Tag: investing

Step 11 of 12 Steps to Financial Wellness-Start Investing

by Advantage One, posted in Budgeting, Lifestyle, Saving, Tips & Best Practices

[With your retirement funds up and running, you’re ready to give your money its best chance at growth through your choice of investment options.]

The world of investing can be vast and confusing, especially to a first-timer. There are so many decisions to make, and each one carries with it the risk of loss, or the promise of growth for your money. No worries, though; Advantage One Credit Union can help! Here’s how to start investing in five easy steps.

Step 1: Define your tolerance for risk 

If you’re investing, you’ll need to be prepared for the reality of potential losses. There is no such thing as a “sure thing.” But how much losing can you take? 

Determining your risk tolerance is an important way to ensure you’re completely comfortable with your investment path. Your risk tolerance will likely vary according to your age and the time horizon you’re working toward; your risk capital, or the amount of money you can afford to lose; and your investment objectives, or what you hope to gain through your investments. 

  1. Define your investment goals

Why are you investing this money? Do you hope to save enough money for a down payment? Are you trying to fund your retirement? Do you plan to use this money to pay for your child’s college education? Or, are you looking for a way to grow your money without any real plans for its ultimate use?

Identifying your investment goals will help you choose your investment vehicles and the amount of money you’re comfortable investing.

3. Determine your investing style

Next, you’ll need to find an investing style that suits your personality and investing goals. Here are your basic choices:

  • Active management–personally managing your investments. This can be a great choice for an investor who is confident in their knowledge of the market and can make decisions they won’t regret. It’s generally not a choice that’s recommended to new investors.
  • Broker/financial advisor–allowing an outsider to manage your investments. There are several kinds of brokers you can choose: Full-service brokers will charge a higher fee, but they will also manage every aspect of your investments, including estate planning, retirement planning, financial advice and more. Discount brokers will have lower fees, but offer fewer services. A financial advisor will make investment decisions, monitor your portfolio and make changes as deemed necessary according to your indicated risk tolerance.
  • Robo-advisor–an automated option that typically costs less than a traditional broker and works with your goals, risk tolerance level and other personal details.

4. Choose your investment account

You’re ready to choose your investments! Here are some options to choose from:

  • Bonds–a loan to a company or government entity that agrees to pay you back in a specified amount of years. You’ll receive modest dividends until the bond matures. Bonds are low-risk, but tend to offer lower long-term returns.
  • Exchange-traded funds (ETFs)–individual investments that are bundled together and traded throughout the day, like a stock. Share prices are relatively low, making ETFs a great choice for small budgets.
  • Mutual funds–professionally managed pools of investor funds that focus their investments in different markets. Mutual funds are inherently diversified and can be a good choice for beginner investors.
  • Stocks–a single share or a few shares in a specific company. If you’ll be putting all your eggs in one basket, be sure to research your chosen company carefully.

5. Learn to diversify and reduce risk

Once you’ve started investing, you’ll need to monitor and adjust your portfolio on a regular basis for optimal performance. Most importantly, you’ll want to make sure your portfolio is diversified, or that your funds are divided across different investments and classes. Diversifying helps reduce your risk of loss by ensuring that one poorly performing investment won’t bring down your entire portfolio.    

Getting your feet wet in the world of investing can be super-exciting, but daunting. Follow the steps outlined here to get started.

Your Turn: Have you recently started investing? Share your best beginner tips with us in the comments.

Broke Millennial: Stop Scraping By and Get Your Financial Life Together

by Advantage One, posted in book review, Budgeting, Credit, Lifestyle, Reviews, Saving, Tips & Best Practices, Uncategorized

Title: Broke Millennial: Stop Scraping By and Get Your Financial Life Together 

Author: Erin Lowry

Paperback: 288 pages

Publisher: TarcherPerigee

Publishing date: May 2, 2017

Who is this book for? 

  • Cash-strapped 20- and 30-somethings who are always stressing about money.
  • Anyone looking to take control of their financial health.

What’s inside this book?

