10 Investing Rules of Thumb 👍 | Brian Feroldi posted on the topic | LinkedIn (2024)

Interesting read on 10 Investing Rules of Thumb which will help you to make smart finance decisions...

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Perfect Rules of investment

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Pretty nice cheat sheet here about investing!

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10 Investing Rules of Thumb 👍1: Rule of 72How much time in years it will take for your money to double. Divide 72 by the interest rate at which you are compounding your money.2: Rule of 114How much time in years it will take for your money to triple. Divide 114 by the interest rate at which you are compounding your money.3: Rule of 144How much time in years it will take for your money to quadruple. Divide 144 by the interest rate at which are compounding your money.4: Rule of 70How time it will take in years for your buying power to erode. Divide 70 by the current inflation rate to see how many years it will take for your purchasing power to half.5: The 10, 5, 3 RuleYou can expect to earn 10% annually from stocks, 5% from bonds, and 3% from cash.6: The 3-6 RulePut away at least 3-6 months worth of expenses and keep it in cash. This is your emergency fund.7: The 110 RuleSubtract your age from 110. This is the amount of your portfolio you should keep in stocks. The remainder should be in bonds or cash.8: The 15% RuleSet aside at least 15% of your salary for retirement.9: The 4% RuleThis is the amount of your portfolio you can withdraw each year during retirement.10: Age x Income / 10 RuleThis rule shows how good you are at building wealth. Multiply your age times your pre-tax income and divide by 10. This is what your net worth should be.What "rules of thumb" do you use to invest?Follow me Brian Stoffel for more content like this***P.S. Want to master the basics of accounting (for free)?I created a 5-day, email-based course that explains the Balance Sheet, Income Statement, and Cash Flow Statement in plain English.Check it out here (It's free) → https://lnkd.in/eKbRV7g6If you found this post useful, please repost ♻️ to share with your audience.

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Welcome to our guide on the top fundamentals for successful investing.Whether you’re planning to build a nest egg, investing for your children or planning for a wealthier retirement this blog will help guide you as to the most successful investing strategies to adopt.Investing serves as a mechanism for amplifying your wealth. It can assist you in expediting the repayment of your mortgage, augmenting your retirement savings or safeguarding your child’s financial future.However, before you invest your money, be ready for a long-term engagement.Though your money is safe in a bank,fluctuating interest rates and inflation may diminish its value over time. “Consistent monitoring of your investment portfolio is crucial to ensure that it aligns with your financial objectives and you’re not excessively exposed to risks. Rebalancing is an essential practice in this process. It involves adjusting the allocations ofdifferent assetswithin your portfolio to maintain the ‘weight’ or proportion that best matches your initial investment goal.”You can read the full article here:https://lnkd.in/eKpU9B7a#investingtips

Brochures and Literature - Beginners Guide to Investing♟️💲👓🎯Investing your money for the first time is a big step. In this guide, our experts will help you get off to the best start.Everyone has a financial goal. Whether it be saving up for a holiday, a new house or creating a retirement nest egg, we all have aspirations that need financing.Most people begin by putting some money away every month into a savings account. Usually, it is only when we have built up an emergency pot, and have a bit more disposable income, that we start thinking about how we could make our savings work harder. This is when saving becomes investing.

In “Just Keep Buying: Proven Ways to save money and build your wealth”, Nick challenges much of the conventional wisdom in personal finance and investing. He uses data and evidence to answer some of the biggest questions that people face when it comes to money.Here are 7 of the many insights you will glean from the book:1. SAVE LESS THAN YOU THINK. Maggiulli shows that saving too much can actually be detrimental to your long-term wealth, as you miss out on the power of compounding and the opportunity to invest in income-producing assets. He provides a simple formula to calculate how much you need to save based on your income, expenses, and desired retirement age.2. DON'T TRY TO TIME THE MARKET. Maggiulli explains why saving up cash to buy market dips is a losing strategy, as you are likely to miss the best days of the market and pay higher taxes on your gains. He also debunks some of the common myths and indicators that people use to predict market movements, such as the yield curve, the CAPE ratio, and the presidential cycle.3. SURVIVE THE CRASH. Maggiulli reveals how to prepare for and cope with market crashes, which are inevitable and unpredictable. He advises readers to diversify their portfolio, rebalance regularly, and avoid panic selling. He also shares some of the psychological tricks and tools that can help investors stay calm and rational during turbulent times.

📈📉 Dollar-cost-averaging can be a great way to invest long-term when you want to worry less about the volatility of the market, invest with cash flow in mind, put a plan on "auto-pilot" and lessen the worry about “is this the right ‘time’ to invest”. ♟️ This strategy tends to work well for those BIG, long-term goals like retirement and college savings. These are often harder goals to pinpoint the “how much do I need” question as there are so many years (often decades) to build, and countless variables in the mix. But by starting early with a set amount that can fit your budget, DCA can amplify your strategy as you are always buying into your investment (whether up or down), and by doing so, tends to lower your average cost over time. 🧐 To discover some of the comparisons of dollar-cost averaging to lump sum investing, see attached a quick article running through the pros and cons of each. And to see if it’s a good strategy for your situation, give us a call at 573-693-1775.https://lnkd.in/g2m6QgND

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Are you in your 20s or even younger? Here's a secret to securing your financial future: start investing NOW! 💼💰Why wait until you're older to build wealth when you can get a head start today? Here's why investing young is crucial:1. Compound Interest Magic: The earlier you invest, the longer your money has to grow. Thanks to the power of compound interest, even small investments can turn into significant wealth over time.2. Risk Tolerance: When you're young, you can afford to take on more risk because you have time to recover from any potential losses. Take advantage of this by investing in growth assets like stocks, which historically offer higher returns over the long term.3. Achieving Financial Goals: Whether it's buying a home, traveling the world, or retiring early, investing early sets you on the path to achieving your financial goals faster.If you have questions about investing, reach out anytime for any helpful informationhttps://lnkd.in/ekE9Xuyg