Saving and investing for your future involves managing debt responsibly, saving money, and choosing appropriate investment products based on your goals and risk tolerance. It is important to pay bills on time, maintain a good credit score, establish an emergency fund, and start investing as early as possible to benefit from compound growth over time. When investing, consider low-cost index funds, target-date funds, and tax-advantaged retirement accounts to build a diversified portfolio. Be wary of potential fraud from unsolicited offers and do your research before investing with any individual or in any product. Resources are available to check licenses and filings to avoid investment scams.
Saving and investing involves setting aside money for both short-term and long-term goals. It is important to save enough money to cover emergencies as well as bigger purchases. Investing allows savings to grow over time through vehicles like stocks, bonds, and mutual funds. The earlier an individual begins the process of saving and investing, the more their money can benefit from compound growth and market returns over decades. Proper asset allocation and diversification help manage risk for investors.
The document provides an overview of a three-part seminar on looking after one's financial future. Part 1 covers company valuations, savings schemes, and optimizing taxes. Part 2 focuses on portfolio construction and analyzing individual companies. Part 3 discusses portfolio mixes, selecting index/bond funds, and introducing portfolio analysis. The overall seminar aims to help participants understand investing concepts and make informed financial decisions.
Saving regularly, even small amounts, and allowing interest to compound over many years is the key to becoming a millionaire through investing. The document recommends starting a savings plan as early as possible, ideally in one's 20s, and contributing regularly to take advantage of compound interest. It describes different investment vehicles like savings accounts, CDs, bonds, stocks and mutual funds, and notes the average annual returns and risks associated with each. The main message is that diversifying investments and maintaining a long-term perspective are important for achieving financial goals.
This document discusses creating a retirement income and investment strategy. It emphasizes the importance of planning before investing and outlines 4 steps to constructing a personalized strategy: 1) Estimate retirement expenses, 2) Identify sources of retirement income, 3) Determine tolerance for income variance, and 4) Construct the strategy with a financial professional. A case study example is provided to illustrate how these steps are applied for a hypothetical retiree. The key is to have guaranteed income sources cover essential needs and to work with an advisor to develop a customized plan.
This document provides information about financial services offered by Global Opportunities Network, including credit restoration, financial education, and business building training. It details the company's credit restoration and credit building services, which aim to improve credit scores and financial wellness. The document also outlines the company's multi-level marketing business opportunity, describing the compensation plan including direct commissions, bonuses, and potential for residual income and leadership positions.
This document provides information about financial services offered by Global Opportunities Network, including credit restoration, credit building, debt payoff programs, wills and trusts, identity theft protection, and financial education services. It details the various packages and pricing models, from standalone services starting at $199 to a full partner package for $87 per month. The opportunity includes direct commissions as well as a multi-level revenue sharing program. Services are designed to help customers improve their credit scores and finances through credit repair, education, and debt management tools.
The document outlines the services and business opportunity provided by Global Opportunities Network, which includes credit restoration, financial education, and identity theft protection services. It promotes becoming an agent or full partner to sell these services and build a business through recruiting other distributors. The compensation plan includes direct commissions, revenue sharing, bonuses, and potential leadership positions with higher pay based on sales volumes.
Saving and investing involves setting aside money for both short-term and long-term goals. It is important to save enough money to cover emergencies as well as bigger purchases. Investing allows savings to grow over time through vehicles like stocks, bonds, and mutual funds. The earlier an individual begins the process of saving and investing, the more their money can benefit from compound growth and market returns over decades. Proper asset allocation and diversification help manage risk for investors.
The document provides an overview of a three-part seminar on looking after one's financial future. Part 1 covers company valuations, savings schemes, and optimizing taxes. Part 2 focuses on portfolio construction and analyzing individual companies. Part 3 discusses portfolio mixes, selecting index/bond funds, and introducing portfolio analysis. The overall seminar aims to help participants understand investing concepts and make informed financial decisions.
Saving regularly, even small amounts, and allowing interest to compound over many years is the key to becoming a millionaire through investing. The document recommends starting a savings plan as early as possible, ideally in one's 20s, and contributing regularly to take advantage of compound interest. It describes different investment vehicles like savings accounts, CDs, bonds, stocks and mutual funds, and notes the average annual returns and risks associated with each. The main message is that diversifying investments and maintaining a long-term perspective are important for achieving financial goals.
This document discusses creating a retirement income and investment strategy. It emphasizes the importance of planning before investing and outlines 4 steps to constructing a personalized strategy: 1) Estimate retirement expenses, 2) Identify sources of retirement income, 3) Determine tolerance for income variance, and 4) Construct the strategy with a financial professional. A case study example is provided to illustrate how these steps are applied for a hypothetical retiree. The key is to have guaranteed income sources cover essential needs and to work with an advisor to develop a customized plan.
This document provides information about financial services offered by Global Opportunities Network, including credit restoration, financial education, and business building training. It details the company's credit restoration and credit building services, which aim to improve credit scores and financial wellness. The document also outlines the company's multi-level marketing business opportunity, describing the compensation plan including direct commissions, bonuses, and potential for residual income and leadership positions.
This document provides information about financial services offered by Global Opportunities Network, including credit restoration, credit building, debt payoff programs, wills and trusts, identity theft protection, and financial education services. It details the various packages and pricing models, from standalone services starting at $199 to a full partner package for $87 per month. The opportunity includes direct commissions as well as a multi-level revenue sharing program. Services are designed to help customers improve their credit scores and finances through credit repair, education, and debt management tools.
The document outlines the services and business opportunity provided by Global Opportunities Network, which includes credit restoration, financial education, and identity theft protection services. It promotes becoming an agent or full partner to sell these services and build a business through recruiting other distributors. The compensation plan includes direct commissions, revenue sharing, bonuses, and potential leadership positions with higher pay based on sales volumes.
This document provides information about financial services offered by Global Opportunities Network, including credit restoration, financial education, identity theft protection, will and trust services, and debt management. It details the various packages and pricing models, from individual services starting at $199 to a full partner package for $87 per month. The opportunity includes direct commissions as well as multiple levels of residual income and bonuses. Services are designed to help customers improve their credit scores and finances through credit restoration, education resources, and debt management tools.
University at Buffalo Webinar - DIY Wealth Book with Ripsaw Wealth ToolsStanleyKon
Stanley J. Kon, PhD explores concepts of his new book, Do-It-Yourself Wealth Management: Take Control of Your Financial Life!, using Ripsaw Wealth Tools. (RipsawWealth.com) We are all our own wealth managers, regardless of who you pay for advice and trade execution. Given the potential conflicts of interest, managerial risk and excessive fees, it is not difficult to do better for yourself than what most professionals can do for you. Even if you choose to pay a professional, it is still your responsibility to monitor them concerning suitable strategies and performance net of fees. Investment portfolios have a lot of moving parts with multiple risk dimensions. In this presentation, I will take you through a disciplined investment process for wealth portfolio construction, monitoring and revision involving many accounts and many investments with overlapping risk dimensions.
