YES Notes 10/17/07

  • Jeff Kemp came to speak to the group; we celebrated his birthday with some ice cream cake.
  • He increased his Net Worth 5 fold and retired at age 40.
  • His contact information is 235-5721,
  • He presented us with some basics on finances but if you want more information you can attend his 7 week session, it is free and held in the Oshkosh North Auditorium starting on January 9th.
  • No-Load Funds, Contact Information
    1. Vanguard 1-800-662-7447 (Jeff’s Favorite, they specialize in index funds)
    2. Fidelity 1-800-544-8888
    3. TIAA-CREF 1-800-223-1200
    4. American Century 1-800-345-2021
    5. T. Rowe Price 1-800-225-5132
    6. Dodge & Cox 1-800-621-3979
  • Four Tips for Entrepreneurs
    1. Prioritize what you expend your energy on
    2. You are not entitled to success, you must earn it
    3. Adversity reminds you to never get complacent
    4. Your choice of enterprise must be fun for you or you will burn out
  • How to Minimize Your Risk in Investing
    1. Minimize your expenses on investments
    2. Use tax efficiency in investing
    3. Asset allocation - have a mix of stocks and bonds, respond to age, economic cycles, etc.
  • Tips for Investing vs. Overspending
    1. Reward yourself for saving
    2. Surround yourself with people who have “the savings ethic”
    3. Understand that consolidated debt to get a lower interest rate doesn't address the real problem
    4. Apply the principles from this class to learn how to maximize your hard earned savings
  • Investment Objectives Age 10-18
    1. Learn that saving money is to be admired - encourage children to save and make them feel proud to do it instead of making it a penalty.
    2. Start investment career with something basic; I-bonds or CDs. Only use savings accounts when you are going to spend the money in the next 1-2 years: you will end up losing money, after inflation.
    3. Learn what inflation is and how it affects the purchasing power of a dollar.
    4. Learn that debt is a financial burden. The average junior in college has $3,000 on a credit card with double digit interest rates. We are born chasing success, through education we can change this and stop acting out of instinct.
  • Investment Objectives Age 18-25 *Most Important*
    1. Open a checking account
    2. Starting building a cash reserve of $500-$1000
    3. Open a ROTH IRA in a No-Load mutual fund, check a target retirement fund
    4. Try to maintain a zero-balance credit card. Remember that debt is a financial burden. Pay your credit cards off before you invest.
  • Investment Objectives Age 25-35
    1. Crucial years for building the financial foundation for retirement
      • Start investing in your company’s retirement plan (401-K, 403-B)
      • Invest at least as much as the company will match
      • Contribute to IRA, if possible
    2. Aggressively pay down student loans
    3. Strongly consider home ownership (investment and quality of life)
    4. Purchase auto with cash, if possible.
  • Retirement
    1. When you retire, roll over your 401-K or 403-B into a traditional IRA with a No-Load mutual fund. Do this yourself, not through a financial planner.
    2. Stay away from annuities - extremely expensive way to invest your money.
    3. You can retire when you have Critical Mass, use The Rule of 25.
    4. Take the amount of money you need each year to live off of and subtract from that the amount you will be bringing (form Social Security, etc.) Then take this money times 25. This is how much money you should have before you retire.

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Last Updated: 10.29.2007