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Financial Freedom After 60: The Best Investment Options for Seniors

Written by R. A. Stewart

 

Your age is a crucial factor in establishing your savings and investing strategy. Your 20s, 30s, 40s, and 50s are your savings years. It is these years when you build up your assets. 

Your 60s and 70s can be considered your spending years. It is when you tick off items on your bucket list while you are able to.

That does not mean that you do not have to work, a lot of older people are taking this option, not because they cannot make ends meet on their pension, but because they enjoy what they are doing.

In New Zealand, retirees will have access to their kiwisaver account once they reach the age of 65. Money invested in kiwisaver will be in growth, balanced, or conservative funds. Most people during their working life opt for growth or balanced funds.

It is time to decide whether to stay with the status quo or invest in more conservative funds. 

Your age and your health are the two most important factors in deciding which fund to invest your money in. 

Older people do not have time on their side to overcome financial setbacks such share market falls and so forth, therefore if you are 60+ it is a good idea to lean toward more conservative investments but still retain some exposure to risk.

It is worth mentioning at this point that New Zealand financial advisor and writer Frances Cook has a formula for calculating how much exposure you should have based on your age, and it is this…

Subtract your age from 100.

If for example you are aged 60 then only 40% of your portfolio should be invested in the share market.

I do not necessarily agree with this formula and my exposure to the share market is more than her formula suggests I have.

However, that is a personal choice; one that I do not necessarily recommend to you because your circumstances will be different as they are for different people.

If you are connected to the internet and you have a lot of spare cash in your account then I suggest that you place most of your money into an account that is not connected to internet banking. This is to reduce your chances of becoming a victim of internet scammers. 

With internet banking being the norm, this could be difficult in the future though.

In any case I still believe that it will pay to arrange your finances so that if you fall victim to a scammer then not all of your money will be lost. 

Don’t leave all of your money in the one account for goodness sake as some victims of scammers have.

If you are traveling then make sure you don’t have access to your life savings because if you do then so will be a scammer if they manage to get hold of your login details. What I am trying to say is you should leave your entire life savings in an account which you use to do your daily spending. Keep it in a separate account from the account you do your day to day banking. The 

Scammers have all kinds of ways to trick people into handing over their login details.

Anyone can be a victim so don’t be proud by saying “I am not that stupid.”

As you get older you will have to invest more conservatively; that does not necessarily mean transferring from growth to conservative funds but investing some of your current savings into low risk accounts. The deciding factor is your timeline. How soon you need the money and funds which are going to be used within 12 months are best invested conservatively.

 

www.robertastewart.com

 

ABOUT THIS ARTICLE

This article is of the opinion of the writer and may not be applicable to your personal circumstances. Feel free to share this article. You may also use this article for your website/blog or as content for your ebook.

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3 Habits which can make you rich

3 Habits which can make you rich

Written by R. A. Stewart

“You don’t have to be rich to invest but you have to invest to be rich.”-Unknown

Forget the lottery, here are three habits that can make you rich beyond your wildest dreams. It does not matter how old you are, how much money you currently have in the bank, or whether you have any experience at investing. If you can look beyond your own personal circumstances and develop these three habits then you are well on your way to financial success. 

So you may be wondering what is the magic formula for financial success?”

Number one habit to develop is:

The Habit of Saving.

Simple, isn’t it. You simply spend less than you make and whatever is leftover is your excess.

All of us have an ordinary savings account where our payment from whatever source goes into. This really should be named a spending account because we spend money from this account using our bank card. It is a good idea to transfer money into another account which is used for saving up for whatever it is we are saving for and this account should not be linked to internet banking where scammers are able to access it.

Saving money gives you financial security and enables you to cover the unforeseen emergencies which crop up from time to time. Medical and dental emergencies, car and household appliance repairs can be expensive so having savings behind you cushions you against these kinds of shocks.

Saving also enables you to reach your financial goals and helps you to become wealthy.

The Habit of Investing

Most people are able to save something from their pay packet but comparatively few people invest that money. For those people their savings becomes spending money. In the end these people have nothing to show for their years of toil and their options are limited due to their lack of finances. 

Investors on the other hand have more options available to them later in life because finances are not a problem. 

The habit of investing also increases your financial literacy which in turn helps you to make better choices when deciding on where to invest your money. 