  • A step-by-step guide to take you from broke to financial master.
  • Tips and tricks for tackling every kind of money situation, in addition to basics, like investing, credit card debt and budgeting.
  • Anecdotes from Erin’s own journey from a debt-crushed millennial to a money master who successfully negotiated a 40% raise.

 4 lessons you’ll learn from this book:  

  1. How to understand your personal relationship with money.
  2. How to manage student loan debt without falling into a panic.
  3. How to successfully navigate social outings in which you’re the only broke one among your friends.
  4. How to find out about your partner’s true financial health.

4 questions this book will answer for you:  

  1. Should I treat money more like a Tinder date or a marriage?
  2. Is it possible to conquer a mountain of debt without getting a massive windfall?
  3. How can I learn about money on millennial terms?
  4. How can I get on the same money page as my partner?

What people are saying about this book: 

“Broke Millennial takes the typical preaching and finger-wagging out of money lessons and replaces them with humor, empathy and a fun, pick-your-financial-path twist, while offering helpful and practical advice to successfully navigate all the financial questions you’ll face in the real world.”— Farnoosh Torabi

“Rich with specific advice to guide readers on the path to financial wellness. Millennials who may be overspending because of #FOMO need to read this book stat!”— Bobbi Rebell

“Thinking about money, especially when you don’t have much, can be painful. But Erin Lowry shows that you don’t need to be a mathematical genius to get on the right track. She makes it easy for people to build a financially healthy plan for life. Spend some time with this book, and your financial decisions and confidence will improve, no doubt.”— Nicholas Clements

“If you’re looking for a book to give to a recent grad, your friend who has no idea what a budget is, or just want to read a personal finance book from someone like you who’s been there…you absolutely need to grab a copy of Broke Millennial.” — Jessica Moorhouse

Your Turn: What did you think of Broke Millennial? Share your opinion in the comments. 

Gen Z Money $ense: A Personal Finance and Investing Guide

by Advantage One, posted in book review, Budgeting, Lifestyle, Tips & Best Practices, Uncategorized

Title: Gen Z Money $ense: A Personal Finance and Investing Guide

Author: Ella Gupta 

Paperback: 320 pages

Publisher: New Degree Press 

Publishing date: May 22, 2021

Who is this book for? 

  • Gen Z readers trying to navigate the financial landscape. 
  • Readers of any age looking to broaden their financial knowledge and to learn how to grow their wealth or manage money more effectively.

What’s inside this book?

  • A comprehensive guide to the world of finance, complete with down-to-earth analogies and fun facts on every topic.
  • Pragmatic financial tips on filing taxes, robo-advisors, cryptocurrency, investing and more. 
  • Expert insights from financial experts, including Karen Finerman, JJ Kinahan, Ahdrew Ross Sorkin and Jill Schlesinger. 

4 lessons you’ll learn from this book:  

  1. How to take charge of your financial future.
  2. Why it’s best to start investing at a young age.
  3. All about the blockchain and how it works.
  4. How to understand trending financial topics like ESG investing.

4 questions this book will answer for you:

  1. Why does Gen Z have a unique relationship with money?
  2. How can I start investing?
  3. Why is Gen Z positioned to achieve substantial wealth?
  4. How can I learn to manage my money as naturally as I drive a car?

What people are saying about this book: 

“Ella Gupta is money-wise beyond her years. It’s remarkable that someone her age has the interest and knowledge to write this book, but that speaks to just how intrepid Gupta is. With a dearth of financial literacy among young people, here is a book to address that problem.” – Andy Serwer

“A wise read not just for Gen Z but for all generations. Ella Gupta does an excellent job explaining the fundamentals of investing in a clear and fun way, while offering practical and immediately actionable advice.” – Burcu Esmer

“In Gen Z Money $ense, Ella Gupta provides a financial roadmap that should be required reading in every high school in America.” – Tim Ranzetta

“Ella has put so much thought and passion into this book. Investing your time reading it will surely pay dividends that will be hard to measure.” – Lauryn Williams

Your Turn: What did you think of Gen Z Money $ense? Share your opinion in the comments. 

