Money Talk With Slater

Making Money Across the Board

Monthly archives "February 2018"

How to Choose A Stock

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So you finally decided to start stock investing. You realize that a low P/E ratio is usually better than a high P/E ratio. Your portfolio should be diversified across numerous sectors, a company with plenty of cash on its balance sheet is better than one greatly burdened with debt. Analysts’ suggestions must always be taken with a grain of salt. Now that you have all the basics of investing mastered, and perhaps even researched the more complex concepts of technical analysis, you are ready to choose your stocks.

But hold up! With thousands of stocks to pick from, how do you go about really picking an equity investment? Pouring over each income statement and balance sheet to see which companies have a favorable net debt position and are enhancing their net margins is an unreasonable feat. Moreover, picking an investment based just on the criteria inputs of a stock screener is prone to error and does not make a full representation of the company. Finally, simply coat tailing investors will typically not assist you in finding any ten baggers as fund managers tend to focus mainly on safe blue chip stocks.

The first step to actively picking out a stock from the sea of available alternatives is to decide what the purpose of your portfolio is. Investors concentrate on capital preservation, capital appreciation requirements, and income. Income-oriented investors will usually concentrate on low-growth businesses in sectors like the utilities.

Though other options like master limited partnerships are also available. Those who have a low risk tolerance and are primarily concerned with capital preservation tend to invest in solid blue chip corporations. Investors who are seeking capital appreciation should look at businesses of life cycle stages and ranging market caps. Whatever your goal is with

How Much You Need to Retire at 55

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If you would like to retire at age 55, there are a couple of things you will need to think about that a person who retires later will not have to consider. Below are a few things to consider if you are serious about planning for an early retirement.

Longevity

If you retire at 55, supposing you will have an average life expectancy, your assets need to produce income for a longer period than a person who retires at 65.

It means you need to create an exact projection of what you think you will spend yearly. Then you can compare that to your income sources for retirement you feel you’ll have ready for you.

Social Security doesn’t begin until age 62. Also, there are restrictions and penalties for getting to your retirement money before 59 1/2 .

What this means is that if you want to retire at 55, you must have money or have a way to get it. One source of money won’t cut it. One choice you might think about is using 72 payments to take out from your IRA.

Medicare coverage won’t begin until 65. If you are thinking about retiring at 55, make sure you will have a solid health insurance coverage that you can depend on until you can get Medicare.

Filling Up Your Time

An long vacation sounds nice, but some find it isn’t as satisfying as they thought it would be. When considering early retirement, give real thought as to what you’ll do with your money and your time. Getting serious about a hobby or consulting are ideas.

You could volunteer or help raise the grandchildren. If you decide retiring at 55 might not work for you, move the age up to 62. For many, this is doable. Just make sure that you are emotionally and financially ready when you decide to do so.