Tuesday, February 05, 2013

Lifetime Income Solutions

One thing my husband and I have agreed on is that we will learn tabout investing this year... and will also start making our money earn, however little or much it is.

But before we could start to  compare annuity rates or trade stocks, we both need to start with the basics. And here is a rough guide of how we're doing it:

1) Meet over and agree on a financial plan.
Couples looking to invest need to be aware of their cash flow first so they can see where budget can be slashed (expenses for dining out), which expenses are non-negotioable, and just how (if any) go into savings.

2) Brush up on business Math.
Be clear about the differences of time deposits and stocks and bonds. Re-learn how to compute for interests and dividends. You will need these skills when you finally meet with financial experts.

3) Read and research.
You can buy magazines, read investment books, join investment mailing lists and float questions on the internet. Just do your research. Where are people investing? How are they doing it? What are they doing it for? What is available to you where you are? And how much money and time should you really be alloting for what you plan to do?

4) Meet with experts.
You can consult with agents or financial managers or anyone from the bank.

5) Start slow.
For sure, we will learn as we go and will make a lot of mistakes first. So, best to start slow. As we gain confidence and more knowledge, we can take bigger risks and try smarter.

6) Keep learning.

7) Do not let expenses rise in direct proportion to rising income.

8) Keep investing.

Hopefully... others will have the drive and commitment to do the same. It just won't do to be parents without savings and investments.

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