Copyright © 2008 Ed BagleyWhen you understand that the average CEO in America makes 400 times what the average worker makes, you could get upset. When you have an environment where chief executive officers of companies can rack up a pitiful financial performance and still continue to rake in millions of compensation for being essentially incompetent, it is even more upsetting. What are we to do?Now imagine if you were a stockholder of that same company as well as an average American worker. Many employees do put a part of their 401K retirement investment funds into stocks of the company they work for, or another company. Now imagine that you are an Enron employee. Go ahead, get really upset.If you worked for Enron you would already know what I am about to share with you.Enron was an American energy company before its bankruptcy in late 2001. Enron claimed to be one of the world’s leading electricity, natural gas, pulp and paper, and communications companies, claiming revenues of $111 billion in 2000.Using the words “claimed” and “claiming” in the prior sentence was not an accident. Enron was about to explode. Enron executives had fooled a lot of investors. Even the prestigious […]
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Today more than ever, planning for your retirement demands that you stay ahead of the financial factors that shape our economy. With so many different types of investments to choose from, how does an investor determine the best path of wealth creation? Again, it is important to remember that every individual is different and that there is no one model that works for everyone. However, there are two underlying principles to consider when deciding which investment is right for you, Resources and Time.
Resources
On your path to financial freedom, the single most important factor to consider when evaluating your risk tolerance is the amount of money that you can afford to lose. Again, all investors are not created equal. By only investing money that you can afford to lose or afford to have tied up for some time, you won’t be pressured to sell off early because of panic or liquidity issues. Stated plainly, the more money you have, the more risk you are can afford. Take the example of Bob Millionaire who can afford to put $5,000 to $10,000 into his investment portfolio each month and has a net worth of over $1,000,000, […]
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As an entrepreneur, there is nothing more gratifying than being able to work from the comfort of your own home. While the internet offers a plethora of amazing opportunities, it is residual income that presents the most appealing benefit. And with retirement just around the corner, it is never too early to start earning your retirement income.One of the worst mistakes you can make is overlook how quickly retirement will be coming up. The longer you put off saving for retirement, the longer it will be before you can actually retire. If you intend on working your entire life, then this does not necessarily apply to you. But for most people, retirement is something to look forward to.The first thing you want to do is have a financial plan for your retirement. In order to prepare your self for what is to come and to help with your decision making you must have a plan. Without a proper financial plan, you will find yourself in financial trouble when it comes to retirement time. Luckily, residual income is a fairly easy way for you to start earning supplemental retirement income today.In case you […]
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