Would You Pass up a $14.5 Million Salary for a Year?

The NFL saga of Le’Veon Bell is finally over, at least for the 2018 NFL season.  Bell will not suit up for the Pittsburgh Steelers or any team for that matter.  From a fantasy football aspect, many who drafted Bell in their leagues are quite upset, including David Spade.  The Steelers and their fans are also disappointed but ready to put this behind them.

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By deciding not to sign a long-term contract or his franchise tag this season, Bell passed on over $14.5 million in salary.  This begs the question.  Would you pass up a $14.5 million salary for a year?

WHAT DOES $14.5 MILLION LOOK LIKE?

If you had a job earning $14.5 million in salary for a year, you would take home $1,205,333.33 a month.  If you were paid twice a month, that would come out to $604,166.67 per paycheck.  That’s roughly ten times more than the average American family makes in the entire year!

Of course, this is all before taxes.  If one earns a salary of $14.5 million for a year, they will be in the highest federal and state tax brackets.  After taxes, someone can still expect to take home a nice chunk of change every couple of weeks.

HOW MUCH OF A $14.5 MILLION SALARY CAN I SAVE?

That answer is up to you.  You can make a lot of money, but if you spend a lot of money you have very little leftover for savings.  The opposite is also true.  Maybe you don’t make a lot of money, but of what you do make you save first and spend later.  This is a good recipe to build wealth.  Saving before spending along with creating a free monthly budget is a good recipe for wealth building.

Although saving with an IRA, particularly a Roth IRA, is a good way to save for the future, you are unable to participate if you make a $14.5 million salary.  2019 income limits have been announced for IRA’s and you’d have to make less than 1/100th of that salary to participate.

CONCLUSION

Although we can dream about making a $14.5 million salary, the reality is that very few people actually pull down that kind of money in a year.  After all, Le’Veon Bell turned it down hoping for a bigger payday.

Even though you don’t make millions of dollars doesn’t mean you can’t achieve everlasting wealth.  Achieving wealth is a two part recipe: budgeting and investing.  Proper budgeting and smart investing can build a wealth that one can pass on for generations.

Budget Smart, Invest Wise

OTHER NFL PLAYER’S NET WORTH

Ameer Abdullah Net Worth

Drew Brees Net Worth

Jason Witten’s Net Worth

Jarvis Landry’s Net Worth

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Choosing Between a Conveyancer Or Solicitor

If you’ve recently made an offer on the purchase of a property, you’ll know that the next step in the process is hiring a solicitor or conveyancer in order to legally transfer ownership from the seller into your name. This process is called conveyancing, and that’s why you can choose the services of a conveyancer. You can also choose to hire a solicitor, another legal profession that specialises in property transfer. But which one should you choose?

In order to answer this question, first you’ll need to know what each of these does, and then decide on whether a solicitor or conveyancer is better for your needs. Both solicitors and conveyancers are licensed and regulated by the government, and they will also act almost identically when handling your property transaction. However, there are a few differences.

Solicitor Or Conveyancer – The Differences

Conveyancers are property lawyers who focus especially on residential property transfers, whereas a solicitor is a qualified lawyer and is trained in many other aspects of the law. Sometimes, a solicitor may charge more than a conveyancer to complete a property transfer. This would still depend on the complexity of the process of the property you wanted to transfer.

What To Look For In A Conveyancer or Solicitor

There is a lot of bureaucracy involved in conveyancing, but all the legal paperwork is necessary to ensure that the transfer of the property goes through. The last thing you want as a buyer is for unnecessary delays because your solicitor or conveyancer has not handled the process promptly. So, you really need to find someone with a good track record to handle your conveyancing efficiently, such as River City Conveyancing based in Brisbane, who has an excellent reputation.

Make sure that your solicitor or conveyancer is ready to answer your questions whenever you need them. Conveyancers are often office-based, as opposed to solicitors who may have other legal duties.

Before hiring either a conveyancer or solicitor, ensure that the quote you are provided is final and doesn’t include hidden costs that will sting you later. Two things to avoid are quotes that do not fully itemise all charges, and also any conveyance service that charges an hourly rate.