Financing a new venture requires understanding the different funding options available and their pros and cons. Most startups need funding to cover costs before generating revenue from sales. Common sources of funding include personal savings, bootstrapping, bank loans, SBA loans, crowdfunding, angel investors, and venture capital. Proper preparation is key, including developing financial projections and statements to demonstrate the funding need and viability to potential investors or lenders.
10 lessons from the financially fit millennial and gen xer (daniel grote's co...Daniel Grote, CFP®, BFA™
This document provides a summary of 10 lessons for financially fit millennials and Gen Xers. It discusses lessons like living within your means by following a 50/30/20 budget rule, not accepting credit card debt as normal, prioritizing savings like retirement accounts, understanding insurance needs, and knowing when to rent versus buy a home. It also provides tips on paying off student loans, maximizing retirement accounts like Colorado public employee plans, managing risk tolerance, and not prioritizing extra mortgage payments before other financial goals. The document is from a financial advising group promoting meeting with representatives to address specific financial questions or concerns.
This document provides an overview of a beginner's guide to wealth building workshop. It discusses starting a personal investment plan and contributing to defined contribution plans like 401(k)s to save for retirement. It emphasizes the importance of tax shelters and gauging your investment attitude. Sample budgets are provided to help with financial planning. The workshop also discusses creating a balance sheet to track assets and liabilities, and starting the savings habit by paying yourself first. Later sections cover various investment vehicles like stocks, bonds, mutual funds and their associated markets and indexes to consider for building an investment portfolio.
Key person protection is important for business continuity and to protect against financial loss in the event a key person dies or becomes critically ill. It helps minimize business interruption, ensures loan obligations are met, and protects startups and management buyouts that rely heavily on certain skills and relationships.
2016 Mark Barbash Financing Presentation Copy Colorado FINALMBEDC, LLC
This document provides an overview of economic development financing. It discusses understanding the business and project, identifying private and public financing options, determining any financing gaps, and structuring deals. Private financing sources include banks, venture capital, and capital markets. Public programs include direct loans, loan guarantees, tax-exempt bonds, tax incentives, and intermediary programs. The document outlines steps in the financing process and principles for working with private and public financing.
What's it like to work with The Independent Financial Group? Founding Principal Jim Lorenzen talks about how IFG may be different from other wealth management advisory firms.
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Pragmatic Steps to Managing Money Early in Your CareerPeggy Groppo
GW & Wade provides comprehensive financial services including retirement planning, investment management, tax planning, estate planning, and more. Their expert counselors create custom plans for each client based on their unique needs and goals. Services include income tax planning, cash flow analysis, charitable gifting strategies, education planning, and executive team services. Counselors help clients manage their investments and assets to stay on track with their financial plans over time.
This document provides information about a company that offers various financial services including credit restoration, financial education, and business training opportunities. It details the company's history and credentials. It then explains the services it provides, including credit restoration, credit reports, credit scores, and the differences between credit repair and restoration. The document outlines membership plans, online tools and resources for customers. Finally, it describes partnership opportunities for becoming an agent or full partner and earning commissions from sales and a business network.
The Generational Wealth Protection ServicesWilliam Moore
This document provides information about financial services offered by United Credit Education Services including credit restoration, credit scoring education, will and trust preparation, debt elimination services, and identity theft protection. It details the various packages available including standalone services and membership plans. A partnership opportunity is described where individuals can become agents or full partners to market these services and build a sales organization. Compensation includes direct commissions, revenue sharing, bonuses for customer acquisition and sales volume. The goal is to help customers improve their financial situation and for partners to achieve financial freedom through the business opportunity.
1) The document introduces John K. Bahr and his wealth management firm, which serves a limited number of clients through a personalized approach focused on communication, service, and education.
2) The firm provides a team of specialists to address clients' various financial needs, and offers services like charitable donations and investment management aimed at being trustworthy.
3) The document outlines common investor mistakes and emphasizes the importance of written goals, financial planning, and ongoing communication between clients and the firm.
The document discusses banking strategies and solutions for financial freedom, security, and retirement. It presents the Money Merge Account program as an alternative to traditional banking that can help eliminate debt faster through interest cancellation and optimize cash flow. The program aims to help users become their own bank by utilizing whole life insurance and other banking concepts to gain tax advantages and guaranteed returns over traditional investments.
Mini fund overview for investors - BetterCapital Real Estate FundBobby Sharma
A Better Way to Invest
Diversifying your portfolio to include real estate investments can be complex, time consuming and capital intensive. We designed Avestor from ground up to solve investor pain points and make it simple to build out a real estate portfolio.
The document summarizes Strongbrook's approach to empowering personal and financial success through three pillars: facilitated real estate investment, business ownership, and personal development. It outlines Strongbrook's services which include designing personalized game plans, educating on growth markets, identifying investment opportunities, and managing acquired properties. The document promotes Strongbrook's track record and ability to help clients build substantial residual retirement income through real estate within 5-10 years, compared to the traditional accumulation approach of working 30+ years and saving. It invites readers to access Strongbrook's team and investment opportunities by purchasing a MAP package.
This document provides an overview of various investment options ranging from low to high risk. It discusses the importance of saving and having an emergency fund. It explains differences between stocks, bonds, and mutual funds. Low risk options include savings accounts, CDs, money markets, and government bonds. Medium risk options are mutual funds, IRAs, real estate, and annuities. High risk options involve direct stock investing, futures/commodities, and peer-to-peer lending. The document also covers retirement planning, taxes, and diversifying investments to reduce risk.
We provide a business platform to
associates, which gives the support
and systems they need to build
strong businesses and create better
lives for themselves.
Many financial services companies focus on
only the wealthy few; thus many individuals
and families are grossly underserved.
There is an overwhelming need to help
middle-income individuals and families with
their finances, but there is an insufficient
number of companies that are willing to
help them.
Financial fridays financial planning assessment las vegas (2)simply_misti
This document contains information on various financial planning topics including retirement planning, tax planning, estate planning, investment planning, insurance planning, and education planning. It also discusses strategies, tactics, tools, and ensuring alignment with an organization's mission, vision, and values. Additionally, it provides comparisons of defined benefit plans versus Roth plans at different ages. The document emphasizes the importance of financial planning and getting comfortable with areas we have the least experience in.
End-to-end pipeline agility - Berlin Buzzwords 2024Lars Albertsson
We describe how we achieve high change agility in data engineering by eliminating the fear of breaking downstream data pipelines through end-to-end pipeline testing, and by using schema metaprogramming to safely eliminate boilerplate involved in changes that affect whole pipelines.
A quick poll on agility in changing pipelines from end to end indicated a huge span in capabilities. For the question "How long time does it take for all downstream pipelines to be adapted to an upstream change," the median response was 6 months, but some respondents could do it in less than a day. When quantitative data engineering differences between the best and worst are measured, the span is often 100x-1000x, sometimes even more.
