The Guilty Investor

Can you run out of money? Yes, you definitely will run out of money, unless you take a conscious steps towards laying down some strong foundational steps. It really does not matter much whether you are making $60,000 per year or $200,000. If you do not save and invest, the future of a general family is bleak. I might be sounding too aggressive and pessimistic, but I feel it is better to be a bit worried today, instead of in future when you really need the money. I understand that I cannot make a sweeping generic statement because everybody is unique, with unique situations, but here are a few facts to ponder upon. I have read many times people commenting that they aim to save at least about $100,000 for retirement. Do you think $100,000 sounds like a big amount?  For a moment, let us not consider any alternate income sources such as social secruity income Assuming annual before-tax return of 5% on the amount Assume that you may need to withdraw about $700...

I am no investment guru but do know that I need to save money for the future. Yet, saving itself is not enough because thanks to inflation , money kept in your bank account is losing its value fast! We need to invest to help make our money work as hard as we do. What's more, most major banks in the US do not give any tangible interest on savings/checking account. If you are in the USA, either as a citizen, permanent resident, green card or even on a visa such as H1B or L1 then you should invest without a doubt. You may choose not to invest in the USA if you plan to leave the US after a year or two for good, in which case I would assume you are investing in your primary/target home country. The question is where to invest today in the US. Time is money, literally and hence you need to act fast and make your hard earned money last longer. As I mentioned above, saving is not enough as money in your checking/savings account is actually getting depleted. You need to invest, by starti...

My friend recently told me the superb 30% returns he got from stocks last week. My other colleague was discussing how the future college costs would be around $350,000 for a 4 years course. I read somewhere the rising cost of healthcare or even of raising a child! On a lazy weekend, when I sit sipping my morning coffee and recalling these conversations, I sometimes feel a shiver run down my spine. I feel guilty.  I feel guilty that I might not be on the right track to confidently say if I am saving and investing enough. A lot of what-if questions arise. I feel guilty, that though with gods grace I am working in a full-time job with a pay check coming at the end of every month, perhaps the saving is not invested in the most efficient manner. Every now and then I do read personal finance blogs, articles, investment blogs, view what others have to say on video channels, but then I feel guilty that I did not act to do something tangible with any little money which I m...