This reduces financial stress, increases your independence, and prepares you for retirement.

The Habit of Reading

Reading books increases your knowledge. The habit of reading books of a financial nature will increase your financial literacy. It is a fact that most people are not financially literate. They may know how to negotiate loans and how to get a credit card but people who are intelligent do not purchase stuff on credit because they know that it only means paying more for whatever they are buying.

You do not have to spend too much money buying books when your local library has good books available. You might also pick up some good books at your local charity store.

On the internet you can find lots of useful information on personal finance. Ask chatgpt to provide some answers to any questions you have or go to quora.com which is a question and answer site. You need a gmail address to register with quora.

About the article

The information in this article is of the opinion and experience of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this as content for your website or ebook.

Read my other articles on www.robertastewart.com

Investing with Sharesies is an accessible and straightforward way to invest in the stock market. By following these steps, you can get started on your investment journey and start building your wealth. However, before making any investment decisions, it is essential to do your research and seek professional advice if necessary.

 Join Sharesies here

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Book Review: Think and Grow Rich 

Written by R. A. Stewart

Think and Grow Rich by Napoleon Hill is one of the world’s best selling self help books and has been for over 70 years.

Napoleon Hill had spent twenty years compiling information for the book and during that time he interviewed the most successful men in history to learn how they acquired their fortunes. 

He reveals the one sure way to overcome all obstacles, achieve any ambition, and bring success to any life.

It is all a matter of knowing what you want and having the desire to make your goals come true.

The book is not one that advises you where to invest your money but rather develops the kind of traits which have made others successful.

The subjects covered in this book are:

Thoughts are Things: Using the power of your mind to get whatever you desire.

Desire: Transforming your desire into concrete action

Faith: How you can rise to limitless heights if only you had faith.

Auto Suggestion: Train your mind to get amazing results with the use of auto suggestion

Specialized knowledge: Your education is what you make it, and you can find the knowledge that takes you from where you are to where you want to go. 

Imagination: This is what is required to turn your dreams into reality.

Organized Planning: How to use your master mind for success.

Decision: The ability to make decisions quickly will help you to achieve more.

Persistence: The ability to persevere is important.

Power of the Master Mind: This secret involves choosing mentors who are where you want to be.

Sex Transmutation: How women help men become successful, and how to take advantage of the ancient truth.

The Subconscious Mind: How your subconscious mind waits like a sleeping giant to back up every plan and purpose.

The Brain: How to use your brain more effectively.

The Sixth Sense:  How wisdom opens the door to the road to wealth.

 The Six Ghosts of Fear: Take inventory of yourself, and see if any remnants of fear stand in your way.

Weaknesses

While the book has its merits it also has its weaknesses, and one of these is that it does not take into account the economic landscape of today and the barriers which many people face in their day to day lives.

Conclusion

Think and Grow Rich is a classic for a reason and while it is no magic formula for success the steps to success explained in the book are a starting point for those wanting to learn the mental aspects of success.

Enjoyed reading this article?

Visit my site www.robertastewart.com for more articles.

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Book Review: Rich Dad Poor Dad 

 

Written by R. A. Stewart

Rich Dad Poor Dad by Robert Kiyosaki is one of the best selling finance books of all time. It tells the story of two Dads in his life, his biological father who he called “Poor Dad” and his friend’s father, who he called “Rich Dad.” 

His Poor Dad worked diligently all of his life but could not get ahead, his Rich Dad was smarter with his money and was rich. The Rich Dad mentored Robert and helped him become financially literate.

It is not how much money you make but rather what you do with it after you make it and that is the basic theme in this book.

 

In the book, Robert focuses on getting rich through financial literacy, investing, and entrepreneurship.

The most important lesson is to know the difference between assets and liabilities. Kiyosaki reminds readers several times throughout the book the importance of building up your assets and minimizing your liabilities in order to build up your financial portfolio. He makes the point that many people mistakenly think they are acquiring assets when in fact they are accumulating liabilities. A perfect example is of a house which though it may be a family’s biggest purchase during their lifetime is a liability because it costs money to keep and maintain.

Kiyosaki also stresses the importance of a financial education and claims that the education system does not teach financial literacy to the detriment of children.

