Back to top

Financial

What should my long-term financial goals be?

The first step is to figure out a realistic financial goal for yourself and your family. Talk with your loved ones to ensure that everyone has the same goals in mind. Clearly not all families will have the same end goal - figure out what is important to you, whether it is early retirement, financial comfort, children's education, travel, taking care of elders, or your children.

The first step is to figure out a realistic financial goal for yourself and your family...

Are there simple guidelines to follow towards a comfortable retirement?

Someone starting their savings in their early 20s can save 10% of their income and have a sufficient nest egg, while someone starting in their 40s may have to bump that number up more towards 20%. This is all dependent on the time of your life that you choose to start, the size of your current nest egg, and the amount of money that you will need to retire comfortably.

It is always a good idea to contribute as much as possible to retirement plans, to take advantage of tax deferral and employer matches.

Generally people need around 80% of their pre-retirement income after they have retired for the first few years and then learn how to live on less. This will greatly depend on the expenses that you plan on having:

  • Is the mortgage already paid off?
  • Do you have car payments?
  • Are you sending your children through school?

Another strategy worth following is to always have an emergency fund of at least 6 months of expenses. Considering your situation and the situations of the people that you depend on or depend on you, you can adjust the number of months accordingly, but 6 is a good ballpark number. This will also depend on how many bills you need to pay.

Someone starting their savings in their early 20s can save 10% of their income and have a sufficient nest egg...

What is the Rule of 72?

The rule of 72 is a quick way to calculate how long it will take your investments to double at different interest rates.

Take the rate of yearly return on your investment and divide 72 by that number. The result is the number of years it will take for you to double your investment.

The rule of 72 is a quick way to calculate how long it will take your investments to double at different interest rates...

What is significance of total return?

The total return is the amount of money that a fund makes after reinvesting and receiving dividends. This will deliver the most benefit from the compounding interest. The total return is a way to accurately gauge the real return on investment that you will get with a mutual fund.

The total return is the amount of money that a fund makes after reinvesting and receiving dividends...

What is a yield?

The yield is the amount paid annually by an investment. The yield is most commonly a percentage of the market price of an investment, which does not take into account the appreciation. Since money market funds and certificates of deposit don't fluctuate like stocks and bonds do, the yield would be the same as the total return.

The yield is the amount paid annually by an investment...

What taxes will my annuity be subject to after death?

Annuity payments to beneficiaries are subject to the same taxes that would have been collected from you.

Annuity payments are subject to the same taxes that would have been collected from you.

Client Login

Subscribe to our Newsletter