A long time ago, we suffered at Spotify from fear of changing pipelines due to not knowing what the impact might be downstream. We made plans for a technical solution to test pipelines end-to-end to mitigate that fear, but the effort failed for cultural reasons. We eventually solved this challenge, but in a different context. In this presentation we will describe how we test full pipelines effectively by manipulating workflow orchestration, which enables us to make changes in pipelines without fear of breaking downstream.
Making schema changes that affect many jobs also involves a lot of toil and boilerplate. Using schema-on-read mitigates some of it, but has drawbacks since it makes it more difficult to detect errors early. We will describe how we have rejected this tradeoff by applying schema metaprogramming, eliminating boilerplate but keeping the protection of static typing, thereby further improving agility to quickly modify data pipelines without fear.
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This document provides information about financial services offered by Global Opportunities Network, including credit restoration, financial education, identity theft protection, will and trust services, and debt management. It details the various packages and pricing models, from individual services starting at $199 to a full partner package for $87 per month. The opportunity includes direct commissions as well as multiple levels of residual income and bonuses. Services are designed to help customers improve their credit scores and finances through credit restoration, education resources, and debt management tools.
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Financing a new venture requires understanding the different funding options available and their pros and cons. Most startups need funding to cover costs before generating revenue from sales. Common sources of funding include personal savings, bootstrapping, bank loans, SBA loans, crowdfunding, angel investors, and venture capital. Proper preparation is key, including developing financial projections and statements to demonstrate the funding need and viability to potential investors or lenders.
10 lessons from the financially fit millennial and gen xer (daniel grote's co...Daniel Grote, CFP®, BFA™
This document provides a summary of 10 lessons for financially fit millennials and Gen Xers. It discusses lessons like living within your means by following a 50/30/20 budget rule, not accepting credit card debt as normal, prioritizing savings like retirement accounts, understanding insurance needs, and knowing when to rent versus buy a home. It also provides tips on paying off student loans, maximizing retirement accounts like Colorado public employee plans, managing risk tolerance, and not prioritizing extra mortgage payments before other financial goals. The document is from a financial advising group promoting meeting with representatives to address specific financial questions or concerns.
This document provides an overview of a beginner's guide to wealth building workshop. It discusses starting a personal investment plan and contributing to defined contribution plans like 401(k)s to save for retirement. It emphasizes the importance of tax shelters and gauging your investment attitude. Sample budgets are provided to help with financial planning. The workshop also discusses creating a balance sheet to track assets and liabilities, and starting the savings habit by paying yourself first. Later sections cover various investment vehicles like stocks, bonds, mutual funds and their associated markets and indexes to consider for building an investment portfolio.
Key person protection is important for business continuity and to protect against financial loss in the event a key person dies or becomes critically ill. It helps minimize business interruption, ensures loan obligations are met, and protects startups and management buyouts that rely heavily on certain skills and relationships.
2016 Mark Barbash Financing Presentation Copy Colorado FINALMBEDC, LLC
This document provides an overview of economic development financing. It discusses understanding the business and project, identifying private and public financing options, determining any financing gaps, and structuring deals. Private financing sources include banks, venture capital, and capital markets. Public programs include direct loans, loan guarantees, tax-exempt bonds, tax incentives, and intermediary programs. The document outlines steps in the financing process and principles for working with private and public financing.
What's it like to work with The Independent Financial Group? Founding Principal Jim Lorenzen talks about how IFG may be different from other wealth management advisory firms.
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GW & Wade provides comprehensive financial services including retirement planning, investment management, tax planning, estate planning, and more. Their expert counselors create custom plans for each client based on their unique needs and goals. Services include income tax planning, cash flow analysis, charitable gifting strategies, education planning, and executive team services. Counselors help clients manage their investments and assets to stay on track with their financial plans over time.
This document provides information about a company that offers various financial services including credit restoration, financial education, and business training opportunities. It details the company's history and credentials. It then explains the services it provides, including credit restoration, credit reports, credit scores, and the differences between credit repair and restoration. The document outlines membership plans, online tools and resources for customers. Finally, it describes partnership opportunities for becoming an agent or full partner and earning commissions from sales and a business network.
The Generational Wealth Protection ServicesWilliam Moore
This document provides information about financial services offered by United Credit Education Services including credit restoration, credit scoring education, will and trust preparation, debt elimination services, and identity theft protection. It details the various packages available including standalone services and membership plans. A partnership opportunity is described where individuals can become agents or full partners to market these services and build a sales organization. Compensation includes direct commissions, revenue sharing, bonuses for customer acquisition and sales volume. The goal is to help customers improve their financial situation and for partners to achieve financial freedom through the business opportunity.
1) The document introduces John K. Bahr and his wealth management firm, which serves a limited number of clients through a personalized approach focused on communication, service, and education.
2) The firm provides a team of specialists to address clients' various financial needs, and offers services like charitable donations and investment management aimed at being trustworthy.
3) The document outlines common investor mistakes and emphasizes the importance of written goals, financial planning, and ongoing communication between clients and the firm.
The document discusses banking strategies and solutions for financial freedom, security, and retirement. It presents the Money Merge Account program as an alternative to traditional banking that can help eliminate debt faster through interest cancellation and optimize cash flow. The program aims to help users become their own bank by utilizing whole life insurance and other banking concepts to gain tax advantages and guaranteed returns over traditional investments.
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A Better Way to Invest
Diversifying your portfolio to include real estate investments can be complex, time consuming and capital intensive. We designed Avestor from ground up to solve investor pain points and make it simple to build out a real estate portfolio.
The document summarizes Strongbrook's approach to empowering personal and financial success through three pillars: facilitated real estate investment, business ownership, and personal development. It outlines Strongbrook's services which include designing personalized game plans, educating on growth markets, identifying investment opportunities, and managing acquired properties. The document promotes Strongbrook's track record and ability to help clients build substantial residual retirement income through real estate within 5-10 years, compared to the traditional accumulation approach of working 30+ years and saving. It invites readers to access Strongbrook's team and investment opportunities by purchasing a MAP package.
This document provides an overview of various investment options ranging from low to high risk. It discusses the importance of saving and having an emergency fund. It explains differences between stocks, bonds, and mutual funds. Low risk options include savings accounts, CDs, money markets, and government bonds. Medium risk options are mutual funds, IRAs, real estate, and annuities. High risk options involve direct stock investing, futures/commodities, and peer-to-peer lending. The document also covers retirement planning, taxes, and diversifying investments to reduce risk.
We provide a business platform to
associates, which gives the support
and systems they need to build
strong businesses and create better
lives for themselves.
Many financial services companies focus on
only the wealthy few; thus many individuals
and families are grossly underserved.
There is an overwhelming need to help
middle-income individuals and families with
their finances, but there is an insufficient
number of companies that are willing to
help them.