Financial Lessons You Can Learn from Fantasy Football

by Advantage One, posted in Budgeting, Convenience, Lifestyle, Tips & Best Practices, Uncategorized

As summer winds down with autumn creeping closer, it’s time to start thinking fantasy football! Drafting the best team and guiding them toward the championship takes knowledge, dedication, skill and real talent. Do you have what it takes to be a fantasy football champ?

Whether you do or do not, know that fantasy football is so much more than just a super-absorbing hobby. You can actually learn a lot about money management and growing your wealth from the game. Here are five financial lessons you can learn from fantasy football.

  1. Do your research

Every fantasy football aficionado can tell you that your team’s performance throughout the year significantly depends on that one day (typically) in August: Draft Day. Knowing which NFL players to “draft” to your team is crucial to its success. If you sail into this uber-important day unprepared, you’re essentially setting yourself up for failure. Instead, in the weeks leading up to draft day, the true fantasy football pro knows to listen to podcasts from training camps, research potential trades and learn about past performances of various players. Come prepared for draft day and you will make better decisions. 

In personal finance, the rules are similar. When choosing a place or company to “draft” for sinking your money into, you’ll want to do as much research as possible and ask lots of questions: Is this investment secure? Is this company projected to experience growth over the next few years and beyond? What kind of annual gains can I expect to see from this stock? What values drive this company’s culture? Find out as much as you can about any potential investment before forking over your money.

  1. Diversify

In fantasy football, it’s important to diversify your team and to draft players who excel at various positions in real life to ensure the most wins. In finance, diversification is even more important. You’ll want to spread your investments over a mix of whole-market funds, securities and savings accounts. The more exposure your portfolio has among various asset classes and markets, the more protection it has against market volatility and inflation.

  1. Keep your investments private

To a true fantasy football manager, there’s no conversation topic as exciting as the team they’ve drafted and the wins they’ve scored. But to the uninitiated, there’s no conversation topic that can put them to sleep faster than your fantasy football league. Find like-minded fans to talk shop with, but otherwise, you’re best off keeping your observations and insight on the game to yourself.

Investments are similar. You don’t want to be the drag of the party, the office or the block. Talk about your stock performance with your partner, your financial advisor and maybe your mother. Otherwise, keep it to yourself.

4.   Don’t let personal biases impact your investments

It’s hard to leave your personal feelings and opinions behind when drafting players for your fantasy football team. You might want to pick your favorite quarterback, even though there may be one that’s more likely to put up massive stats available to draft. Or maybe you’ll plan to pick players from your favorite team, no matter what they are likely to produce during the season. Or maybe you’ll pass on a top-tier player simply because he’s on the rival team of your favorite. However, the real fantasy football pro knows to ignore personal biases like these and to focus on the skill of each individual player when drafting your roster. 

This rule parallels perfectly in the world of investing. Investors sometimes let their own biases get in the way of making sound financial decisions. For example, they may choose to keep their money in a stock that’s performing poorly because they’ve always loved the company. Or, they may feel personally invested in a stock they’ve purchased, but have a hard time letting go when it is clearly time to sell. To be a successful investor, it’s crucial to leave all personal biases behind when making decisions. 

  1. Assess your financial health throughout the year

While the decisions you make on draft day will have the biggest impact on your team’s performance throughout the season, the fantasy football pro knows how important it is to continuously monitor the performance of each player in real life. There will always be players who get injured, teams that change their strategies or don’t use your chosen player much and players who simply have unproductive seasons. You’ll need to keep an eye on what’s happening so you can make the best decisions regarding potential players on the waiver wire (players who are not on anyone’s team and generally available for any team to add) going forward. 

Financial health is never a set-it-and-forget-it affair. To achieve and maintain true financial wellness, you’ll need to monitor your budget, savings, spending habits and more throughout the year. It’s not enough to give your financial wellness a check-up at year’s end; review and assess your money management every few weeks for the best results. 

Fantasy football–it’s so much more than an addictive hobby! Fantasy football can teach you financial lessons for life. 

