According to FINRA Rule 2340, general securities members must disburse account statements at least once every calendar quarter. The account statements informs you as an investor because you can evaluate the quarterly performance of your investments. Evaluating your investment performance requires you to consider your rate of return and your yield. Continue reading
Is your financial future safe?
Join us for a FREE investor education and protection community event to help you understand how your financial and lifestyle choices today can affect the quality of your life in the future.
WHEN: Tuesday, October 16, 2018
5:00 PM – 8:00 PM EDT
WHERE: Georgia State University College of Law – 85 Park Pl NE, Atlanta, GA 30303 Continue reading
Most Georgians are not ready for retirement. The Association for Financial Counseling and Planning Education released a study today finding that over 40 percent of Georgians believe that they aren’t ready for retirement and aren’t saving enough. It also found that 25% of the survey participants “have less than $5,000 saved or invested for retirement (not counting home value).” The full survey results are available here.
While it may seem daunting, there are steps that we can all take to prepare for retirement. That’s why the Investor Advocacy Clinic is partnering to help put on When I’m 65, an investor education event at Georgia State Law on October 16 from 5-8 pm. The event is free, so long as you register in advance here.
We hope you’ll join us on October 16.
By Hector Rojas, Spring 2017 Student Intern
If you have been following us throughout the week, then you know what the Military Saves campaign is all about. You know about a few of the goals Military Saves encourages service members and their families to save for, and you have learned some tips and strategies on how to save. To close out this series, I thought it would be helpful to answer some frequently asked questions that you may have asked yourself throughout this five part series.
- I am hesitant to take The Saver Pledge, because I do not want to share my personal financial information.
You do not have to share any financial information in order to take the pledge. Indeed, when you sign up to take the pledge, you will notice that no financial information is requested of you in order to take the pledge. Remember, the idea of the campaign is for you to commit to building wealth over time and encourage others to do the same.
- If I take the pledge, will I be bombarded with a lot of junk email?
When you take the pledge, you will notice that there are boxes that will subscribe you to receive additional information and savings advice. Unlike other websites that automatically check off these boxes, however, you will notice that these are not already pre-selected. Therefore, it is completely up to you to receive additional periodical information and advice to help you save. If you take the Pledge, however, you’ll receive monthly Military Saves E-newsletters that contain helpful savings messages. You can always unsubscribe at the bottom of the newsletter or contact Military Saves to modify your subscription and update your email information.
- Who can enroll in Military Saves?
According to Military Saves, Military Saves is a national campaign to persuade, motivate, and encourage military service members, their families & Department of Defense (DoD) associated personnel to save money every month, and to convince leaders and organizations to be aggressive in promoting automatic savings. The enrollment is open for everyone & it is very relevant for retirees and anyone affiliated with the military.
I hope that this five part series has been helpful to you and has motivated you to begin saving. Remember, that it is small permanent changes that matter. Also, remember that savings is about your well being for tomorrow and not today and that it will be worth it in the long run whenever there is an emergency, you approach retirement, or just want to treat yourself to a brand new car.
It has been my honor to write about Military Saves Week for our servicemembers. On behalf of the Georgia State Investor Advocacy Clinic and myself, we salute and thank you for your service! Below you will find some additional resources to answer any remaining questions you may have about Military Saves Week.
For more information about Military Saves, click here.
For more information about taking the pledge, click here.
For more information for savers, click here.
For more information for organizations and how they can get involved, click here.
For more information about the campaign and the team behind it, click here.
By Hector Rojas, Spring 2017 Student Intern
Now that we have discussed what the Military Saves Pledge is all about and what types of goals Military Saves encourages service members to save for, in part four of this five part series, we will discuss how to save. Here are five saving strategies provided by Military Saves.
- Save for Emergencies
Consistent with our last post, this is the campaign’s number one focus. Having an emergency fund of anywhere between $500 to $1,000 dollars can come in handy when life gets hectic and it is the difference between those who manage to stay afloat and those who are sinking financially.
- Pay off High Cost Debt
As mentioned in part three of this series, debt is expensive. According to Military Saves, Americans spend well over $75 billion a year just on credit card interest and fees. That means that families who revolve credit card balances pay an average of $1,500 a year in interest and fees. If they saved that $1,500 in an account with a five percent yield, in 40 years they would have nearly $200,000! Therefore, the campaign says that the best investment most borrowers can make is to pay off consumer debt with double-digit interest rates.
- Save automatically using an allotment with myPay
According to Military Saves, saving automatically—through an allotment or automatic transfer of funds—to a short-term or long-term savings account is the best way to save. Why? Because you don’t have to think about it. Set it and forget it because it’s automatic! So, whether it comes to saving for your emergency fund, paying off a debt or investing in your retirement, set your savings on autopilot today and don’t worry about it tomorrow!