Financial fridays financial planning assessment las vegas (2)simply_misti
This document contains information on various financial planning topics including retirement planning, tax planning, estate planning, investment planning, insurance planning, and education planning. It also discusses strategies, tactics, tools, and ensuring alignment with an organization's mission, vision, and values. Additionally, it provides comparisons of defined benefit plans versus Roth plans at different ages. The document emphasizes the importance of financial planning and getting comfortable with areas we have the least experience in.
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We describe how we achieve high change agility in data engineering by eliminating the fear of breaking downstream data pipelines through end-to-end pipeline testing, and by using schema metaprogramming to safely eliminate boilerplate involved in changes that affect whole pipelines.
A quick poll on agility in changing pipelines from end to end indicated a huge span in capabilities. For the question "How long time does it take for all downstream pipelines to be adapted to an upstream change," the median response was 6 months, but some respondents could do it in less than a day. When quantitative data engineering differences between the best and worst are measured, the span is often 100x-1000x, sometimes even more.
A long time ago, we suffered at Spotify from fear of changing pipelines due to not knowing what the impact might be downstream. We made plans for a technical solution to test pipelines end-to-end to mitigate that fear, but the effort failed for cultural reasons. We eventually solved this challenge, but in a different context. In this presentation we will describe how we test full pipelines effectively by manipulating workflow orchestration, which enables us to make changes in pipelines without fear of breaking downstream.
Making schema changes that affect many jobs also involves a lot of toil and boilerplate. Using schema-on-read mitigates some of it, but has drawbacks since it makes it more difficult to detect errors early. We will describe how we have rejected this tradeoff by applying schema metaprogramming, eliminating boilerplate but keeping the protection of static typing, thereby further improving agility to quickly modify data pipelines without fear.
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Over the past year, the talk of the town has shifted from $10 billion compute clusters to $100 billion clusters to trillion-dollar clusters. Every six months another zero is added to the boardroom plans. Behind the scenes, there’s a fierce scramble to secure every power contract still available for the rest of the decade, every voltage transformer that can possibly be procured. American big business is gearing up to pour trillions of dollars into a long-unseen mobilization of American industrial might. By the end of the decade, American electricity production will have grown tens of percent; from the shale fields of Pennsylvania to the solar farms of Nevada, hundreds of millions of GPUs will hum.
The AGI race has begun. We are building machines that can think and reason. By 2025/26, these machines will outpace college graduates. By the end of the decade, they will be smarter than you or I; we will have superintelligence, in the true sense of the word. Along the way, national security forces not seen in half a century will be un-leashed, and before long, The Project will be on. If we’re lucky, we’ll be in an all-out race with the CCP; if we’re unlucky, an all-out war.
Everyone is now talking about AI, but few have the faintest glimmer of what is about to hit them. Nvidia analysts still think 2024 might be close to the peak. Mainstream pundits are stuck on the wilful blindness of “it’s just predicting the next word”. They see only hype and business-as-usual; at most they entertain another internet-scale technological change.
Before long, the world will wake up. But right now, there are perhaps a few hundred people, most of them in San Francisco and the AI labs, that have situational awareness. Through whatever peculiar forces of fate, I have found myself amongst them. A few years ago, these people were derided as crazy—but they trusted the trendlines, which allowed them to correctly predict the AI advances of the past few years. Whether these people are also right about the next few years remains to be seen. But these are very smart people—the smartest people I have ever met—and they are the ones building this technology. Perhaps they will be an odd footnote in history, or perhaps they will go down in history like Szilard and Oppenheimer and Teller. If they are seeing the future even close to correctly, we are in for a wild ride.
Let me tell you what we see.
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Advanced Queries: Learn to craft complex queries to uncover deep insights from your data.
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Talk Delivered at Valencia Codes Meetup 2024-06.
Traditionally, databases have treated timestamps just as another data type. However, when performing real-time analytics, timestamps should be first class citizens and we need rich time semantics to get the most out of our data. We also need to deal with ever growing datasets while keeping performant, which is as fun as it sounds.
It is no wonder time-series databases are now more popular than ever before. Join me in this session to learn about the internal architecture and building blocks of QuestDB, an open source time-series database designed for speed. We will also review a history of some of the changes we have gone over the past two years to deal with late and unordered data, non-blocking writes, read-replicas, or faster batch ingestion.
Natural Language Processing (NLP), RAG and its applications .pptxfkyes25
1. In the realm of Natural Language Processing (NLP), knowledge-intensive tasks such as question answering, fact verification, and open-domain dialogue generation require the integration of vast and up-to-date information. Traditional neural models, though powerful, struggle with encoding all necessary knowledge within their parameters, leading to limitations in generalization and scalability. The paper "Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks" introduces RAG (Retrieval-Augmented Generation), a novel framework that synergizes retrieval mechanisms with generative models, enhancing performance by dynamically incorporating external knowledge during inference.
State of Artificial intelligence Report 2023kuntobimo2016
Artificial intelligence (AI) is a multidisciplinary field of science and engineering whose goal is to create intelligent machines.
We believe that AI will be a force multiplier on technological progress in our increasingly digital, data-driven world. This is because everything around us today, ranging from culture to consumer products, is a product of intelligence.
The State of AI Report is now in its sixth year. Consider this report as a compilation of the most interesting things we’ve seen with a goal of triggering an informed conversation about the state of AI and its implication for the future.
We consider the following key dimensions in our report:
Research: Technology breakthroughs and their capabilities.
Industry: Areas of commercial application for AI and its business impact.
Politics: Regulation of AI, its economic implications and the evolving geopolitics of AI.
Safety: Identifying and mitigating catastrophic risks that highly-capable future AI systems could pose to us.
Predictions: What we believe will happen in the next 12 months and a 2022 performance review to keep us honest.
2. SEC Disclaimer
The SEC’s Office of Investor Education and Advocacy is
providing this information as a service to investors. This
presentation is not a statement of official SEC policy, a legal
interpretation, or investment advice.
3. Today’s Topics
1. Managing Debt and Credit
2. Saving and Investing
3. Investment Products
4. Planning for Retirement
5. Tips to Avoid Fraud
10. Score of 620-639
Rate: 3.926%
Monthly payment: $946
Final cost of payments:
$341,000
Score of 760-850
Rate: 2.337%
Monthly payment: $773
Final cost of payments:
$278,000
Impact of Credit Score
$200,000 30-Year Mortgage
11. Source: CFPB www.consumerfinance.gov
Tips to Improve Your Credit Score
• Pay your bills on time, every time
• Don’t get close to your credit limit
• A long credit history will help your score
• Only apply for credit that you need
• Check your credit report regularly and make sure the
information is correct at AnnualCreditReport.com
13. Smart Money Management Begins with
Saving
Saving is important for:
• Emergencies
• Education
• Big Purchases
• Family
14. Emergency Fund
Save enough to have a buffer for life’s unexpected expenses:
• Set a savings goal, such as 3-6 months of living expenses
• Take advantage of one-time opportunities, such as tax
refunds or bonuses
• Save automatically, such as by setting up a direct deposit
to a savings account with each paycheck
15. 2021 Ford Mustang
Convertible GT
Starting at $46,815
Source: Autotrader.com
1996 Ford Mustang
Convertible GT
$23,495 MSRP
Source: Autotrader.com
Why Not Just Save?
