(This blog is a reprint of one I wrote a year ago talking about an investment tool to broadly predict an investment return.) Well, you have an investment strategy that will earn a certain amount. How long do you have to use this strategy to double your money? You can either use software like TValue or a scientific calculator to come up with the exact amount of years, or you can use ‘The Rule of 72!’ So now you ask, what is ‘The Rule of 72?’ (Glad that you asked.) It is an easy and approximate calculator someone can quickly use to either figure out how long it will take to double your money earning a fixed percentage annually or how much you have to earn to double your money in a certain time (?????) Okay, you have $100,000 that you figure you can get a nine percent return on. Divide 72 by 9 and you get 8. It will take you eight years earning 9% to double your money. It is easy to use because 72 has a lot of whole number divisors (36, 18, 12, 9, 8, 6, 4, 2) so as a quick way to [...]
Financial Musings of a Burbank CPA: The Simple Mind Trick That Will Boost Your Savings in No Time
If you are behind in saving for retirement or college for your kids, maybe thinking about things differently will change your savings discipline. See this article in Money by Brad Tuttle for more details: http://time.com/money/3855517/tricks-boost-savings-retirement-college/?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=17663702&_hsenc=p2ANqtz-8OkdySB6_owZGX7-LOu2Zl6KlobgnZBYHOVq6vAh7T-GoKyiZpJXQTsF3k3p60UUwjUbG_srNNowPGklaxT1Qo_M6LaQ&_hsmi=17663702#money/3855517/tricks-boost-savings-retirement-college/?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=17663702&_hsenc=p2ANqtz-8OkdySB6_owZGX7-LOu2Zl6KlobgnZBYHOVq6vAh7T-GoKyiZpJXQTsF3k3p60UUwjUbG_srNNowPGklaxT1Qo_M6LaQ&_hsmi=17663702 In addition to how you think about savings, taking the thought out of the equation always helps, streamlining things and making it automatic. As the article says, automatic payroll deductions to 401Ks to saving for retirement is a great idea. You can also set up automatic transfers to your IRAs – if you never see the money you tend not to miss it (what a novel idea!) For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Tax Musings: The Wrong Way to Select a Bank Account for a College Student
If you have kids going to college or about to, the time is coming to get them to get a low cost checking account with debit card provisions. Watch out for hidden fees and other costs in school sponsored plans, as they can cost you a lot for the convenience. See this article in The Wall Street Journal by Karen Damato about what to look for: http://blogs.wsj.com/totalreturn/2015/03/30/the-wrong-way-to-select-a-bank-account-for-a-college-student/?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=16827317&_hsenc=p2ANqtz–HudcAbFKaUZQYG51LAKzWGIBH6R-Q7-iPzaIceYvnED7t7T72GAXtrMDlcl3TBVAJdusyBzJ0woDot3QVLPCbPsBO0g&_hsmi=16827317 To avoid overdrafts on the account, it is important for college kids to record all their debit purchases and make sure deposits are enough for spending. In other words they need to have a budget and reconcile their bank accounts (ever heard that before?) For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa