Friday, March 2, 2007

Are You apart of the Young, Hot and Broke Group?

well I think at some point most people are apart of that group. You leave college thinking you were going to change the world. Remember you had all these ideas that was going to make you an instant millionaire. I think college creates an atmosphere that you will be financially secure and will be on top of the world when you graduate. Now that you have graduated you should not give up you can still make those dreams come through.

We all Know that saving is hard to do sometimes when you have bills to pay but, investing in your company's 401 k is one sure bet that you will become financially secure at least at retirement. If your company offers a 401k plan you should take advantage of it. The 401k is a retirement account offered by companies. what the 401k does is let you save a portion of your income into different investment funds such as stocks, mutual funds, and bonds, (for more info see www.fidelity.com) and your company usually match your contribution up to five percent. take for example a person in their 30s who has a balance in their 401k of 33, 000, will end up with over 570, 000 at the age of 65 give and take the money is not withdrawn before retirement. If the money was withdrawn today it would be heavily taxed.

If Your Company does not offer a 401k plan don't worry you can open an individual retirement account (IRA) which allows you to save of retirement,(for more infor see www.fidelity.com).

I know when you are young you want the lastest shoes, cloths and the latest in cutting edge technology, and that is fine. but do not...... do not apply for more than three credit cards from a major financial institution. Ignore the ones that come in the mail, the best way to apply for one is by calling your financial institution and speak to a representative about getting one and be sure to discuss the interest rates and fees if any.

Remember all the sleepless nights you had in college, pulling all nighters studying for exams, well now that you have graduated you can must make your degree work to your advantage, start your own consulting business online, or physical with the knowledge you aquired, there is no greater gift than knowledge.

2 Comments:

Anonymous said...

i like the concept of your blog, you just need to add more content to it. join different communities to try to grow your audience.

Kerry-Ann said...

Good article Richard, one thing I am not in the US I am in London so what sort of investments do you think I need to make. We have pension funds but over the past few years a number of people found that they have lost their pensions because the company holding it did not invest wisely or even some companies are no longer offering pensions. What about bonds can you explain a bit more about having investments in bonds in the long term?