19. The Power of Starting Early
The earlier you start, the less money you need to invest to
reach your goals
$250,000 by 65 $500,000 by 65
Age 25 $104/month $209/month
Age 35 $221/month $441/month
Age 45 $508/month $1,016/month
Age 55 $1,508/month $3,016/month
Assumes 7% rate of growth Source: Investor.gov Savings Goal Calculator
20. Automate Your Saving and Investing
$5,176 after
5 years
$12,435 after
10 years
$36,896 after
20 years
$75 per
month
24. Stocks
Stocks, also called “equities,” give stockholders a share of
ownership in a company
Benefits:
• Share price can increase
• Some stocks can pay dividends
• Ability to vote shares
Risks:
• Share price can decrease
• Companies can go bankrupt
25. Bonds
Bonds are like loans you make to a government or corporation on
which you receive interest payments for a period of time
Benefits:
• Predictable income stream
• Return of principal after bond matures
Risks:
• Inflation risk
• The issuer may “call” the bond
• Issuers may go bankrupt
26. Mutual Funds and Exchange-Traded
Funds (ETFs)
Pools of money invested by an investment company in stocks,
bonds or other securities – or some combination of those
investments
Benefits:
Diversification, professional management, affordability
Risks:
Typically the same as the underlying securities
27. Time: Friend or Foe?
U.S. Large Stock Performance (1926-2019)
29. Asset Allocation
Asset allocation involves dividing an investment portfolio
among different asset categories, such as stocks, bonds, and
cash
Time Horizon Risk Tolerance
36. Investing Apps
• Mobile platforms that help you save and invest
• Some apps allow you to buy or sell securities or get advice
on investing
• Make sure your investment app is a registered investment
firm
37. Investing Apps: What to Keep in Mind
• Apps may give new investors access to complex or high-
risk products or strategies – understand before you invest
• Human interaction or assistance may be limited to online
queries
• Fees may seem low, but find out how costs and
commissions work
• Apps may encourage some to over-trade through
gamification of trading and instant notifications on stock
moves
39. Tax-Advantaged Retirement Accounts
Employer-Sponsored Plan
401(k) / 403(b) / 457(b)
Individual Retirement Account
(IRA)
Maximum
contribution
$19,500 annually
(50+ may add $6,500)
$6,000 annually
(50+ may add $1,000)
Investment
options
Choice of investments, typically
mutual funds
Can invest in mutual funds,
individual stocks and bonds,
annuities, certain real estate
How it grows Your contributions, plus
possible employer matches,
grow tax free
Self-directed account based on
your contributions, which grow
tax-free
40. Traditional vs. Roth Contributions
Traditional Roth
Tax break now…
- Your money goes in before
taxes
- Lowers your taxable income
- Money grows tax free
- Your money will be taxed
when you withdraw it
Tax break later…
- Your money goes in after
taxes
- Money grows tax free
- Your money will be tax-free
when you withdraw it
41. Portfolio 2030
Bonds
Large cap
stocks
Small cap
stocks
Internat'l
stocks
Retirement Fund 2050
Bonds
Large cap
stock
Small cap
stock
Internat'l
stock
The name of the fund often refers to its target date
Target Date/Lifecycle Funds
42. Tips for Your Retirement Account
• Don’t delay
Start contributing as soon as you can, then increase contributions as
your earnings increase
• Take advantage of employer matching
Your employer may match your contributions up to a certain level –
it’s free money… and it’s part of your compensation!
• Contribute consistently
Keep contributing in both up and down markets
• Pay attention to fees
Your retirement plan may have funds that charge different levels of
fees
43. Switching Jobs?
• Keep some or all in former employer’s plan - If
permitted
• Transfer to new employer’s retirement plan - Transfer
your account balance directly to your new employer’s plan
if it accepts such transfers
• Roll over to an IRA - Transfer your account balance to an
IRA Rollover Account
• Lump sum distribution - WARNING: You will owe taxes
and pay a penalty if you take money out before the age of
59½
46. Red Flags of Fraud
• Sounds too good to be true, such as promises
of high returns with little or no risk
• Pressure to buy RIGHT NOW
• Lack of documentation, such as:
- No public filings
- No statements
- No prospectus
• Unlicensed or unregistered salesperson
GUARANTEED
RETURNS!
HUGE UPSIDE,
NO RISK!
47. Unsolicited Offers
The salesperson or promoter approaches you, not the other
way around
• Examples:
- Cold call
- Email
- Social media
- Radio and newsletters
- Direct mail
- Free dinner seminar
• How to respond: Be cautious! Do your own homework if you’re
curious or simply walk away
48. Check Any Investment Professional
Check on Investor.gov:
• License/registration
• Employment history
• Important disclosures
50. Research Any Investment Product
Check EDGAR:
Is the product registered
with the SEC?
• Scams often involve
unregistered companies
• EDGAR has important information
about companies
54. Investor Alerts and Bulletins
• Characteristics of Mutual Funds and Exchange-Traded
Funds
• Environmental, Social and Governance (ESG) Funds
• Understand the Significant Risks of Short-Term Trading
Based on Social Media
• Fractional Share Investing
• Index Funds
55. How to Reach Us
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
Investor Assistance: 800-732-0330 | help@sec.gov
Investor.gov
www.facebook.com/SECInvestorEducation
@SEC_Investor_Ed
Editor's Notes
Introduction.
We are required to give this disclaimer before we speak to audiences.
We are not providing legal advice or investment advice today. Instead, we’re talking about general principles of sound investing and avoiding fraud.
Here’s what we’ll cover today:
We’ll talk a little about managing debt and making smart use of credit.
Then, we’ll talk about strategies for saving and investing.
We’ll discuss some ideas on how to plan for retirement, including a discussion of employer-based and individual retirement investment options.
And finally, we’ll go over tips to protect your money from fraudsters.
But first, a short reminder that if you have questions about investing, the SEC’s website, Investor.gov, has answers.
Let’s start at the beginning: Before we can invest, we have to get debt and spending under control.
One of life’s truisms is that debt is easy and fun to rack up, but not so fun to pay off. The best advice is to always be careful and wise about the use of credit.
However, if your debt is a burden, you need a plan. And that plan is simple to say, but tough to do: Stop spending too much and start paying down that debt as aggressively as you can afford.
That likely means you have to pay more than the minimum payment every month.
It doesn’t make sense to invest in a mutual fund that may return 8% if you are paying monthly interest of 18% or more to a credit card company for a revolving balance.
That’s why we should pay down high interest debt first before we can clear the decks for investing.
Paying off debt over a long period of time costs you money.
Take the example of this high-end laptop. If you only pay $50 each month, the laptop will end up costing nearly 50% more and it will take you almost 5 years to pay off, by which time it will probably be obsolete.