Your Turn: Which financial lessons have you learned from fantasy football? Share them with us in the comments.

Buy This, Not That: How to Spend Your Way to Wealth and Freedom

by Advantage One, posted in Budgeting, Checking, Credit, Debit, Lifestyle, Saving, Tips & Best Practices, Uncategorized

Title: Buy This, Not That: How to Spend Your Way to Wealth and Freedom 

Author: Sam Dogen

Hardcover: 336 pages

Publisher: Portfolio

Publishing date: July 19, 2022

Who is this book for? 

  • Financial Samurai fans looking to learn more.
  • Readers of average economic status who want to learn how to build wealth and achieve financial freedom.

What’s inside this book?

  • The Financial Samurai’s unique approach to money management, which has been absorbed by an audience of 90 million over the past 13 years.
  • The Financial Samurai’s innovative 70/30 framework for optimal financial decision-making.

4 lessons you’ll learn from this book:  

  1. How to tell the difference between good debt and bad debt.
  2. The best way to invest on your own terms.
  3. How to create your own rules for spending.
  4. How to take the guesswork out of financial planning.

4 questions this book will answer for you:  

  1. Can I invest in real estate if I can’t afford to buy property?
  2. How can I build passive income streams that work with my goals and risk tolerance?
  3. What’s the best way to pay down debt?
  4. How do I optimize every dollar I earn so I can maximize my wealth?

What people are saying about this book: 

“Financial Samurai and this book have prepared me for life after basketball! A straightforward guide to live a balanced, financially free life. – Shaun Livingston

“A no-nonsense guide to living your best life now while also ensuring a financially independent future.” – Emily Chang

“A one-of-a-kind book! Bold advice from someone who’s not just done the math, he’s lived it. A must read!” – Kumiko Love

“Step-by-step, chapter-by-chapter, Sam shows how to make optimal money choices that focus on wealth building—not just saving for saving’s sake, but for living life on your terms.” – David Mcknight

Your Turn: What did you think of Buy This Not That? Share your opinion in the comments. 

Small Steps to Rich 2022: Personal Finance Made Simple

by Advantage One, posted in book review, Budgeting, Checking, Lifestyle, Reviews, Tips & Best Practices

Title: Small Steps to Rich 2022: Personal Finance Made Simple 

Author: Kenneth Jeffrey Marshall

Paperback: 333 pages

Publisher: Judicial Corporation

Publishing date: October 6, 2021

Who is this book for? 

  • Anyone interested in improving their financial standing, regardless of educational background, age or income.

What’s inside this book?

  • A simple, three-step approach for growing wealth and maximizing investments
  • The most current info on interest rates, contribution limits, tax deductions and other financial matters 
  • Clear explanations and guidelines on diversification, credit scores, stocks, homebuying, investing, mortgages, financial advisors, annuities, bonds, CDs, dividends, high-yield savings accounts, insurance, cryptocurrencies, 401(k)s, IRAs, ETFs, mutual funds, trusts and more

4 lessons you’ll learn from this book:  

  1. How to maximize investment returns with mutual funds and ETFs.
  2. How to lower your taxes with IRAs, 401(k)s and other advantaged accounts.
  3. How to slash costs on your mortgages, student loans and other debt.
  4. How to control biases that interfere with good financial decision making.

4 questions this book will answer for you:  

  1. How do I know when and how to hire qualified financial professionals?
  2. What’s the perfect amount to save in government-insured accounts?
  3. How do I avoid making poor decisions during times of market turbulence?
  4. How can I utilize trust funds and ITF accounts to provide for my loved ones? 

What people are saying about this book: 

  • “This is a great book if you want to understand how to manage your personal finances. Many things in this book might be obvious, but it puts forth a great model for you to follow the obvious things you need to do.” 
  • “An easy read, with great insight.”

Your Turn: What did you think of Small Steps to Rich 2022? Share your opinion in the comments.