Making The Choice Between A Conveyancer And Solicitor

The bottom line is that in most cases of transferring property ownership, the conveyancer will be able to handle your complete transaction. There may be reasons you need to take on a solicitor, especially if there are legal complications involved in the conveyancing, such as boundary disputes. In these cases, the legal knowledge will be superior to what a conveyancer is trained for, and you will need to ask the services of a lawyer.

You might be tempted to just go ahead and simply hire conveyancers. However, for a more expensive property, hire solicitors for they can tackle problems involving higher value homes.

 

The Importance of Predictability in Finances

Many people enjoy a lack of predictability in at least some facet of life. Surprises can keep life interesting and exciting, after all. However, there are situations where surprises are not desirable at all. One case of this applies very much to personal finances.

People generally want their personal finances to be as predictable as possible so that they know exactly how much they will be making or how much they will need to pay for a certain bill every month. Of course, there are pleasant surprises when it comes to personal finances, like when you end up having to pay less than you had expected, or you end up getting a surprise bonus check at work, but these types of surprises are very rare. When it comes to personal finances, it’s much more common for surprises to entail a loss of money rather than a net gain.

Predictability is often the most desirable state when it comes to personal finances, as people like to know when their payment due dates will be every month and that they will not have to pay more than they are expecting to pay. Having to pay more for an unexpectedly high bill will take away money that you may have been planning to spend somewhere else, which can be highly frustrating.

With this in mind, it pays to know as much as possible about a financial arrangement before putting your signature down. For example, learning what are installment loans repayment plans can be determined by reading the details outlined by lenders on their websites. It might seem like a lot of confusing financial language, but similar to learning a foreign language, eventually you start to catch on to the lingo. Furthermore, a good sign of a trustworthy lender is the level to which this information is provided.

Another common source of undesirable unpredictability when it comes to personal finances is earning less money than you had expected to earn. This can happen when your hours have been cut back at work due to a decision that was out of your control, or when you suddenly lose your job with no warning and do not have time to get a new job without having a gap in employment. In these situations, which commonly arise, you will have to make do with a smaller amount of money and may have to cut back on what is already the bare necessities.

As you can see, there are many reasons why predictable personal finances are highly valued by anyone who does not want to end up in a financial crisis. Ideally, the situation will always be predictable, with no unexpected losses of income or surprise bills popping up, but the reality is that this is not always the case. If you end up with less money in your budget than expected, it is important to be prepared for the situation and know how to deal with this less than ideal predicament, and have a backup plan if necessary, such as an emergency fund. If you are already in this situation and have no idea how you are going to get through it, keep this in mind for next time so that you are better prepared when the situation arises again.

Are Precious Metals a Good Investment for you?

Precious metals are undoubtedly one of the most popular commodities to trade, not least because of the strength they add to the average investment portfolio. There are, of course, many factors to consider before investing in them, so it is worth knowing how they behave on the market and when the best time to invest is. Here are some considerations on precious metals.

Market Behaviour

Often traded through brokers like LCG, precious metals (gold, silver and platinum) exhibit unique market behaviour, and are considered a fairly steady investment. Gold is often used to hedge a portfolio against investment risk.

Given that their core value doesn’t really decrease, they are seen as the go-to commodity in times of political and economic uncertainty. This is because other, more volatile assets (like currencies) become incredibly difficult to invest in due to their unpredictability, and thus their value can often decrease dramatically.

Current Performance

It is worth noting that the behaviour of each individual precious metal is often mirrored by the other precious metals, Silver’s market behaviour, for instance, is incredibly similar to gold’s. Precious metals have, by their standards, had a fairly volatile year, with the value of gold currently standing at around $1,338/oz (as of 06/09/2017), almost exactly the same value as it was a year ago.

This is up from $1,157 at the start of the year. It is likely that tensions between the US and North Korea have contributed towards this surge in value, and it could well be the case that gold’s value decreases if this eases off. Silver’s market behaviour has been much the same over the last year, so compared to earlier in the year these metals are now very expensive.

Are They a Good Investment?

Compared to their value five years ago, precious metals are trading are a fairly low price. That being said, it seems as though they could well be on the rise again after a significant period of geopolitical turmoil, so watching the market carefully is bound to be a good idea.

Silver and platinum also have fairly widespread industrial uses, so any surge in demand for them could well see their price rise sharply.

