Zach Sprung is a 17 year old who started planning for retirement at 14: “I’m kind of sitting back and letting the compound interest do the work for me." https://t.co/vEtg1EG8Ed
— Money (@Money) January 10, 2021
References:
Zach Sprung is a 17 year old who started planning for retirement at 14: “I’m kind of sitting back and letting the compound interest do the work for me." https://t.co/vEtg1EG8Ed
— Money (@Money) January 10, 2021
References:
“Get paid to wait” Kevin O’Leary
Noted Shark Tank investor, Kevin O’Leary aka “Mr. Wonderful”, has one simple rule when it comes to investing in a stock. If it doesn’t pay a dividend, he does not consider the stock. His investment mantra is “get paid to wait”.
“My whole investment strategy is built around cash flow”, O’Leary said. “I have a little Charlie Munger on my shoulder every day when I look at a deal, and he’s just saying two words: ‘cash flow, cash flow.'”
KEVIN O’LEARY Only Buy Stocks that pay DIVIDENDS & other Investing Tips https://t.co/9BYUjZF9Kl pic.twitter.com/P30IMHdZzu
— Money Maker Masters (@MoneyMasters01) December 25, 2016
Know your cash flow.
How much do you make after taxes? How much do you spend. Investors in retirement must figure out how to generate cash flow without a job from multiple income streams to meet essential living expenses and spending while also making sure they don’t outlive their income stream.
Receiving regular dividends, or “getting paid to wait” reduces an investor’s dependence on the market’s volatility and the roller coaster like price swings by stocks to make ends meet.
Essentially, dividends could become investors “cash flow” in retirement. Naturally, then, the best retirement stocks to buy in 2021 (or any other year) to accomplish those objectives are ones that pay dividends.
Regular dividends lessen an investor’s dependence on the market’s fickle price swings because it reduces or eliminates the need to sell shares to generate income. Regardless of whether the market rises or falls in 2021, a portfolio of high-quality companies can provide you with predictable, growing dividend income.
And in today’s low-interest-rate environment, dividend stocks can generate much higher income than many fixed-income instruments. Better still, many dividend-paying stocks grow their payouts, which preserves those dividends’ purchasing power. And dividend stocks, like other equities, also provide meaningful long-term price appreciation potential.

Whether or not the market rises or falls, a portfolio of quality businesses delivering predictable, growing dividend income is always preferred.
Dividend stocks, like other equities, can provide long-term price appreciation. Dividends are the periodic payouts investors can earn by investing. And because many companies pay a dividend — more than 80% of the S&P 500 stocks currently pay dividends, according to data from FactSet — investors can actually earn money even when the market is down.
Research firm Simply Safe Dividends published an in-depth guide about living on dividends in retirement here. However, a key component to this strategy is finding the best retirement stocks that can deliver safe dividends and grow in value over time.
What are Dividend Stocks
When investors buy stocks, they can make money two different ways. The first is by selling their shares for a price that’s higher than their original cost. The second is by collecting dividends. Dividend stocks are companies that pay shareholders a portion of earnings, as dividend, on a regular basis. Not all stocks pay dividends, but those that do offer shareholders a steady stream of income.
These payments are funded by profits and cash flow that a company generates but doesn’t need to retain to reinvest in the business. Shareholders can receive dividends as cash or additional shares of stock. As an investment category, dividend stocks also have an impressive track record of helping people build wealth over the long term.
To live on dividends in retirement, a key component to this strategy is finding the best retirement stocks that can deliver safe dividends and grow in value over time. Look for companies with a history of paying and increasing dividends, as well as sufficient earnings and cash flow from current operations.
Dividend Aristocrats
Dividend Aristocrats are a select group of S&P 500 Index stocks with a history of 25+ years of consecutive dividend increases. These businesses have both the desire and ability to pay shareholders rising dividends year-after-year. They are considered the ‘best of the best’ dividend growth stocks.
The Dividend Aristocrats have a long history of outperforming the market. The requirements to be a Dividend Aristocrat are that they’re in the S&P 500, have 25+ consecutive years of dividend increase, and must meet certain minimum market cap and liquidity requirements.
