Step 4 - Get Those Investments Going

We all need to Invest at least 15% of iour income in the stock market, the whole market. If we read some studies on the subject, we find that the entire market index fund performs better than 90% of other index funds. We want to find one with a low expense ratio and no costs.

There are many good options for investment Bank accounts. Fidelity, Vanguard, and bank of America all have free accounts at the time of this writing. 

This is not investment advise, but here is what we do. We use Bank of America, and we can use index funds or exchange traded funds. Find one with the lowest expenses that encompass most or the entire market if possible. Just search the stock codes on Yahoo or Google and read about them. Follow a few of them to a list on Yahoo Finance

Examples of Vanguard funds: VUG - VTI - VOO. Another really easy approach is to pick a target date fund bases on the year you retire. 

This is the largest mistake I made, aside from going into debt, is not realizing the wealth and power of my money and its ability to compound over time. It is the savings rate that's important and the time that money is in the market. The earlier we start the less we actually to invest. 

Everyone has a chance to be a multimillionaire and if we invest $3000 for our child when they are born in the SNP500 They can become a millionaire by the time they retire without another penny invested. That is the power of compounding. 

Chances are they'll be a millionaire by the time they retire without another penny invested. At age 20 we can save a $100 a month and that also will become a million dollars by the time we retire. Can you save a $100? I'm thinking that cable bill is costing you that first Million. How about that car payment $600 a month for something to drive back-and-forth every day that will lose half of its value within 5 years. Buy something that is $100 or $200 cheaper per month and invest the difference there is that million dollar retirement. If we had invested that $200 per month at age 20 that would be more than enough to make million dollar retirement at 65. 

WHERE TO INVEST

The goal is to save 15 percent of everything earned. 

First, get the company match

Second, max out your Roth IRA, and the wife's too

Third, go back and Max out the 401k

Don't over think this part, just start investing. Put it all in the 401k using a target date fund and figure it all out later. The most important part is just to start and keep the costs down as much as possible.       

Introduction - Do not get into Consumer Debt

Step 1 - Start a Rainy-Day Fund

Step 2 - Pay off all debts except the Mortgage.

Step 3 - Build the Real Rainy-Day Fund

Step 4 - Get those investments going.

Step 5 - Save for Education

Step 6 - Pay off the Mortgage Early

Step 7 - Become Wealthy and GIVE

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