guilt. It leads to paralysis.”

Wanda Barzee denied parole in Elizabeth Smart kidnapping

  Wanda Barzee denied parole in Elizabeth Smart kidnapping Wanda Barzee, convicted for her role in the kidnapping of Elizabeth Smart, has been denied parole. The Utah Board of Pardons & Parole announced on Monday that Barzee would be given another parole hearing in 2023. It would be ahead of the termination of her prison sentence to determine if she has completed any mental health treatment.Barzee, 72, was convicted of conspiracy to commit kidnapping in connection with the 2002 abduction of Elizabeth Smart. Barzee’s husband, Brian David Mitchell, was convicted of breaking into the Smart family home and taking then-14-year-old Elizabeth captive for nine months.

You can try adopting the habits of super rich people and see how it will help you save money. Truly smart and successful people control their expenses and don’t spend their money on useless things. -New habits really did completely change my life for the better.

Knowing that you're prepared for what may happen if things don't go exactly the way you expect with your nest egg . "In retirement, your savings becomes your paycheck, so my wealthy clients are interested in 'pre-experiencing' their financial The rich and charity: They're gifting in a tax- smart way.

Sound like you? If so, don’t worry. You’re not alone. Two-thirds of Americans can’t pass a five-question financial literacy test, according to FINRA, the industry-run regulator that oversees stockbrokers.

And that’s because the fundamentals of finance are boring, and aggressively so. To understand it you need to grasp the interplay of money and time, and that’s just hard for humans to do. Both money and time are abstractions. Figuring out how they relate is a real challenge.

As Scott explains, the outcome is that even people with advanced degrees and professional success can fail at building a nest egg. And they fail, interestingly, in two distinct ways.

Street education

One group tells themselves that they don’t understand money and delegates the responsibility to a professional. They get “a money guy” who seems to be capable of investing their savings and just forget about it for a few decades.

Stork flies off with phone tracker, charity gets $2,700 bill

  Stork flies off with phone tracker, charity gets $2,700 bill Poland's EcoLogic Group wanted to study a stork's migration pattern. The stork and the tracker disappeared, but the SIM card was placed into a phone that made 20 hours worth of calls.But then, after the stork flew 3,700-plus miles, nestling somewhere in Sudan's Blue Nile Valley, it disappeared. And so did the tracker affixed to it. Not for long, though: Someone in the Sudan found the mobile device and took out its SIM card, placing it in a phone before racking up 20 hours worth of calls.

Many people in that group are already retired, and their average age is 62. He added: “The idea of a millionaire being someone who is really rich , that goes back to the Roaring ’20 s and the Withdrawing 4 percent of a nest egg each year used to be a standard formula but is no longer considered a

Letting the Nest Egg Numbers Speak for Themselves. Still not ready to ramp up for retirement? “I tell people to use every retirement calculator they can get their hands on,” says Michele Clark, a CFP® We’ve updated our Privacy Statement to support new EU data protection laws. Click here to learn more.

A second group does get a bit more educated, but it’s largely a street education. They open a trading account, plunk down a few thousand bucks and start hunting for stock tips.

Maybe the neophyte trader makes a bit of money or maybe he loses a bit, but he usually gets bit by the market bug and stays with it, buying and selling on his own with no help at all.

Both approaches are extremely risky, for different reasons.

The first group, by abdicating responsibility for their own money, can fall victim to scams. It happens all the time. Often, though, they get reasonably good investment help but pay tremendously high fees for what turns out to be average long-term returns.

The fees, of course, absolutely devour those returns. The typical investor pays 1% for investment advice and another 1% in fees for mutual funds bought in their name.

The result: One-third and up to one-half of investor gains is absorbed by fees. The “money guys” take zero risk (it’s not their money, it’s yours) but nevertheless get a huge reward.

Roku Made Wireless TV Speakers And They're Actually Kind of Great

  Roku Made Wireless TV Speakers And They're Actually Kind of Great Better streaming sound quality without all the wires and gear.The duo are slightly smaller than a pair of bookshelf speakers. They include a power cord but are otherwise wireless, connecting to your TV over Wi-Fi and your phone over Bluetooth. During a demo, they put out ample sound to fill out a decent-sized living room. The speakers support voice search via the included remotes and will roll out software to optimize and normalize the sound range coming from your set (no more too-quiet movie dialogue and too-loud commercials).

Baby Cuckoo Bird Hard Effort to Get Rid of Other Eggs in His Nest - Продолжительность: 5:38 Dr. Hector Linn 48 810 просмотров. Bird vs. Lizard | Real Angry Birds - Продолжительность: 2:38 Nat Geo WILD 7 355 580 просмотров.

Rich people follow their passion. “To the average person, it looks like the rich are working all the time,” Siebold says. “But one of the smartest strategies Really Josiah, there was no money in Africa before the Europeans landed here with their big ships and Africa was doing well. so that statement about

The second group, the emboldened traders, also can fall victim to scams. Penny stocks, illiquid investments, and highly leveraged strategies are just a few examples.

Mostly, though, amateur traders fall victim to the DALBAR effect, named for the market research firm that tracks how dramatically individual investors underperform the stock market over time.

This happens because the small investor thinks he knows what he’s doing. So there’s lots of buying and selling.

Sweet spot

The extra effort rarely pays off. Over the 20 years ending in 2017 the S&P 500(SPX)  — the broad index of large U.S. stocks — returned 7.2% a year. That return is on track to double a nest egg every 10 years.

In contrast, DALBAR finds, the average individual investor saw a return of just 2.6%. At that rate, it takes 30 years to double the balance in an investment account.

Given the risks, what do smart rich people actually do? The key is to lower your costs, be consistent in your investment process, and of course to save enough to build a nest egg in the first place. If you can manage that, there’s a solid middle ground between doing nothing and doing too much.

The smart home of tomorrow will call 911 for you

  The smart home of tomorrow will call 911 for you Noonlight is working with Apple, Google and Amazon to give smart devices a direct line to emergency services.That's the thinking behind Noonlight's push to put its personal safety app into everything from smart speakers to smart smoke detectors. Because as company founder Nick Droege put it, "You shouldn't have to press a button to get help if you're having a seizure.

Here are 13 clever ideas. 1. Keep investing Potentially the smartest move seniors can make these days is to continue investing well into their retirement. It' s easy to make your nest egg last long if it keeps growing

Here ' s How You Can Maximize Your Returns, Without Risk. An insane card offering 0% APR until June 2019. If you really want to increase your chances of doubling your nest egg by age 65, focus on saving more . Related: Investing smart in a rocky market.

The sweet spot is what we call “portfolio indexing,” a form of low-cost portfolio management that harnesses the stock market’s propensity to rise over time and lets compounding do its magic.

The final piece of the puzzle is to avoid emotional risk, the chance that you’ll end up selling when stocks fall. For many people, having a conflict-free financial adviser is the solution.

“Our front-line people are financial therapists,” Scott told the Post. “They need to be empathetic. People are very emotional about their money.”

Indeed they are. But there is an answer, which is educating yourself on how risk-adjusted investing works in the real world.

After a while, you will make peace with the process and grow to accept that an even keel makes for smooth sailing, no matter which ways the market winds blow.

Report: Marcus Smart Agrees to Four-Year, $52 Million Contract To Remain With Celtics .
Report: Marcus Smart Agrees to Four-Year, $52 Million Contract To Remain With CelticsIn a long-awaited deal, the Boston Celtics have re-signed Marcus Smart to a four-year, $52 million contract, according to Shams Charania of Yahoo! Sports.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!