What makes investing in the stock market so hard to do? Is it scary? Is it hard to understand? Is there too much at risk?
An article from MarketWatch a few years ago tells us, “The best explanation is usually the simplest one. But Wall Street and the financial-services industry never got the memo. They want to make up complex “solutions” and theories of why things happen, when the simple truth is right in front of their noses.”
Save For Retirement
For years, you’ve been told to save for retirement. It doesn’t matter if you’re a boomer or a millennial. There’s got to be enough to live on when you quit your job and the money stops rolling in.
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Investopedia gives several guidelines for the amount you need to be saving. You can see it broken down by age group. It also quotes “the tried-and true or old school rule, the 80% rule: Save as much as you would need to have the equivalent of 80% of your salary for about 20 years.”
Using numbers supplied by Fidelity, Investopedia says, if you are earning $75,000 annually, you should have saved eight times your salary. That would be $600,000.
However, if you apply the 80% rule, still basing it on an annual salary of $75,000, you need to have saved $1.2 million. Adjust it for inflation and the amount you need to save jumps to between $1.5 and $1.8 million.
Don’t let these numbers cause you to make more excuses for not investing! There are plenty of excuses people make including saying they don’t know enough, they don’t trust stock brokers or financial advisors or they think investing is too risky.
Number One Reason
But the number one reason people don’t invest in the stock market? They can’t afford it!
In MarketWatch, Howard Gold said, “last year I did the math and found how tough it is to save. If you take the median income of $51,900 and subtract the necessities (food, housing, transportation, taxes, etc.), the average family doesn’t have much left over. That’s why nearly two-thirds of Americans get more than half of their retirement income from Social Security.”
Since the article was posted in 2015, he’s referring to 2014. Income has gone up since then, but so has expenses.
One report showed how much is overspent by the average US household. It started with a higher average income before taxes, but then itemized what was spent, including taxes. It made it easy to see how the average American would have a hard time investing, unless changes were made in spending habits.
Make A Plan
The earlier in life you realize the importance of saving for retirement, the easier it is to make a plan to do it. Of course, you want to have a safe place to put your money. You don’t have to know everything about the stock market to have your money work for you.
The Algorithmic Intelligence used by iFlip makes saving for retirement stress-free. Using the best algorithmic trading software for its technology, all trades are automated for you. iFlip has algorithmic portfolios available for use on your computer and now offers one on their new mobile trading app.
No experience is necessary and there are no confusing fees. In fact, the mobile AI stock trading app is free!
iFlip’s algorithmic intelligence (AI) is designed to manage your risk during volatile times helping you to save more and grow your wealth. This is long-term investment, not a get-rich-quick scheme.
Ready to start planning your future? Jump over to iFlip and see what they can do for you. Preserve, protect and grow your wealth.