Despite the fact that I am not an 메이저파워볼사이트 가입 investing counselor and never claim to be, my clients continue to ask me how they may better plan for retirement. Should I invest in an IRA? Should I contribute the maximum amount to my 401(k)? Should I increase my contributions to my profit-sharing plan or my pension plan? What should I say to them? You might as well put your money in the Powerball!
None of them are smart investments, contrary to common perception. Why? They all require placing money into an investment product over which they have little influence in terms of investment and timing, and the majority of individuals choose Mutual Funds as their commitment under these plans for a variety of reasons. In fact, it would be a better idea to put your money into the Powerball.
Really? Is the Powerball a good investment? Do you think I’m crazy? Is it worth it to risk my retirement savings in a congress game of chance when I have a little chance of winning? Where are millions of others betting in the hopes of winning the big one? Where the majority of the money goes to someone else and there’s a good possibility I’ll lose some or all of it?
Wait a minute, are we discussing the 검증된 메이저파워볼사이트 Powerball or Mutual Funds now? Hmm, a government-sponsored competition with a slim chance of winning. Sounds a lot like a 401(k) or IRA Mutual Fund investment. What are my prospects of retiring on Mutual Fund investments, after all? Actually, it’s not that high.
On my way to work a few years back, I was listening to a financial show on the radio. The interviewer was questioning a representative from a big mutual fund about the fund’s performance. For the previous two years, the Mutual Fund had increased in value by an average of 20% every year, according to the Rep. However, when the interviewer inquired about the average return on investment in the Fund, the Rep stated that the typical investor had lost 2% every year. Why? Due to the timing of entering and exiting the market. Compare that to the Powerball, where everyone knows the precise odds of winning and the exact prize amount!
But what about the significant tax benefits of investing in a 401(k) or an IRA? That’s right! Get a tax break when you’re young and in a low tax rate so you can pay taxes on the money you withdraw when you’re older and in a higher tax bracket? That is, indeed, a terrific deal. Consider the difference in tax rates on capital gains and dividends if you don’t have a 401(k) or IRA against regular income tax rates on profits when you withdraw them from a 401(k) or IRA.
So you’ve decided to invest 메이저파워볼사이트 도메인 only in Mutual Funds outside of your 401(k) or IRA? Again, I’m mistaken. Even though you don’t see the money, mutual funds generate capital gains taxes when the fund managers exchange them. Even if the Fund’s value has decreased, you must pay taxes! What about the opportunity cost of the money you’re paying in taxes now that you could have put into anything else? At the very least, if you win the Powerball, you’ll know exactly how much tax you’ll have to pay and you’ll only have to pay taxes if you win.
Yes, you argue, but the Powerball is a game of chance, and I have no choice in whether I win or lose. You are correct. The Powerball is a game of chance. A Mutual Fund, on the other hand, is. You, like the Fund Manager, have no influence over the stock market. When the market falls, so does your Fund. When you play the Powerball, you are at least aware that you are gambling. The government, financial institutions, and your employer are not advising you that playing the Powerball is a smart investment. And, unlike your 401(k), your employer is unlikely to match the amount you invest into the Powerball (k). Nobody is lying to you about the Powerball being a game of chance, but people in positions of power are lying to you about the odds of success in a mutual fund!
But, you say, isn’t it true that a Mutual Fund has a higher probability of generating money than the Powerball? Hardly. There’s a better probability of losing all of your money in a Mutual Fund than there is of losing all of your money in the Powerball. However, you will never win large with a Mutual Fund. In reality, by constructing a “balanced portfolio,” Mutual Funds are meant to 사설 메이저파워볼사이트 reduce your returns. This may be acceptable if they could reduce your market risk. The difficulty is that no one can reduce market risk without sophisticated hedging methods that aren’t often employed in mutual funds. At the very least, the Powerball gives you a chance to win large. And you can sleep well at night since you aren’t concerned about your odds of winning dwindling overnight due to events in Tokyo.
You claim you don’t like the fact that the majority of your Powerball winnings go to government initiatives. Where do you believe the majority of your Mutual Fund’s earnings go? No, not to support government services, but to finance the retirement of your financial adviser and mutual fund manager? You bear all of the risk and invest all of the money, but the Mutual Fund management and your investment advisor receive the majority of the profits. At the very least, the monies raised by the Powerball go to good causes, like as the arts.
Of course, I would never encourage a customer to plan their retirement on the Powerball. But I wouldn’t encourage them to put their money in mutual funds. The Powerball is a lot more fun for 엔트리 메이저파워볼사이트 my dollar, and I know I’m gambling. However, if you want to retire quickly and richly, look into alternative investments and engage with someone who is ready to put in the time to assist you. Financial independence is possible for those ready to work and learn about it, but it is unlikely for those who choose to rely on riskier investment techniques like Mutual Funds.