Precious metals will always be a good investment to hedge against risk, but currently they may be seen as overvalued/too expensive by buyers. Many may be looking to sell in the short term future to take advantage of their current value.

Proper Investing Means Using the Right Channels

As the world evolves every day there are more and more people who are considering investments for their future endeavors.  Whether they are planning for their retirement or investing in a multi-national company, there are advantages to those investments as well as regulations that come with the territory.  For example, there are plenty of people who’ve chosen to immigrate to the United States in recent decades.  The regulations for their investments are quite a bit different than for a current resident of the United States, due to the legal status of the individual.

What kind of steps need to be taken in order to invest as an immigrant?

One of the most important steps anyone will need to handle is their EB-5 Visa Application process.  This process can be quite confusing and the legal language used is often hard for US residents to understand, let alone someone who is immigrating from another country.  This is where a solid EB-5 Visa attorney is nearly essential.

Immigration and investments are what these attorneys handle the best.  Advisors will openly tell you to find experienced immigration lawyers to help your EB-5 visa application process in order to make the process as smooth as possible.  One of the reasons for this is the obviously confusing legal language often used in the process.  Another important reason for this is so you have an experienced attorney overseeing the process and ensuring that any of your current investments are properly analyzed.

Why would my current investments matter?

With the current state of affairs in the world, many governments are taking a much harder look at the investments of those immigrating to their countries.  They want to be sure that no money is being passed to organizations who may be on a watch list, etc. and your investments can and will likely be looked at as a result.

While this may seem a bit nosey on the outside, it is a sign that the ruling government is actively protecting its citizens, which should actually put you much more at ease knowing they will be protecting you as well when the next person comes along wishing to immigrate to the country.

Taking the right steps and contacting knowledgeable lawyers is important to your investments

Whether you’re considering investing post-immigration or already have investments, taking the proper steps and obtaining outstanding legal counsel is important to not only your immigration process, but also to your investments overall.  Not only can an experienced EB-5 Immigration Attorney help you to speed up and smooth out your Visa process, they will also be able to give you a bit of insight into the many regulations that you will encounter after your process is complete.

By taking counsel, you are investing in your future, as you’ll learn a great deal about the process, the laws you should be aware of, and even smaller details such as general conduct.  Be sure to ask your immigration lawyer about any local, county, state, and federal regulations that may affect your investments and your family, making your future a bit brighter with the knowledge that you have experienced counsel to help you along.

Nick Murray: Simple Wealth, Inevitable Wealth

I got my first “real” job at the age of 23 and could not wait to begin investing.  I knew that if I was going to achieve wealth I had to start young and with my parent’s financial advisor.  Turned out I was wrong.  I only had thousands of dollars to invest, and my FA had clients who had hundreds of thousands, even millions.  I paid fees to the FA, still to this day I’m not sure what they were, that were at least 1%.  I took the advice of my advisor believing they were the “expert”.  Eventually I learned they weren’t.

A friend of mine introduced me to a book that forever changed my life and investment philosophy.  That book was Simple Wealth, Inevitable Wealth, Revised Edition.  In the past four years since being introduced to this book, I have read it many times, bought copies for friends and family, and seen my net worth increase dramatically.  I have the confidence to say that this book alone will allow me to achieve millionaire status before I reach the age of 40.  I am also confident in the fact that this book will help me achieve wealth that I never once dreamed I would have been able to.  I will dive into the three most important aspects I gathered from the book and how they will benefit my wealth creation.

1. INVEST IN STOCKS, NOT BONDS

Most advisors will tell you that you need an appropriate mix of stocks and bonds, especially the older you get.  Why do they tell you this?  Bonds have a lower volatility than stocks, but that lower volatility also means lower returns.  Nick Murray states in his book, “You should be an owner not a loaner”.  A good FA will allow you not to freak out and sell when the market turns south.  By owning stocks and not bonds, you ensure the highest possible return on your portfolio.  After all, the S&P 500 has returned an average of over 10% per year for over the past century.

2. GET A GOOD FINANCIAL ADVISOR, OR CONVINCE YOURSELF NOT TO SELL

Nick’s reasoning for a financial advisor is that he or she will make sure you won’t sell equities when times get rough.  He uses the following example in his book:

“Warren Buffet’s net worth declined over six billion dollars between July 17 and August 31, 1998.  His net worth decreased by six billion in 45 days, but how much did he lose?  The answer is zero.”

