Standing Strong Financially

One way to stand strong in your life is standing strong financially.  In other words, we are going to tackle the word MONEY.  Some like it, some don’t, and others struggle with it.

Standing Strong

“The goal is not more money.  The goal is living on your terms.”  Will Rogers

I know many of you might hate economics, but it is a necessary evil if you want to have a portfolio and budget in your life.  To understand money and make more I want to share a few basics with you.  However, financial advisors are wonderful people.  I will share how to find a good one in another post.

“Don’t think money does everything, or you are going to do everything for money.” – Voltaire

Financial stability

There are many ways to save for the future.   Short term or long term is your decision.  No matter what anyone else says, it come down to what you want and need to have a strong life.

One example, if you invest in the stock market there are things to consider.

1. 1. 1. Treat you share as a proportion of ownership.   If you cannot understand the business, you cannot understand its value.
      2. Put on your safeguards. You want to know when to buy and when to sell.  There are ways to keep your money where you want it.
      3. Make your investments options your servant rather than you master.
      4. Be rational, objective, and dispassionate. Avoid the nonsense that is going on around you.

“Do what you love, and the money will follow”  Marsha Sinetar

Standing Strong on Tax

This is another word people try to avoid.  So how do we do that with our hard-earned money?  Simple, learn the basics

“Wealth is not about having a lot of money; it’s about having a lot of options.”  – Chris Rock

Income tax diversification means that your investments are in a mix of accounts with different tax treatments.

• • • Taxable (Tax-now)
    • Tax-deferred (Tax-later)
    • Tax free (tax-never)

Tax-now is when you are taxed on anything right away.  Typically, your checking, savings, certificates of deposit and mutual funds.  Even though these accounts are more liquid and available right away.  These are considered short term gains and are available on any rainy day.  In other words,  the necessary evil we have to life with.

Tax-later,  here are the 401ks traditional IRAs.  These funds come from pre-tax dollars and are taxed later when you pull the money out.  Annuities sit in this category, only because you pay tax on the gains that you collect.  In other words,  defer your taxes until you are a certain age or pay a penalty with the tax if taken sooner.  Hold this for retirement when your tax bracket is lower.

Tax-never.  Now this is the best goal to have.  These accounts include Roth IRA’s, Roth 401Ks Municipal Bonds and life insurance with cash values.    In other words.  They are made from earned income and after-tax dollars then grow as time grows.    Hiccups on these are there are limitations to be aware of.

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

It is never too early or too late to begin your strategy,  just beware and learn the terms so you are not caught by surprise.  Hence, know where you want to go and learn by standing strong financially.

“Money is a terrible master but an excellent servant” P.T. Barnum

P.S.    Some like this subject and others regret it, so if you want to have anything explained further reach out.  I would love to hear your story and help you start to stand strong in all areas of life.

Keep smiling

Sandy

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