No investment strategy pays off as well as, or with less risk than, eliminating high interest debt. Most credit cards charge high interest rates -- as much as 18% or more - if you don’t pay off your balance in full each month.
FOR REFERENCE: This example assumes a 16% APR and a payment of $50 each month with no additional fees/charges incurred.
Before you invest, make sure you aren’t saddled with high interest debt like credit cards.
If you carry a revolving balance – meaning you can’t afford to pay off your credit card bill at the end of the month – then you may be paying out interest to the bank that is significantly higher than the interest you could earn with an investment like the TSP.
Get your credit cards and high interest debt under control before so you can begin investing.
How many of you think credit cards are a good thing? Bad?
In fact, there are pros and cons to credit cards.
Pros:
Credit cards can come in handy in emergencies – you can incur the expense now, but pay it off over time.
Ironically, you have to incur some debt to establish a credit history.
With an established credit history and higher credit score, you may ultimately be able to obtain loans at lower interest rates, which means lower cost.
Cons:
You may overspend with a credit card, and debt allows you to live beyond your means artificially (and temporarily).
It gives you a false sense of security.
Carrying debt means that you spend money on interest and fees.
Your credit score—a number between 300 and 850—is the financial barometer that measures the creditworthiness and risk potential of an individual consumer.
It’s one of the tools used by banks and lenders to determine the interest rate you’ll pay on a given loan. The higher your credit score, generally the lower the interest rate charged, and the lower your payments. A higher score also makes it easier to be approved for new lines of credit, such as a mortgage or car loan.
Your credit score may also come into play in other situations, such as when applying for a new job or renting an apartment.
Look at the impact of two credit scores on a 30-year-fixed mortgage for the same amount of $200,000:
Credit score of 760 – 850; Rate of 2.3%; Monthly payment of $773
Credit score of 620 – 639; Rate of 3.9%; Monthly payment of $946
Bottom line: after 30 years, the person on the right would pay almost $63,000 more for the same house. And it’s all because his credit score was impaired at the time he went to get the mortgage. Source: Rates at MyFico.com; Google Mortgage Calculator
AUDIENCE QUESTION: What are steps you can take to improve your credit score?
Pay all of your credit cards and other debts on time.
Reduce the balance on your credit cards. Pay off your credit card every month, and avoid paying only the minimum payment required.
Do not get too many lines of credit, especially at the same time, but keep the ones you have for as long as possible. (Applications generate inquiries.)
Review your credit reports to check for errors: www.annualcreditreport.com
Why do we save?
Audience question: What are some things that you’re saving for or that you plan to save for?
Do you want to own a home some day? Open a business? Start a family? Those are long-term savings goals.
In addition to long-term plans, you also need an emergency fund to cover unexpected shocks, like a major car repair, a house repair or a health crisis.
These things can require money in a hurry, and surveys have shown that many are unprepared to incur an unexpected expense.
As the name implies, “savings” are generally put into safe places that allow for easy access, such as a savings account with a bank or credit union.
The Federal Reserve conducted a study that showed that nearly 4 in 10 Americans do not have enough money saved to cover an unexpected expense of $400. That could be a minor car repair or a cracked screen on your phone.
Even a small financial shock can turn into long-term debt if you don’t have an emergency fund.
Consider direct-depositing a small amount of each paycheck into your savings account, and take advantage of special opportunities to pump up your savings, like a tax refund or gift money.
Try to work toward a goal of having a few months’ worth of living expenses saved in an emergency fund – it will make you less likely to go into debt if life throws you a curveball.
Source: https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-dealing-with-unexpected-expenses.htm
You can’t just put all your money into savings – or stick it under the mattress – because the money you have today won’t have the same purchasing power for what you need later on. Prices for goods and services go up over time – it’s called inflation.
Let’s look at an illustration of inflation – the cost of a Ford Mustang GT 2-door convertible. In 1996, it cost around $23,495.
In 2021, it will run you nearly than $47,000. That’s a 99% increase in price over those 25 years.
That’s the result of inflation.
And inflation also impacts higher education costs, housing costs, food and consumer goods, and everything we need to live. So to keep up with inflation, you have to make your money grow. And that’s what we’re here to talk about – investing.
Savings is all the money you earn but don’t spend. Investing is slightly different – it means making that money grow.
The key difference between the two is that investing has risk, but it also has a potential to earn higher returns. What does your bank pay you in interest to keep money in a savings account? 1% maybe? The money you have in a bank account may not grow much, but it will be safe since it’s FDIC insured.
So why might we want to take on more risk? Why might we want to invest?
How do investments keep up with inflation? It’s through growing over time thanks to the the power of compounding. Over time, that growth snowballs.
Imagine that at 25 years old, you started investing $100 a month for the next 40 years. After 40 years, you would have invested $48,000, but thanks to the power of compounding, the money you invested would have grown to $239,562, assuming a 7% annual return. That’s about 5 times more than you contributed!
By starting early and using the power of compounding, you’re putting your money to work for you.
Source: Investor.gov compound interest calculator
That doesn’t mean that the growth is consistent! This graph shows a benchmark of the stock market’s performance known as the Dow Jones Industrial Average over the course of 30 years, from 1990 to 2020. You can see that the index has had many ups and downs. But look at the long term trend – historically the performance of stocks has trended positive.
Keep in mind:
Short-term stock performance tends to be volatile (jagged on the chart), but take a look at the long-term trend.
Stock returns (historically) do well over time (on average approx. 7-9% per year), but as you can see on the slide, the performance isn’t smooth and consistent
Chart source: Macrotrends (https://www.macrotrends.net/1319/dow-jones-100-year-historical-chart)
Chart date: March 15, 2020
Thanks to the power of compound growth, one of the best ways to build wealth is by saving and investing over a long period of time.
The earlier you start, the easier it is for your money to grow, which means it takes less money to reach your goals.
Here’s how much you’d need to save each month if your retirement goal was $250,000 or $500,000 depending on the age you started investing.
Most of us don’t think anything of automating payments with our monthly subscription and streaming services. We can apply this concept to saving and investing. It helps to do your saving and investing automatically. You can set it up with your bank to have the money sent directly to a savings or investment account, such as a mutual fund account. In other words, set it and forget it.
This creates the habit of saving and allows the power of compounding to work for you over time.
This slide assumes a 7% average annual rate of return – and, of course, stock market returns can vary greatly year to year.
Source: Investor.gov Compound Interest Calculator.
Rule number one of investing is that all investments have risk.
But if you are a long-term investor in the US markets, you have historically done well.
In investing, the potential for higher return typically comes with higher risk.
Different investments have different risks, and the potential for greater return generally comes with higher risk. Look how we move from safer-but-lower-return cash at the bottom up to riskier-but-higher-return stocks.
Stocks are shares of ownership in a company.
Stocks have historically offered the greatest potential for returns. A stock can appreciate in price and some stocks can pay dividends if the company distributes its earnings to stockholders.