Times got tough during those 45 days for equities, but since Warren didn’t sell he didn’t lose.  The natural tendency of people is to sell when the market heads lower and buy when the market goes up.  If you can wrap your head around this philosophy that markets will go down and up, but keep in mind the long-term investing horizon, I say there is no reason for an FA.

3. INVEST CONSTANTLY AND FOR THE LONG TERM

Stocks may not return 10% in the short run, but the best predictor of the future is the past, and over the long-run they should return about 10%.  Invest with a long-term horizon and invest on a constant basis.  Investing on a constant basis means every week, paycheck or month, add to your investments and let compound interest work its magic.

Finally if you get a chance I definetly reccomend that you pick up a copy of Murray’s book. Its available on Amazon for around $20 bucks. Thats a lot, but its definetly worth the investment. Click here to get it.

Budget Smart, Invest Wise

Should You Rebalance Your Investments?

If you are fairly new to investing you may have already heard a little bit about rebalancing. According to Wikipedia, rebalancing is the action or trading strategy of bringing a portfolio that has deviated away from one’s target asset allocation back into line. But if you’ve looked at your portfolio to find it hasn’t changed all that much yet, you may wonder whether or not you should rebalance your investments?

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Diworsification: How Much Diversification is too Much or Little?

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Diworsification

When I was picking stocks, I saw my portfolio lose 15% of its value in one day.  Simply put, I had too many of my eggs in one basket or too many of my investment dollars in one stock.  I wasn’t diversified.  Sure, I could hit it big with a stock, but I could also lose.  I saw the amount of time I was spending on picking stocks and knew it could be put to better use if I let the professionals handle my money.

My portfolio was under diversified, but many people also suffer from too much diversification of their portfolio or diworsification.  Diworsification occurs when you continually invest in the same asset class and keep your risk low but hurt your overall return potential.  It would be the equivalent of investing in many different mutual funds that only contained U.S. stocks.  If you want exposure to the U.S. domestic stock market that is great, I highly recommend it, but pick a fund that gives you just that and move on.

My investment strategy has come a long way from my earlier days when I was picking and choosing stocks.  I thought just like many that I could pick homerun stocks that nobody else could.  I did well on some and poorly on others.  I would come home every day from work and watch Jim Cramer’s show Mad Money.  I soon realized that the effort I was putting in wasn’t yielding the rewards I desired.  I quickly shifted all my investments to a mutual fund.  Being young, I knew I wanted a large exposure to stocks.  What better stocks to invest in than the U.S. Stock Market?  Warren Buffett has been noted to say that when he passes he wants the remainder of his fortune put into a low-cost index fund that mirrors the S&P 500.  That’s right, just one fund.  If he wanted his fortune to be spread across many funds that mirrored the S&P 500 he would be subject to diworsification.  I decided to follow Warren’s advice.

While my investment dollars are placed into a single low-cost Index fund that mirrors the U.S. Stock Market, not everyone will agree with this position, and that is fine.  Investment advice can be given to you from a hired professional or you can decide on your own.  My knowledge came about through the reading of numerous books.  If you want to invest in South America, there are funds for that.  If you want exposure to corporate bonds, there are funds for that.  If you think that the pharmaceutical sector is the next big thing, then by all means find a fund that suits you for that investment.  There are many ways you can invest your hard-earned money, but try and keep to the One and Done Philosophy when investing in mutual funds to prevent diworsification: Pick one mutual fund that covers the class or sector you are wanting exposure to and leave it at that.  Not only does it simplify your portfolio, but it keeps you diversified and away from diworsification.

How Rookies Can Invest in Real Estate

If you are interested in investing in real estate property, you may have started doing research about it. However, there is so much information out there about the topic that it can sometimes be confusing and leave you wondering how you should get started.  Fortunately there are a few not so complicated ways how rookies can invest in real estate.