Have it All: The Roadmap to Becoming a Self-Made Millionaire

by Advantage One, posted in book review, Budgeting, Lifestyle, Reviews, Tips & Best Practices, Uncategorized

Title: Have it All: The Roadmap to Becoming a Self-Made Millionaire

Author: Kris Krohn

Print length: 316 pages

Kindle file size: ‎ 4709 KB

Publisher: Uplife Press

Publishing date: Dec. 9, 2021

Who is this book for? 

  • Anyone looking to change the way they relate to money. 
  • Anyone looking for practical investment advice.

What’s inside this book?

  • Actionable tips for improving your financial reality.
  • A step-by-step guide for financial success. 

4 lessons you’ll learn from this book:  

  1. How to outsmart the old money rules and follow the new ones. 
  2. How to achieve true financial freedom. 
  3. How to create active, passive and positive asymmetric risk.
  4. How to find profitable Returns on Investment (ROIs).

4 questions this book will answer for you:  

  1. How can I unlearn all that society has taught me about money management? 
  2. What do I need to know to be a savvy investor?
  3. Can I really enjoy my life despite having limited financial opportunities?
  4. Can I improve my finances without a large windfall?

What people are saying about this book: 

  • “Kris goes into depth on different topics to cover everything from real estate to stocks and how to start building a financial portfolio and live a better life!”
  • “Insightful, motivational and really inspiring!”
  • “This book gave me the hope and encouragement I needed, that yes, I can have it all. I love how Mr. Kris Krohn tells us exactly how we need to break those limiting beliefs and allow ourselves to enjoy life to the fullest. This book is so relatable and inspiring.”
  • “If you’re trying to figure out how to become financially free and where to start, then this is the book for you. This is the book that will set you on the next level of your life and get you ready for financial freedom in three to five years!”

Your Turn: What did you think of Have it All? Share your opinion in the comments. 

The Best Way to Spend Your Paycheck

by Advantage One, posted in Budgeting, Career, Checking, Lifestyle, Saving, Tips & Best Practices, Uncategorized

Everyone loves payday, but too many employees don’t know how to allocate their paycheck in a way that best serves their financial needs. Use the tips outlined below to learn how to manage your paycheck responsibly. 

1. Automatically deduct contributions

Your first step in managing your paycheck is making sure you are deducting the optimal amounts. Your employer will likely deduct funds for your health care plan and taxes, but you can determine how much tax is withheld by changing a few elections on your W-4. If you receive too large a tax refund for the prior year, or you’re stuck with a big bill when you file, consider adjusting the amount withheld on your W-4. Also, be sure to take full advantage of any employer-matching offers for your retirement funds — don’t give up free money! 

2. Budget for necessities 

After your contributions are deducted from your paycheck, you’ll be left with your take-home pay, or net income. You’ll use this money for covering expenses until the next payday, so it’s best to budget first for necessities, such as your mortgage or rent payments, utility bills, insurance premiums, etc. You can use the “envelope system” to actually put cash away for necessities or set up a detailed old-fashioned budget, which prioritizes your needs. You can also choose to use the “50/30/20 budget” that sets aside 50% of your income for needs. 

  1. Budget for wants

Once you’ve set aside money for your needs, you can use some of the remaining funds for wants, or discretionary expenses. This can include entertainment costs, dining out and clothing, in addition to what you really need. Here, too, you can put away the cash you need for a spending category into an actual envelope, mark down the amount you can spend in that category on a paper or in an app budget, or simply keep in mind that 30% of your paycheck can be spent on these expenses. 

  1. Pay yourself 

Now that you’ve taken care of your needs and wants until the next paycheck, it’s time to think about the future. Put a percentage of the remaining funds into savings, including IRAs, college saving plans, CDs, investments, emergency funds and the like. Use your predetermined amounts, or 20% of your take-home pay, if using the 50/30/20 budget. If you have any outstanding consumer debt, be sure to pay toward it as well. 

  1. Don’t feel forced to spend it all

Many people mistakenly think they need to spend all of their paycheck before the next one arrives. If you’re left with extra money at the end of the month, there’s no need to waste it. You can beef up your savings, get ahead of your debt or stash some cash away for an expensive time of year, like the holiday season. 