The book also explains the concept of having money work for you instead of working for money. Poor Dad had the working man’s mindset of working a set number of hours per week for money while the Rich Dad focuses on acquiring and building assets which generate an income.

Writing Style

Robert Kiyosaki writes in a way as though he is a mentor to his readers rather than if he was simply writing a textbook which resonates with so many readers.

The book has had its critics though, one is that it is too simplistic with not enough actionable advice on how to create and build wealth. It has also been criticized for focusing on financial gain and little emphasis on the social or environmental impacts of wealth building. 

Kiyosaki’s dismissal of education does not resonate with everyone who values the education system. He does highlight the shortcomings of the education system, but his message is not going to go down well with parents who are trying to encourage their children to focus on their school work.

Conclusion

Rich Dad Poor Dad is certainly a very good book as far as improving your financial literacy is concerned, but the information needs to be applied according to your personal circumstances. I have no hesitation in recommending Rich Dad Poor Dad as a must read for anyone wishing to get ahead in life.

About this article: You may use this article as content for your blog/website. Feel free to share this article with others.

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The cost of a high lifestyle

The Cost of a high lifestyle

Written by R. A. Stewart

There is a huge cost attached to living a luxury lifestyle and this cost will be felt sometime into the future. It is when some of life’s big ticket items will crop up and unless you are prepared for them you will most likely end up borrowing to pay for them. This means that you will be paying interest for such items which means that you will be paying more for them than you should.

I remember as a teenager we were helping a neighbouring lifestyle farmer build a cattle yard. The farmer’s name was Jack, an Irishman. He wanted the cattle yard to look nice but Dad said to him, “There is no profit in having a cattle yard that looks nice.” 

On another day, we went out to Jack’s place to spread fertilizer. It was superphosphate. Dad, my brother Jimmy, and I were there and Dad said to Jack, “I have three fertilizer spreaders in the back of the van.” Jack with a curious look on his face, replied, “Let me see them”.

Dad opened the van door to reveal three shovels. Jack saw the funny side.

We then went about spreading superphosphate around the paddocks.

Why spend more money than is necessary on whatever task you are involved in.

Years ago I was working in hospitality in one of New Zealand’s tourist hotspots (Franz Josef Glacier) when the Head chef drove to the hotel we were working at in a brand new car. A colleague told me that he had bought it for $20,000. My response to that was, “If that was me, I would have bought the cheapest car and invested the rest of the money.

There is a cost of living a champagne lifestyle on a lemonade budget and that cost is financial problems later on down the track. Sooner or later, big ticket items will appear in your life and these will sometimes cost you thousands of dollars. A new car, marriage, followed by children, house deposit, dental and medical bills, and retirement.

Sensible people will prepare for these things by saving a portion of their money every week and investing it in the appropriate funds.

Some people on a good salary spend every single dollar or pound they make living the kind of lifestyle that impresses other people. A flash car, flash clothes, nights out, and have little or nothing to show from working at their job.

All of this because they were living beyond their means. Learn to live modestly and life will be easier for you. This all starts when saving money becomes a habit. That money invested will grow your wealth and when life’s big ticket items comes along then you will be in a position to pay for them rather than borrow.

About this article: You may use this article as content for your website/blog, or ebook. 

The opinions expressed in this article are from the writer’s own opinion and may not be applicable to your circumstances therefore discretion is advised. Read my other articles on www.robertastewart.com

 

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The Art of Diversification

The Meaning of Diversification

Written by R. A. Stewart

Diversification is a word that you will hear in investment circles, particularly when investing in the share market, but what exactly does it mean?

To put it in plain language, Diversification is when you divide all of your money between different asset classes and companies. Your total portfolio may be x amount of dollars; an astute investor will invest a certain amount in power companies, a certain amount in banks, a certain amount in insurance companies, and so on.

We often hear of horror stories whenever a company folds and the one that crops up is that investors lost their entire savings in the one company. Big mistake!

That is leaving all of your eggs in the one basket because you do not know what kind of misfortune will hit any particular company.

Government regulations and the economic cycle are out of the control of the company. 

Then there are trends which will have some influence over the bottom line.

There is no guarantee that whatever occurred in the past will repeat itself in the future.