1 Rentals

If purchasing a single family rental appeals to you but a lack of time to research and find an investment property is holding you back, there is a way to get it done fairly easily; Let someone else do the research for you. But saving time may not be the only thing making you hesitate. You also have to find renters, collect rent, do upkeep, and the many other tasks involved with owning a rental. It all takes time and it can be somewhat intimidating to a rookie real estate investor. So why not allow someone else to do some of the work for you? In addition, it is possible to purchase turnkey rentals even if you don’t have the expertise or time to manage the property yourself. Also, if you think you are locked into buying rentals only in the area where you live, think again. You can invest in properties in a different part of the country altogether even if you haven’t personally seen the property. Does this sound like a dream? There are companies in existence that can help you overcome these hurdles so you can purchase a rental and get started investing in real estate even as a rookie.

2 Crowdfunding

Crowdfunding is another way to help you get started as a rookie real estate investor, especially if you don’t have much money to get you started. By choosing this method you can put your money together with money from others and invest in real estate so everyone benefits. This is done through an REIT, or Real Estate Investment Trust.

REIT’s are a lot like mutual funds in that they give investors the power to diversify their investments and have steady money coming in. They are made up of knowledgeable team members who devise ways of investing pooled money in real estate investment options not usually available to the lone investor. They do this by putting the investment capital into more than one property, which makes the risks low and raises the growth potential of your investment. There are several companies that offer this type of investing, so it shouldn’t take too much time to research and find one to your liking.

3 Partnership Investing

Of course, you could also pool your money with someone else without the help of an outside company. Choose someone you trust to get started with and you could still invest in real estate even if you don’t have a lot of money or experience. When you work with someone else who has real estate properties already, you can learn a lot from them about choosing, financing, and managing rental properties or flip properties. It may also allow you to start investing a lot sooner than if you were to try to purchase a property on your own.

As you can see, even if you are new to real estate investing, there are different ways how rookies can invest in real estate. Don’t let whatever is holding you back prevent you from securing your future.

What other options do you know of how rookies can invest in real estate?

Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.

Should I Invest in Stocks?

The U.S. Stock Market is at an all-time high, and many are wondering how much longer this can be sustained.  People are asking themselves if it is still worth investing in stocks at this high.  The simple answer is: YES!

Below is a chart of the S&P 500, which covers the broad range of the stock market.  The chart below illustrates performance from 1950 until the end of last year.

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Should I Invest in Stocks?

As you can see based on the chart, there are rises and falls, some of which are quite big.  If you look at the chart as a whole, you can ultimately say that U.S. stocks have increased in value over time.  Here are three reasons why one should consider investing in stocks.

Should I Invest in Stocks? Reason 1:

U.S. stocks have outperformed almost every other investible asset over the past 100 years, especially government and corporate bonds.  People often think of bonds as a safer alternative to investing in stocks, but what they really mean by “safer” is less volatile.  Yes, stocks can fluctuate with higher highs and lower lows in a given period of time, but over the long-run they will outperform bonds.

Should I Invest in Stocks?  Reason 2:

Stocks are the easiest and safest way to build wealth.  What I mean by this is that continual investment in stocks will yield higher and higher returns over time if you let your returns compound.  Compounding interest is a great thing when it comes to building wealth and all it takes is two simple steps:

Step 1: Continued investment and reinvestment

Step 2: Time

By continually putting money into your stock investment on a consistent basis and allowing your returns to reinvest, after a period of time you will be able to build a substantial amount of wealth.  And again, since stocks outperform other investments over the long-term, you are compounding a greater percentage each year.

Should I Invest in Stocks?  Reason 3:

Because Warren Buffett says so!  At the time of this post, Buffett’s net worth is estimated to be in excess of $75 billion USD.  It has been said that he is the greatest investor the world has ever seen.  How did Warren and others like him make their great fortunes?  Through investments in stocks.  Warren has constantly invested in companies throughout his time via stock purchases in what he calls “value investments”, which is a simple way to say in companies he believes to be cheap in valuation.  Buffett has gone so far as to say that even upon his passing he would like the remainder of his fortune to be placed in a low-cost index fund that mirrors the S&P 500.  The greatest investor ever believed and still believes in the power of stocks.

Hopefully by now you have been convinced that investing in stocks is the right thing to do, but how do I get started?  Simple, to begin investing in stocks I would recommend investing in a mutual fund that covers a wide range of the U.S. Stock Market as well as knowing more about forex trading online. Investment firms such as Vanguard and Fidelity offer these sorts of funds that will allow you to get exposure to the broad range of the U.S. Stock Market and begin reaping the rewards.