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February 7, 2012 | | | Investing Challenge: The First Check-In | | | Homework assignment: It's tax time! Last year, the average tax refund was nearly $3,000. If you get a refund this year, don't spend it—invest it! And adjust your withholding so you'll bring more money home in your paycheck this year.
Last month, many of you embraced the Investing Challenge as your opportunity to get on the ball with your investing. You've committed to increase the amount you invest by at least $300 a month—and lots of you had plenty to say about how you're going to make that happen.
Challenger Snapshot
First, let's take a look at what you're doing so far to build wealth. In the survey included in last month's newsletter, half of you said you already have a retirement nest egg of $100,000 or more and are investing at least $500 each month for retirement.
That's exciting news, and what's more exciting is what the Investing Challenge can do for your future! By increasing your monthly investment by $300 for one year, you could add $122,000 to your retirement after 30 years at the stock market's historical average rate of return. Keep it up another two years, and you'll have an additional $327,000 after 30 years!
"Having an extra $200k in 30 years may be the difference in just getting by or enjoying retirement," one reader said.
Where's That $300 Coming From?
One reader said he'd have to "eat lint and live in a cave" to be able to invest an additional $300 a month. While we're not sure how serious that answer is, we are sure it's not necessary to go to extremes to take on the Investing Challenge.
Most folks said they could find the money by trimming their budgets. Some planned to invest their raises and bonuses, and others said they would increase their income with an extra job or by working overtime.
One reader broke the goal down even further by committing to writing a check for $37.50 twice a week to total $300 a month. "(It won't) feel like such a large amount on our day-to-day expenses."
Overcoming Uncertainty With Professional Advice
We also heard from readers who were nervous about investing at all.
"I want to take the Investing Challenge but don't know where to put my money," one reader said. Another told us, "[I'm] a little scared about the adventure, though, because of lack of knowledge in knowing what to do, what is the right thing to do, and who to trust."
Investing will always have its risks, but you can be more confident about your investing decisions by working with an advisor. Dave's investing Endorsed Local Providers (ELPs) are experts in your area who are committed to Dave's investing philosophy. Your ELP will answer your questions and make sure you never invest in anything you don't understand. Contact your ELP today!
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