Manage Your Retirement in Four Easy Steps
Most people worry about having enough money during their retirement. But many of them consider investing for retirement very complicated or scary.
Investing for retirement, However, is not that complicated. We at Jemstep would like to spend some time with you to let you show you how we can help prepare for your future retirement.
We have created a new online investment management service called Jemstep Portfolio Manager which allows you to manage and optimize your retirement savings in four easy steps. This new flagship product provides all investors, no matter how much money or investing experience they have, the high-quality, personalized guidance that has historically been accessible only to moneyed investors.
Are You on Your Way to Becoming Wealthy?
When people ask me to suggest a great investment book, I almost always recommend that they start with “The Millionaire Next Door.” It is not really a book about investing – it is a direct personal finance book with a simple message: If you live within your means and save aggressively, you can also become financially independent, even if you were not born wealthy.
I concur with the book’s basic premise, and I have first-hand experience that it works: my parents. They started out with practically nothing. My mother grew up in a poor family. My father came from a wealthy upper middle-class family, but had received very little financial help from his parents as they always believed he should work and build himself financially.
So, my father worked and so did my mother. They worked diligently, saved aggressively, and refrained from getting sucked into a frivolous lifestyle and into keeping up with the neighbors. In fact, one of the essential observations in the book is that most self-made millionaires look at financial independence as preferable over achieving social status through spending.
Not that my parents did not have an enjoyable life through all these years of hard work, saving and living below their means. The book is often criticized for supposedly promoting an anti-social lifestyle, of secluding oneself from society at-large and hoarding money; but this is not true at all. My parents traveled extensively, entertained family and friends, and acquire things that considered important to them. They did not, however, reside in a big house or replace their car yearly. They never borrowed, with the exception of their home mortgage, which they were able to pay in full after 15 years.
Now, in their early sixties, my parents are financially-independent. Moreover, my father retired fully when he was 55 years old.
But why dwell on personal finance issues and money beliefs in an investing blog? Sure, we talk about investing all the time; but one has to have the money first to invest. You can dream about making it big by winning in the lottery or putting up the next phenomenal business venture. Such things happen. In most cases, however, it is not about a “big break,” but more about putting away some income into savings day-by-day and month-by-month. And once you start saving, you can have the money to invest – and Jemstep can serve your needs in investing wisely.
Obviously, our culture nowadays promotes the exact opposite of living below our means. There is so much pressure to live way above our means and to fund the gap by taking out loans. This irresponsible habit of borrowing brought about the Great Recession, and in a way, that period has brought out the important lesson that borrowing in order to live beyond our means is not after all such a great idea. Frugality has become more desirable and has even become a trend. But how long will it endure? We will surely find out in time.
In general, we have become accustomed to think that if one looks wealthy, one is truly wealthy. But in many cases, people who lead opulent lifestyles are doing so through debt. In reality, they are not rich, because their “wealth” will disappear in case they lose their job. Many of them are not even investors because they do not have money to invest – instead of saving money in a tax-friendly 401(k) or IRA, they are unwisely splurging their income. The genuinely rich often do not appear to be wealthy externally – they live below their means, invest wisely and save aggressively. And through the magical power of compound-interest, the earlier you start, the greater your chances of eventually becoming financially independent.