- Participate in the Thrift Savings Plan
If you are Active-Duty Military or a Department of Defense (DoD) civilian employee you have access to the Thrift Savings Plan (TSP). The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. It was established by Congress in the Federal Employees’ Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans.
- Deploying? Take advantage of the Savings Deposit Program
According to Defense Finance and Accounting Service (DFAS), the DoD Savings Deposit Program (SDP) was established to provide members of the uniformed services serving in designated combat zones the opportunity to build their financial savings. A total of $10,000 may be deposited during each deployment and will earn up to 10% interest annually. You cannot close your account until you have left the combat zone, although your money will continue to draw interest for 90 days once you’ve returned home or to your permanent duty station.
On the final part of this five part series, we will discuss some frequently asked questions about Military Saves and provide additional resources for you to learn more about the Military Saves Campaign so that you can be well equipped to take the pledge shall you choose to do so. Stay tuned.
To learn more about saving for an emergencies, click here.
To learn more about saving for debt, click here.
To learn more about how to save automatically, click here.
To learn more about Thrift Savings Plan (TSP), click here.
To learn more about the DoD Savings Deposit Program (SDP), click here.
By Tosha Dunn, Spring 2016 Student Intern
Should you? I mean, maybe. You have read my articles after all. Personally, I would say “no, no way, man.” But that’s my personal preference and not advice.
But okay, let’s say that you do want to go it alone and avoid fees and the worry of giving your coffee can of money to anyone else. What might you consider as a lone-wolf? First, I would want to really, really research the available products and strategies. I’ve discussed some, like the index fund and a 401(K). But there are other things available, like IRAs, and Roth-IRAs, and mutual funds, etc. Seriously, there are tons of financial products available, and some are even considered exotic, like derivatives. Then there are various things like stocks versus bonds, over-the-counter markets, and commodities futures markets.
I’ll leave the more exotic sounding items to you, but some of these are somewhat straightforward. An IRA, or an Individual Retirement Account, isn’t exactly an investment. It’s an account where you put your investments to benefit from tax breaks. This means that all of your products, like stocks, are placed in the account and grow in value without you paying taxes over the growth period (you pay when you cash out). However, you only get this benefit if you cash out before you’re age 59.5–yes, it is that specific. A Roth-IRA allows you to pay taxes as you go and cash out without a tax payment.
Overall, I would consider and investigate the topics I have mentioned–creating a diversified portfolio is a difficult trick that you may have difficulty managing on your own, but, one last time, it’s all about your risk tolerance. Not to mention, there are always index funds with low fee rates. Because fees can be a serious risk as well. Yes, PBS’ Frontline did an entire story on the issue of fees, and every investor will face fees whether at cash out or for every trade, and fees eat away at the overall value of your investments – even the SEC says there’s an impact. So take a deep breath, research, and make an educated decision. Investing isn’t easy, and it’s a major life decision because period 2 is closer in time than you think. You can’t always be in period 1. (If you’re interested in understanding period 1 and period 2 from an economic modeling sense: http://faculty.chicagobooth.edu/eugene.fama/research/Theory%20of%20Finance/Chapter%206%20The%20Two%20Period%20Consumption%20Investment%20Model.pdf).
By Tosha Dunn, Spring 2016 Student Intern
Now let’s move along to a term that I have been sort of dancing around: diversification. This is definitely a term that you may, or may not, hear but one that should be in your mind, even if it isn’t in your adviser’s mind. Simply, diversification is investing in a true portfolio, so your investments aren’t concentrated in a single industry or a single market. Instead, you have a portfolio that represents industries that balance one another out, meaning that if one goes down, the other goes up. The goal is mitigating losses.
If you have a properly diversified portfolio, you may have a certain percentage of money that is invested in risky stock, but you may balance that risk against the investment in an index fund (index funds are meant to return whatever the market returns are from an index, like the S&P 500, so the investments are pegged in a way to a stable market; there’s no promise of 100% returns). And an index fund isn’t the only option, again, the goal is to create a portfolio with industries and risks that counterbalance one another. You want to have a wave pattern where if one wave peaks, the other is at a trough, that way, you are receiving a steady flow of returns. Of course, that is assuming you invest in only two financial vehicles, but you get the idea–balance.
Diversification comes from the idea of Modern Portfolio Theory, which you can investigate to your heart’s content at: http://pages.stern.nyu.edu/~eelton/papers/97-dec.pdf, http://post.nyssa.org/nyssa-news/2011/12/harry-markowitz-father-of-modern-portfolio-theory-still-diversified.html, and http://money.usnews.com/money/blogs/on-retirement/2012/12/13/why-i-am-clinging-to-failed-investment-strategies.
All of these articles delve into different levels of detail regarding the theory and its future, but hey, the guy who came up with it was a Nobel Prize Winning Economist, so there may be something to it.