Learning how to wisely manage a paycheck can take some time, but once you’ve got the hang of it, it will be easy and almost happen by itself. 

Your Turn: Do you have any tips on paycheck management? Share them with us in the comments.

Bitcoin and Cryptocurrency Trading for Beginners 2021: 3 Books in 1

by Advantage One, posted in book review, Credit, Debit, Lifestyle, News & Events, online security, Reviews, Saving, security, Tips & Best Practices, Uncategorized

Title: Bitcoin and Cryptocurrency Trading for Beginners 2021: 3 Books in 1: The Ultimate Guide to Start Investing in Crypto and Make Massive Profit with Bitcoin, Altcoin, Non-Fungible Tokens and Crypto Art

Author: Nicholas Scott

Paperback: 397 pages

Publisher: Independently published

Publishing date: April 11, 2021

Who is this book for? 

  • Aspiring cryptocurrency investors who are looking for advice on entering this unique market. 
  • Experienced cryptocurrency investors who want to expand their knowledge of cryptocurrency, non-fungible tokens (NFTs) and crypto art.
  • Readers who don’t want to take the risk of investing in cryptocurrency, but are interested in learning how it works. 

What’s inside this book?

  • A down-to-earth beginner’s guide into the world of crypto investing. 
  • Advanced analysis of the cryptocurrency market. 
  • Tips and tricks for making it big through cryptocurrency.
  • Strategies for choosing the perfect coin and keeping your investments safe. 
  • A step-by-step guide for creating and selling your own NFTs. 

3 lessons you’ll learn from this book: 

  1. How to make your first cryptocurrency investment.
  2. How to build the perfect cryptocurrency trading strategy.
  3. The 6 secret qualities of a high-value NFT.

5 questions this book will answer for you: 

  1. What is cryptocurrency and how does it work? 
  2. Is it a good idea to invest in cryptocurrency? 
  3. What are NFTs and why are they the currency of the future? 
  4. How can NFTs be used in the digital world?
  5. What is crypto art? 

What people are saying about this book: 

  • “Don’t know what a Bitcoin is? Confused by cryptocurrency and art? These three books explain what they are and how to invest in them. The author also explains how crypto art can be a profitable investment.”
  • “I found this book understandable and well written. I found the part on the NFTs really interesting. I used to be skeptical about NFTs, but after reading this book, I understood how they work and how they can be used as an investment.”

Your Turn: What did you think of Bitcoin and Cryptocurrency Trading for Beginners? Share your opinion in the comments. 

Ray Dalio Begins Investing at 12 with Savings from Caddy Job

by Advantage One, posted in Lifestyle

candid image of ray dalio smiling at the cameraThe son of a jazz musician, Ray Dalio grew up in Jackson Heights, Queens, N.Y., in the ’50s and purchased his first stock at the age of 12 with money he earned as a golf caddy. That stock was Northeast Airlines, and his shares would quickly triple in value.

It’s no wonder that he was interested in more investment opportunities as he got older. He went to Long Island University and clerked at the NYSE before attending Harvard Business School. Early jobs included working for Dominick and Dominick LLC and Shearson Hayden Stone.

In 1973, Dalio started Bridgewater Associates, his own hedge fund, out of a small New York City apartment. Today, 46 years later, it’s the largest hedge fund in the world with a portfolio value of more than $12.5 billion.

According to Forbes Magazine, Dalio’s net worth was $18.6 billion as of January 2019.
“While you can have virtually anything you want, you can’t have everything you want,” Dalio describes in his 2017 book, Principles: Life & Work.

“Life is like a giant smorgasbord with more delicious alternatives than you can ever hope to taste. Choosing a goal often means rejecting some things you want in order to get other things that you want or need even more.”

In other words, you need to give up some things in life to take chances at the things you really want, and this was a philosophy the financier has practiced all his life.

He also self-published a 123-page volume, Principles, which outlines his philosophy of investment and corporate management based on a lifetime of observation, analysis and practical application through his hedge fund.