Take the richest person on the planet alive today and compare this person with any other. Does the richest person have more talent? Maybe. Inherit much of their money? Possibly. Compared to every parameter the richest person alive today might have an advantage over you, save one: time. Both you and the richest person alive have exactly the same amount of time every day. No one has an advantage. Or do they?
The message is clear: You do not need extraordinary luck. You already won the ovarian lottery, as Warren Buffett likes to say. You are alive, reading this. You already won. From here you can create a meaningful life. The tools for building that meaning and growing it to greater heights is gathered from those who have already found meaning in their life.
The solution to too much or too little weight is solved with generally the same strategies. There are three things needed to maintain an ideal weight: diet, exercise and sleep. Do it right and you stand a good chance of living a long time. Do it right and you increase your chances at high levels of health and happiness. Do it right and your level of happiness should go up significantly. Do it right and you will truly be wealthy.
Personal factors, your tax bracket, expected future income and when you plan on retiring all play a role. The answer isn’t as simple as playing the tax bracket game (convert be low a certain tax bracket only).
Other considerations can affect you taxes down the road. Even Medicare premiums are an issue. A high required minimum distribution (RMD)(currently starts at age 72, but pending legislation will gradually raise that to 75, if passed) can cost more than just a tax bill. It can also increase your cost for Medicare.
The best way to handle a Roth conversion discussion is to break it into two parts: the conversion phase and the retirement phase.
How do you invest during times of war? Do you change investing strategy during periods of heightened geopolitical tensions? These and similar questions need to be asked by wealthy people and those wishing to become wealthy.
It has been a long time since developed nations have tasted serious inflation. Unless you are near 60 or older you will not have experienced the last time inflation was a serious issue in the 1970s into the early 1980s.
Coupled with low inflation is low interest rates. It is hard to miss the pattern of interest rates since 1982. Each increase in interest rates was followed by a new low in interest rates until we bumped against zero and stayed there for much of the past decade.
The stock market loves low interest rates. The constantly declining interest rates gave us a stock market that has relentlessly climbed. In the early 1980s the price/earnings (p/e) ratio for large capitalization stocks was in the single digits and the dividend yield was in the 6% vicinity. Now the p/e multiple is closer to 30 and the dividend yield is below 2%.
Find some place comfortable to read this post.
Sit back, relax. Close your eyes. Empty your mind of all thoughts and worries.
Now I want you to go to a special place, a place in your memories. The memory is of a good time, a happy time, a time you want to last forever.
The memory might involve a family gathering or a time of recognition. For many, the memory is connected to a holiday or social event. For many in the Western world it will be a time from childhood and Christmas time.
Hold that memory. We will return to it shortly.