Stocks can lose value, however, and companies can even go bankrupt, leaving their stock worthless.
Bonds are like IOUs: I lend money to a company or government body, and they promise to pay me back in a certain period of time. In the meantime, I can get a predictable income stream from the interest payments.
Some of the benefits of bonds are:
They provide a predictable income stream. Typically, bonds pay interest twice a year.
If the bonds are held to maturity, bondholders get back the entire principal, so bonds are a way to preserve capital while investing.
Bonds can help offset exposure to more volatile stock holdings.
Some of the risks include:
Interest rate changes can affect a bond’s value. If bonds are held to maturity, the investor will receive the face value, plus interest. If sold before maturity, the bond may be worth more or less than the face value. This is called interest rate risk.
The bond issuer may pay you the bond’s face value before the bond’s maturity date. This means that you would stop receiving the interest payments. This is something an issuer might do if interest rates decline. This is called call risk.
The issuer may fail to timely make interest or principal payments and thus default on its bonds. This is called credit risk.
Mutual funds and ETFs are a way to invest in the stock market without purchasing individual securities. Many workplace retirement plans, like 401(k)s, offer a selection of mutual fund investments to employees.
The main benefits of mutual funds and ETFs are:
Professional Management. The fund managers do the research for you. They select the securities and monitor the performance.
Diversification or “Don’t put all your eggs in one basket.” Mutual funds typically invest in a range of companies and industries. This helps to lower your risk if one company fails.
Affordability. Most mutual funds set a relatively low dollar amount for initial investment and subsequent purchases.
Remember that all investments carry some level of risk – typically the same as the underlying securities.
Audience Question: What stands out the most when you look at this chart?
Lots of volatility (i.e. ups and downs)
There are significant downs (the most prominent represent the 1929 Stock Market Crash, the Great Depression Banking Panic, WWII, the Oil Shock, Dotcom Crash and the recent Financial Crisis/Great Recession)
Its mostly up: Despite inevitable down periods the long-term trend of the market is positive. Historically the long-term average rate of return for the S&P 500 is between 8-10%.
Therefore, if you have a long time horizon for your investments, you can capture the historical averages of the market by investing for the long term and ignoring the volatility and daily fluctuations.
However, it is important to note that this also demonstrates that the shorter your time horizon on your investments, the more volatility becomes relevant. For example, if someone in 2006 planned to retire in the next few years but had all their investments in stocks, they would have been seriously hurt in the downturn in 2008 and likely would have been prevented from retiring at that time. This teaches us that as you get closer to your target date (e.g. retirement), it is important to shift your asset allocations to reflect your changing risk tolerance (e.g. increasingly shift portions of your portfolio away from stocks to less volatile asset classes such as bonds).
It is useful to refer back to this slide later in the presentation when discussing target date funds/TSP Lifecycle funds, and the concept of asset class allocation and how that shifts as risk tolerance changes the closer one gets to their target date.
In the chart earlier, we saw the risks of various investments.
The best way to manage investment risk is to allocate your assets and diversify your investments.
In other words, put your money in different asset classes -- and within the different asset classes, include different investments (e.g., domestic, international, large cap, small cap) so that if one investment performs poorly, another might do well.
In short, don’t put all of your eggs in one basket.
Asset allocation is deciding how to divide an investment portfolio among different assets, such as stocks, bonds and cash.
To decide how to allocate your assets, you may want to consider your time horizon (how long until you will need the money) and your risk tolerance (how much risk do you want to take).
Generally speaking, the longer you have to invest before you will need your money, the more risk you can afford to take on.
Audience question: Why do you think the sample 2050 portfolio contains mostly stocks?
Because this sample portfolio is for a goal far in the future, it is more heavily invested in stocks, which are riskier than bonds and cash. That’s because like we discussed earlier, the longer your time horizon, the more risk you can generally afford to take.
Audience question: What do you think a 2025 portfolio might look like? Do you think it would it have more or less stocks? Why?
The sample 2025 portfolio is more heavily invested in bonds and cash, which are less risky than stocks. The more conservative allocation helps to preserve the money because it will be needed sooner.
You should also spread your money among different investments within each asset class. This is called diversification, and it means holding a mix of different stocks or bonds. One way to diversify would be to hold stocks in a variety of industry sectors, such as consumer goods, health care, and technology. Diversification helps investors to manage risk because if one company or industry sector experiences a decline in value, others may post gains.
The way funds diversify is by holding many different stocks, bonds or other securities.
Diversification helps investors because if one company or sector experiences a decline in value, others may go up.
This graphic shows the S&P 500 stocks over a single day and is merely an example of holdings that a hypothetical fund tracking the S&P 500 index might have.
For example, if industrial stocks in the lower right have a down day, perhaps gains in your tech stocks and financial stocks on the left side will insulate your overall portfolio – that’s the theory of diversification. (Snapshot on January 6, 2020 S&P 500. Source: FinViz https://finviz.com/map.ashx)
Fees are very important and can impact your investment return.
You should research and think about them before committing to any investment.
We have a bulletin on Investor.gov that shows the impact of various fees on a $100,000 portfolio over 20 years.
What you earn after 20 years is shown on this chart, with the blue line showing a quarter-point annual fee, the red line in the middle showing a half-point fee, and the green line on the bottom showing a full point fee.
You can see the relatively small fee differences add up to tens of thousands of dollars over 20 years.
For example, when you consider funds, there are typically two types of funds:
Actively managed funds are funds that rely on the skill of an investment professional to buy and sell securities, often in an attempt to perform better than the market.
Index funds follow a more passive strategy that attempts to match the performance of a specific market index or benchmark -- like the S&P 500 or the Russell 2000 Index -- rather than try to beat it.
Actively-managed funds typically have higher fees, and so they need to have higher returns that make up for the higher fees in order for you to make the same amount of money.
And when you want to compare the fees and expenses of various funds, FINRA has a free tool – the Fund Analyzer – on its website, FINRA.org.
It offers information and analysis on over 30,000 mutual funds, exchange-traded funds (ETFs), and money market funds, including the fees charged by funds.
Investing apps have become popular especially with younger people.
Many apps allow you to buy or sell securities or get investment advice. Some apps allow you to set an investment strategy, often based on your time horizon and risk tolerance.
If you plan to use an investing app, make sure you are dealing with a registered investment firm. We’ll talk about how you can do that in just a few minutes.
Investing apps have become increasingly popular especially with younger people. Many apps allow you to buy or sell securities or get investment advice. Some apps allow you to set an investment strategy, often based on your time horizon and risk tolerance.
When using investing apps, here are some things to be aware of:
Some apps may give inexperienced users access to complex or high risk products or strategies, like options trading, where you can lose more money than you invest
Some firms may be difficult to reach if you have questions – some have no customer service phone support and only offer email assistance, which can take time for responses
Many apps advertise no fees or low fees, but check the fine print and make sure you are comfortable with how the firm is compensated.