Investment platforms such as Sharesies, Hatch, and Kernel Wealth in New Zealand and Robin Hood in the US enable the ordinary man and woman in the street to invest with a minimum amount of money. This provides an excellent education tool for people who are willing to increase their financial literacy by taking part in the share market.

There is another method of diversification and that is by investing in managed funds or as they are described in the US, Mutual Funds. This is where your money is combined with that of other investors. It is a case of safety in numbers.

Managed Funds provide investors with three options, Growth Funds, Balanced Funds, and Conservative Funds.

Growth Funds are higher risk, higher growth stocks aimed at long term investors. That is investors who are investing for 10 years or more. The reason why they are more suitable for long term investors is because they have more time to recover from a market meltdown, which is more liable to happen with growth funds. The young ones are more suited to Growth Funds because they have more time to recover from a share market crash.

Conservative Funds are safer with investors unlikely to see the kind of falls occurring in the growth funds but the flip side is that an investment in conservative funds will not grow as fast.

Financial advisors in New Zealand have often stated that young people should invest their retirement savings in growth funds to maximise returns. 

Balanced Funds are a combination of Growth and Conservative Funds. They basically give you the best of both worlds.

Diversification does not mean that you should choose an online investment platform such as Sharesies or Robinhood and invest your whole life savings there. The reason is because there have been instances in the US when these types of online platforms have folded.

Some readers may say, “I know/read about an investor who put all of their money in one company and made a killing.”

My answer to that is, “Greed gets the better of people such as this in the end,”

What is likely to happen is that they will try the same thing again and again and give all of their previous gains back plus a whole lot more.

When you hear stories of so and so making a killing, what you do not hear about are those who tried the same thing and lost all of their money.

Be sensible with your money and you will reap a harvest in the end.

About this article

The contents of this article is of the writer’s own experience and opinion and may not be applicable to your personal circumstances, therefore, discretion is advised. You may use this article as content for your blog/website or ebook.

Read my other articles on www.robertastewart.com

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My Thoughts about BItcoin

Written by R. A. Stewart

Bitcoin is an alternative investment for those investors who do not mind the roller coaster nature of cryptocurrency. If you have the risk profile to be able to stomach the prospect of losses and are sensible in how you approach this form of investing then you can make money from Bitcoin as others have done.

Here are some things you should keep in mind:

1 Bitcoin has a short history

The disadvantage of a short history is there is less data to work with for making future predictions, but it should be kept in mind that past performance is no predictor of the future. Using the share market as an example, one can find companies that have made it through the 1987 sharemarket crash. This is a sign of resilience. No one knows how a future share market meltdown will affect the price of Bitcoin because it has not had to deal with such an event.

2 Something is only worth what others are prepared to pay

Bitcoin is only worth what others are prepared to pay, in other words, it is demand that determines its price. This rule also applies to other forms of investing such as gold, art, property, and the share market.

3 Only invest discretionary spending money in Bitcoin

Only discretionary spending money should be invested in Bitcoin. This is money you can fully afford to lose. Money in this category is money you spend on entertainment and hobbies. If you can transfer some of this spending money into Bitcoin, you may just make a bit of money. What I am saying is, you should never spend what you cannot afford to lose in Bitcoin. There is a saying,”Scared money rarely wins”.

4 Diversify

It is important to diversify with cryptocurrency investing as it is with investing in the share market, but just how does one do this when Bitcoin is the main player in cryptocurrency with Ethereum coming in a distant second. I am talking about investing with different crypto exchanges such as Coinbase, Blockchain, and Kraken. There  are a lot of others. A few have gone under which have caused investors to lose a lot of money.

5 Don’t get greedy

Greed is the downfall of a lot of investors. It is tempting to think, “If I invest my life savings in Bitcoin, I will make a killing by xxx date. You could also lose it all. Always remember that for every person who made such a killing there are others who lost their shirt. What usually happens is the one who made the killing will usually try the same thing over and over and give back those gains.

6 If there is an opportunity for capital gain

There is also the chance that you may lose. If you expect to never lose any money at some stage then Bitcoin is not for you. Bitcoin investing requires you to have the kind of mindset that can cope with the roller coaster ride which characterizes cryptocurrency otherwise you will panic when things don’t go as expected. Investing requires a cool head at all times, even when the newspaper reports tell you that you have lost your money. The truth of the matter is that newspapers do not always give you the full story.

