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5 Tips For Investing Lawsuit Settlement Money

Whether you’ve sued your employer for a wrongful termination, you got injured in an auto collision that wasn’t your fault or you’ve slipped and fallen while you are out shopping, it is crucial to hold onto your settlement money for as long as you can. Your first impulse will be to spend all of it at once, but the wisest thing you can do is invest it. If you want to make the money last, possibly for a lifetime, you have to look at the funds not as a windfall, but as a nest egg that could secure your financial future.

Here are 5 tips for investing lawsuit settlement money:

Make sure that all your financial records are in tip-top shape. It is important to know how much you should invest and how much you should keep liquid for expenses, like paying off medical bills if you were injured or for bills if you were laid off. While it is smart to invest your settlement winnings, you typically don’t want to go all in, because you can end up not having enough for your immediate expenses. In this case it might be wise to consult with a financial advisor who can better estimate how much you should invest and how much you should hold on to.

May 9, 2013

Investing

Tips For Investing In Property

There are many ways you can invest your money, and each investment comes with its own set of risks and potential rewards. Stocks, for instance, can be extremely volatile. While some think that investing in property is very risky, it doesn’t have to be as long as you know what you are doing. Taking calculated risks can be very profitable. Below are some tips you can follow if you want to start investing in property.

Understand the risks involved. One thing I can’t emphasize enough is the importance of understanding what you are getting into. You will need to be aware that unexpected expenses will arise in the form of maintenance costs, repairs, and much more. So you will need to make sure you have enough money set aside to cover those expenses. You also need to be aware that you will not likely make a profit immediately. It could take a year or two before your rent monies actually amount to extra money in your bank account.

See the potential. For instance, if you are looking at property for sale in Turkey, the first thing you should do is not only focus on what is presently there – but envision the potential of what the property could be in the future. Think about what improvements you could make and make sure you are aware of your local area and local market. Is the property near water, near a good university, or near a popular tourist spot?

May 1, 2013

Investing

Four Tips For First Time Stock Investors

If you have never purchased stocks before, then you need to read this first. Yes, stocks are a great way to invest your money but they are still risky if you don’t know what you are doing. It is because of this that I recommend that you learn a little bit about stocks before you put a penny into them.

Before I get into the four tips for first time stock investors I just want to make sure that you have money in savings first. The reason I say this is because a stock investment should not be considered a savings account as they carry risk.

Don’t Buy Before Doing Research – Just like you wouldn’t buy a property without first doing your research, likewise if you don’t research a stock, then you won’t know the first thing about it. What most people don’t understand is that all stocks carry different risks and rewards and you need to know that in order to make the best decision. There are courses you can take to learn how to research companies. I highly recommend that you take a reputable course if you are planning on trading stocks for a living. If you are married, it’s a good idea to both take the course so that you will both understand the risks involved with investing.

April 29, 2013

Investing

Should You Save Or Invest To Fund Your Child’s Education?

Virtually every parent wants their child to get a good start in life and there is an overwhelming amount of evidence to support the fact that in order for that to happen, they need a college education. However, with the amount of college debt within the United States sitting at a whopping $1 trillion and the price of tuition rising 5-7 percent each year, it’s no wonder why a lot of parents are asking themselves if it is better to save or invest in order to fund their child’s college education.

As far as providing you with a concrete answer to that question, the best answer would probably be that it’s smart to do both. However, in order to help you to decide what will work best for you and your family; we’ve provided you with a few saving and investing options to consider.

Set up a 529 Savings Plan. A popular thing that a lot of parents do in order to prepare for their child’s education costs is to set up a 529 Savings Plan. Because it is a form of an investment account, the money that you put into it will grow about seven percent (in interest) each year. This means that if you had put $200 each year into the account once your child turned 5, that amount will have more than doubled just in interest alone by the time they are 18. Plus, this kind of savings plan is totally tax free.

April 21, 2013

Investing

5 Tips For Managing Your Income In Retirement

While most Americans spend a great deal of time thinking about retirement and planning out their investments to make sure they enjoy their golden years, most people fall far short of those goals. There are simply too many distractions early in life, and too many ways that even the best laid plans can take a wrong turn. Even if you did everything right, changes in the economy and the cost of living can leave you with the scary realization that you’ll outlive your savings account. The fact that most traditional pensions are disappearing doesn’t help matters, and it’s often too late to do anything about it when you finally do realize you’re behind the eight ball. But regardless of how bleak it may seem, there is always a silver lining. The sooner you get back in action the better. So here are five tips to help you manage your income in retirement.

You won’t be able to decide on a plan of action until you fully understand the reality of your situation. So start things off on the right foot by performing a detailed cash flow analysis. Most people fall short of their goals because they don’t take the time to understand exactly how much money they need to maintain a comfortable lifestyle during retirement. You can get things rolling by making an easy calculation. If you can save around 80% of your pre-retirement income you’ll be okay. But that doesn’t leave much room for vacations and fun purchases. So take a look at your monthly expenses, and compare that number to the money you reasonably expect to take in each month during retirement. This is the baseline you’ll take action on from here on out.

April 3, 2013

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