ITA Wealth Management

Back on July 8th, I wrote about investor mistakes  Not saving sufficiently for retirement was the first item on my list. For minimum wage earners this is a problem as these families simply are living from hand to mouth day after day. The group I am thinking about are not in this class. I am thinking of the worker who withdrawals their 401 contribution as fast as possible, paying the penalty just so they can gain access to the money to purchase the latest gizmo.

There are many ways folks can capture a few extra dollars a month so as to have something extra to save. 1) Raise the thermostate to a higher setting so the air conditioner does not come on as quickly. This is also good for the environment. 2) Walk to the grocery store if possible. 3) Lower the heating temperature in the winter. 4) Make house payments every two weeks. This not only saves a tremendous amount of interest, but you also make one additional payment per year. If you are at the beginning stages of purchasing a house, believe me, this hint will save you thousands of dollars over a 25-year payment period. 5) Instead of buying something you do not need, save that money and invest it in stocks. 6) Continue to save when the market looks bleak, as it does right now.  7) Never pay interest on a credit card debt, but always pay off the total amount each month.

As I have mentioned many times, pay attention to “The Golden Rule of Investing” by saving as much as you can as early as you can.

Lowell Herr

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