I remember when the price of Bitcoin peaked in November 2021 then halved a year later. One newspaper article said, “Investors in Bitcoin have lost half their money.”

That is only true if you had invested in Bitcoin at its peak because if I had sold Bitcoin when the paper was saying, “Investors have lost half of their money,” I would still have received more money than my original investment.

About this article

The content in this article is of the writer’s own opinion and experience and may not be applicable to your own circumstances, therefore discretion is advised. You may use this article as content for your website, blog, or ebook.

Read my other articles on www.robertastewart.com

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What does your Financial Future look like?

Written by R. A. Stewart

Your future is fully dependent on today’s actions. As far as finance is concerned, it is important to know where you are going and decide on a strategy to get ahead in life. You may be working at a minimum wage job doing menial tasks but you can still develop a plan for your financial future. It is not how much you make but what you do with what you receive in your paypacket that counts.

Look at everything you spend and take a long term view of it. I know some people who take lottery tickets every week. If you are just taking the basic ticket for a power ball, it costs $12. That is around $600 per annum.Think of what can be done with that.

Take a moment to think, “What can I do today that my future self will thank me for?

I can tell you now, that there will be no one who will reach the retirement age and regret that they contributed to a retirement scheme all their lives.

It is the same with financial education. It will enable you to make the best choices for your money. Financially illiterate people tend to fritter their money away on things and then when the car breaks down there is nothing in the kitty to fix it. No one is going to regret that they gained a financial education.

You don’t have to be rich to invest, but you have to invest to become rich. Most people think, “I will do this or that when my ship comes in,” but that day never arrives. 

Building a solid financial base requires planning. Joining a retirement scheme is a must. Developing the saving habit is important. The sooner the better. It will then make life easier further on down the track.

Young people have the advantage of time on their side. This means that there is more time for them to recover from a financial hiccup such as a share market meltdown. Financial experts advise the older generation, particularly, the retired ones to be more conservative with their investments. This means taking on less risk. New Zealand financial advisor Frances Cook has a formula for working out how much investors should have in the share market. She says, “Subtract your age from 100”, so a 65 year old, according to her formula should only have 35% of their savings in the share market.

I do know of older people who have a much higher percentage of money in the markets than they should do according to Ms Cook’s formula. I am one of them.

As long as one knows the risks that they are taking on and will take responsibility for any losses that may occur instead of pointing the finger at others when something goes wrong, then why not go for it?

The main thing to remember is that if the loss of your money is not going to cause you any hardship, then by all means take some calculated risks.

Everyone has their own personal circumstances as far as finances go; there is no one size fits all. It is a matter of deciding what your priorities are and what you are going to sacrifice. 

About this article: This article is of the experience and opinion of the writer and may not be applicable to your personal circumstances therefore discretion is advised. You may use the article as content for your ebook or blog.

Read my other articles on www.robertastewart.com

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People who should never buy Bitcoin

Written by R. A. Stewart

Bitcoin is the currency of the twenty-first century according to those who are passionate about this type of investing. People who get involved in crypto currency such as Bitcoin or one of the others must understand the risks involved. It is a volatile form of investing. Because of the risks involved there are some people who should never invest in crypto currency. 

Here they are:

1.People who are in debt

If you have a debt to pay then your responsibility is paying off that debt, and the sooner, the better. It makes no sense to be investing in something in order to grow your money yet be paying interest on your debts. People who have debts to pay have no discretionary spending money until their debts are paid.

  1. People who are saving up for a house deposit

The best investment for your house deposit money is something which is more conservative such as balanced managed funds or conservative managed funds. Bitcoin is not the place for your house deposit money because if you did go ahead, invest all of your house deposit money in Bitcoin, most of it could disappear at the drop of a hat, such is the volatility of Bitcoin.

  1. People with Children

I believe that people who have children should not invest in Bitcoin, unless they are wealthy, and that any losses are not going to affect their lifestyle. People with children have the young one’s future to consider when making plans for the future.

  1. People who are Timid

People who cannot stomach the thought of losing money whether it be betting on the horses, investing in cryptocurrency, or playing the share market should definitely leave Bitcoin alone. Investing in crypto-currency is certainly not for the faint-hearted.