Keep in mind that some apps use entertaining user interfaces with notifications when stocks go up or down and fun graphics after transactions, and these can encourage over-trading or even encourage investors to treat investing more like gambling.
If you plan to use an investing app, make sure you are dealing with a registered investment firm by doing a free background check on Investor.gov.
Now let’s talk about saving and investing for retirement.
First of all, the IRS provides tax incentives to save for retirement.
Three common employer-sponsored retirement accounts are 401(k)s, 403(b)s and 457(b)s. Private companies may offer a 401(k), while 403(b)s are typically offered by public schools and certain non-profits and hospitals, and 457s are generally offered by state and local governments. With these employer retirement accounts, your contributions can be deducted from your paycheck. The IRS limits your annual contributions to an employer-sponsored plan to $19,500 (and an additional $6,500 for those over 50).
Whether or not your employer offers a retirement savings plan, you can contribute to an IRA. (If you do have an employer-sponsored plan, then the IRA’s tax advantages may be limited by your income. There are also income limits for Roth IRAs. Consult the IRS or a tax professional for more information.) The limit for IRA contributions is $6,000 annually (and an additional $1,000 for those over 50).
You may have an option as to which type of tax advantage you receive with your retirement account.
With a traditional option (tax break now, tax hit later) you’ll lower your current year’s taxable income by the amount of your contribution, and the money will grow tax-free until you begin taking distributions in retirement. When you withdraw funds, they will be taxed at your income tax rate at the time.
With a Roth option (tax hit now, tax break later) you will contribute after-tax money (in other words, you will be taxed now at your current tax rate), but then the funds will grow tax-free and face no future taxation.
One strategy in retirement investing is choosing a Target Date (or Retirement Date) Fund that automatically adjusts your mix of investments – or asset allocation – over time from a more aggressive “return seeking” strategy early on to a more conservative “asset preservation” strategy as you approach retirement.
Target date funds are mutual funds that hold a mix of stocks, bonds, and other investments, and they are designed to be long-term investments for individuals with particular retirement dates in mind.
The name of the fund often refers to its target or retirement date. For example, you might see funds with names like “Portfolio 2030” or “Retirement Fund 2050.”
Target date funds are often available through 401(k) plans, and some 401(k) plans may make these the default investment for participants.
Consider the fees before selecting any fund, including target date funds.
Here are some tips for saving for retirement:
Start investing as soon as you can and let the power of compounding work for you. Consider increasing your contributions as your earnings increase.
Max out your match from your employer if your employer matches your contributions, if you can afford to do so. It’s free money – and it’s part of your compensation.
Keep contributing whether the markets are up or down. Keep in mind that in down markets, the prices of the shares you’re purchasing are lower so your money is buying more shares. As the market recovers, the value of your portfolio increases as well.
Always pay attention to the fees, especially if you have a menu of fund choices in which you can invest your retirement contributions. An investment with high costs must perform better than a low-cost investment to generate the same returns. (Remember, Fund Analyzer.)
When you switch jobs, you may be able to keep your retirement account in the plan of your former employer, or you may consider transferring it to your new employer’s retirement plan or rolling it over to an IRA. Transfers and rollovers should be non-taxable events if completed within 60 days.
Remember to pay attention to fees when you make those decisions.
And if you are considering a lump sum distribution or withdrawal before you are 59 1/2, be prepared to pay taxes and penalties on that money. Consider other alternatives.
When you’re investing, you need to take steps to avoid scam artists who will try to steal your money.
Here’s how investment fraud is depicted in the movies.
Let’s look at a clip from the movie Wolf of Wall Street. What are some of the tactics he used?
Here are some red flags of fraud to keep an eye out for:
Many scams sound too good to be true – trust your instincts. If the offer promises high returns with little risk, it’s probably a scam.
Don’t be pressured to buy right now. No legitimate investment requires a quick decision. Wait until you have the time to do your own due diligence.
Watch out when there’s no prospectus, offering memorandum, or no statements or public filings.
Make sure any investment professional you use is licensed or registered – Check Investor.gov.
Another red flag of fraud is an unsolicited offer to invest that can come out of the blue. Consider why a stranger would need to pitch the investment to you if it’s really such a good investment, and think about what that stranger’s motives might really be. You should tread carefully when you didn’t seek out the investment or the salesperson. Do your homework if you’re tempted by the offer, or better yet, walk away. The best scenario is when you do your own research and choose where to invest.
Here are a few other things to remember so you don’t get scammed:
Never pay for investments with credit cards, gift cards, or wire transfers.
Don’t ever pay a fee in order to claim a “winning” or other proceeds. That’s not how legitimate lotteries or investment opportunities work.
If someone claims to be from the government, and you did not initiate the contact, call the agency and find out if they work there.
Be cautious when asked to share personal information, such as passwords, credit card numbers and account numbers.
The first step to protecting your hard-earned money from investment scams is making sure you’re dealing with a licensed/registered investment professional.
Before you use an investment professional—including anyone selling you an investment—make sure you check them out on Investor.gov.
Typing their name into the “Check Out Your Investment Professional” box on our website will show you whether they are licensed and registered. You can also see their employment history, including which firms they have worked for and how many years of experience they have, and if they seem to be jumping from firm to firm, which can also be a red flag. You’ll also be able to see important disclosures.
Let’s learn more about what to check for and what the disclosures include.
Here’s an illustration of what we would see when we click “Get the Full Report.” In this example, we see multiple disclosures. Disclosure events include certain criminal charges and convictions; formal investigations and disciplinary actions initiated by regulators; customer disputes and arbitrations; and financial disclosures, such as bankruptcies. We would also be able to see their registration history, which is a history of which firms they have worked for, including how long they worked for each firm.
In addition to doing your due diligence on the investment professional, you can also research the particular investment you are considering.
We have a tool called EDGAR that allows you to research publicly-traded companies, mutual funds and variable annuities. EDGAR is SEC’s the online database of corporate filings. If the company you’re looking up is not on EDGAR, you may need to do more research because it may not be registered with the SEC. This doesn’t mean that the investment is a scam, but it’s good to keep in mind that a lot of scams involve unregistered companies – the ones you won’t find on EDGAR.
You can learn important information from the filings that these companies are required to make to the SEC, such as:
the company’s registration statement,
its periodic disclosures with the SEC,
stock holdings of officers and directors,
and the company’s audited financials.
The main EDGAR page includes a tutorial on how to quickly research a company’s operations and financial information.
Just about everything we covered today in this presentation is derived from resources on Investor.gov.
And when you want to figure out how compound interest will work for you, this is one of the most popular tools on our website -- our Compound Interest Calculator -- which allows investors to see how their money can grow over time.
It lets you plug in an “initial investment” amount, plus the amount you plan to contribute periodically. Then you can plug in the interest rate you expect to earn.
Investor.gov has hundreds of timely investor alerts and bulletins on emerging risks to investors, fraudulent tactics, and investment topics.
Here are just a few examples. You can search by keyword.