What is the best way for someone over 50 who has had their retirement wiped out by medical bills start again?
Answers | 3
You need to start as soon as possible . I suggest you to sit down with an adviser whom you trust and do financial analysis and start as soon as you can. You have only 15 years or max 20 years if you want to work to age 70 (possible should you).
I hope all those medical bills have improved your health? I propose we get together on putting your finances in good health.
We get this one quite often. We use the Rule# 1 strategy which means don't lose money. Winnie &
Ebrahim have offered great suggestions. As an Investment Manager (IM) I have the ability to dig deeper into this by also looking at the other side. What are you getting in return for those contributions or simply what is your ROI? Would getting a higher rate of return with lower risk be important for you?
Here are some thoughts from my friend Charlie Munger:
Charlies Munger's 10 Rules For Successful Investing:
1). Live Below Your Means - Munger notes that its very important to spend less than your income, especially when you are starting your career. Invest the excess funds wisely. Munger said that the hard thing to do is to accumulate your first $100,000 and the first million is the next big hurdle.
2). Understand Your Risk Tolerance - Every Investor needs to know the level of risk that they can take. Losses are ineviable and investors must follow an investment strategy that fits their risk tolerance.
3). Research Opportunities - Investors must be able to process the vast amount of information and learn how to evaluate the risk and rewards of potential investments.
4). Invest For The Long-Term - Volatility has never been a big concern to Munger, instead it should be welcome by long-term investors, since it creates the opportunity to increase your investments at lower prices in the short-term. Invest for the long-term and compounding will do the rest.
5). Funds Are No Substitute - Investors are oversold on the benefits they receive from money managers. Total return from Wall Street money managers are eaten up by transaction costs, taxes, and fees.
6). Patience, Coupled With Decisive Action - Excellent investment opportunities are few and far in between. Investors must continually search and evaluate investment opportunities. You have patience when looking for investment opportunities since you will reject 99 out of 100 opportunities that cross your desk. When a great opportunity crosses your desk, act decisively, and don't waste time overthinking it.
7). Tax Planning - Taxes and tax planning play a major role in wealth accumulation.
8). Love The Process - You must love the evaluation and investment process since it requires a lot of work.
9). Pay A Reasonable Price - While value is important, investors should buy good businesses that are in sectors that exhibits favorable economic conditions. Good businesses will grow in value over time.
10). Choose Good Partners - Every investor relies on advice from others when making investment decisions whether they are investment advisors, brokers, newsletters, friends, or business partners.
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