  1. People who have a mortgage

For the same reason as those with consumer debt. Paying off any debt means you will have less interest to pay.

  1. People with a student loan

If you have a student loan, then you are responsible for paying that back and should never invest in Bitcoin until that debt is paid. 

Never begrudge having a student loan to pay because investing in future education is an investment in the future. The key is to choose a course which will lead to a career you really want to do.

Investing in Bitcoin should only be done with discretionary spending money and not with money which is needed for a purpose such as a car or overseas travel. 

Here is a question for you, “Should retired people invest in Bitcoin?”

My answer to that question is, “If they can afford to lose it!”

If a retired person spent a grand or so on an overseas holiday, that is considered cool by some, yet, if they lost a grand on Crypto currency, these same folk would think that’s foolish.

Whether Bitcoin has risen or fallen, it is on paper only. It is only a profit or loss when it is sold. Always remember, something is only worth what others are prepared to pay for.

About this article: You may use this article as content for your blog or website. The information contained here is of the writer’s opinion and may not be applicable to your personal circumstances therefore discretion is advised.

Checkout my other articles on www.robertastewart.com

 

Have some spare cash to invest in Bitcoin?

Then check out the Coinbase, a well-established crypto exchange. Coinbase makes it easy to buy and sell bitcoin. Check it out here:

https://coinbase.com/join/gochwv

 

Disclaimer: I may earn a small commission if you sign up with Coinbase.

www.robertastewart.com

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Pros and Cons of Mature Dating

The Pros and Cons of forming a new relationship late in life

Written by R. A. Stewart

A guy in a backpacking hostel asked me if I was married, and I said, “I don’t see the point at my age”. He said, “Some people get married in their nineties.”. 

I told him, “I just don’t see the point in that”.

Honestly, why would one ever consider it at that stage of life?

I have heard it said, “Everyone deserves happiness in their life”.

That seems to suggest that the couple were unhappy being single and if that is the case then they have a problem.

There is a saying, “love is blind,” and that is an apt summary of these late in life marriages because there are financial implications for these relationships. The main one being property ownership because each partner in the relationship is now entitled to half of all assets owned by them both. That may be fair enough but that inheritance which was intended for children or grandchildren may not be legally binding. As I understand it, when a couple enters into a new relationship, (marriage) then it means their previous will is now null and void and that they have to write a new one.

It is likely that when one of the partner’s passes on then the relatives of the remaining partner will get everything.

That means nothing for the family of the deceased.

Now, this may sound morbid or selfish when one speaks about money and relationships, but all of this has to be thought through. 

It is rather naive to think that there are no gold diggers out there who are willing to take vulnerable men to the cleaners, and these women will hang out on the same dating websites as their prey.

As for who gets what when someone passes; here is the order of priority.

  1. The spouse or partner 
  2. Children of the deceased
  3. Parents of the deceased
  4. Siblings of the deceased

Note: In New Zealand, if a couple have been living together in a de facto relationship for at least three years then everything they own is considered matrimonial property. 

This includes Kiwisaver, New Zealand’s retirement scheme, but only those contributions made during the term of the relationship.

It is no secret that there are men of an older generation who have been the victims of dating scams. The number one red flag in these scams is that a woman half your age contacts you out of the blue.

The number two red flag is that she wants to hasten the relationship, and the number three red flag is that she sends you some revealing photographs of herself. 

If someone can tap into your ego, and make you feel good about yourself they are on their way to taking advantage of you. 

Another method scammers will use is to manipulate your emotions. She will come up with a hard luck story and tell you that she needs money or this or that will happen. This strategy is called “manipulation by guilt.”

It is when someone tries to get you to do something by making you feel guilty.

You would think that men in their later years have acquired enough experience of human character, but then, you know what they say, “Love is blind!”

A lot of romance scam victims are too embarrassed to come forward and go to their bank or the police, but if you know someone in this situation, let them know that it has happened to a lot of others too.It is also important to know what your grandparents are doing behind a computer screen because it could mean that your inheritance is being sent to some stranger in a far flung part of the globe. 

About this article:

This article is of the opinion and experience of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You are welcome to use this article as content for your blog or website.

Read my other articles on www.robertastewart.com