A great list of dividend stocks to consider if you are unsure where to start.https://t.co/XmmnjbE0Fd
— Mary | Business, Trading and Money (@my777) December 30, 2020
Dividend Yield
Dividend yield refers to a stock’s annual dividend payments to shareholders expressed as a percentage of the stock’s current market price. A stock’s dividend yield can and frequently does change over time, either in response to market fluctuations or as a result of dividend increases or decreases by the issuing company. And, it’s important to keep in mind that a high dividend yield alone doesn’t make a stock a great investment.
Dividend amounts and yield might seem small in mid-2019. The average dividend payment for U.S. stocks was 1.87% of your investment, according to Siblis Research. Regardless the size of the ratio, they can drastically impact an investor’s long-term investment performance and retirement income.
GE’s Dividend Story
General Electric (GE) has been one of America’s most widely held stocks, and countless retirees relied on the dividend payments. But, the company was under enormous balance sheet and cash flow pressure, and it became necessary to cut the dividend in half. By cutting, GE saved significant cash flow making it one of the largest dividend cuts in the history of the S&P 500 and the biggest for GE since 2009, according to S&P Dow Jones Indices.
But dividend cuts had been rare at the time since many companies were increasing them because the U.S. economy was healthy and the stock market was booming. GE’s dividend had been reliably paid for multiple decades.
Prior to GE Board’s decision to cut its dividend, GE was having problems and could not earn enough money to cover its dividend payments. Free cash flow, which measures how much cash is being generated after investing in the business, had deteriorated for six straight years.
Dividends: Cash Flow is King during Retirement
The distinction between income and cash flow is important during retirement. Generating income in retirement is focused on finding investments that pay a high yield, which necessarily means taking on more risk. Focusing instead on cash flow allows investors to take a broader perspective, assessing various aspects of their finances to determine how to creatively produce the money required for expenses. Cash flow strategies may allow retirees to reach their financial goals while not necessarily taking on a higher level of risk.
A primary financial goal in retirement is to guarantee a minimum daily standard of living so you don’t outlive your nest egg and can sleep well at night. Some folks are able to meet that minimum income amount they need through some combination of pension income, Social Security payments, and guaranteed interest from certificates of deposit.
“I have found that retirement is all about cash flow, not net worth, especially after the real estate crash. I have met people who have a net worth of $2 million, which looks great on paper, but when it comes to retirement income, they are just barely squeaking by on their Social Security and a small pension. It’s great that you are worth $2 million, but ultimately, it’s your cash flow that will determine your quality of life in retirement, not your net worth.” Jason R. Parker, Sound Retirement Planning: A Retirement Plan Designed to Achieve Clarity, Confidence & Freedom
When picking dividend stocks, chasing yield can cause issues where the price has declined, which may be an opportunity for capital appreciation, but may create greater risk for income seekers since the stock may be cheap for a legitimate idiosyncratic reason.
It’s important for investors to find a company they feel comfortable with, and whose product line they understand. Next, they can look at the company’s ability to generate sufficient earnings and cash flow to pay their annual dividends, operate their business, and have enough left over to grow, remembering that not all quarters must indicate growth.
Recently retired, or getting ready to leave the workforce? This short video series will help you understand the process of generating cash flow in retirement: https://t.co/IiGiUkdAuE pic.twitter.com/ogLWLMvcVn
— Fidelity Investments (@Fidelity) December 6, 2020
An investor’s particular situation must be considered such as their required income needs during retirement, weighed against their desire for capital growth— typically, lower-growth segments, such as utilities, pay more yield. Investors who allocate upwards of 80-100% of their portfolio to dividend-paying stocks to generate more income and achieve stronger long-term capital appreciation potential and income growth, are incurring greater risks.
Additionally, their specific risk/reward trade-off (and there is risk in all stocks), keeping in mind their ability to ride out a downturn without having to sell the stock on the way down.
References:
Don’t try to overhaul your life overnight. Instead, focus on making one small change at a time. Over time, those small changes will add up to big transformation. Don’t give up!”
A reporter once asked Albert Einstein what’s man’s greatest invention was, and the scientist, after a long pause, simply replied: “Compound interest.”
Compounding—the idea of something gaining value exponentially into the future through better decisions made in the present—is one of the greatest lessons any human being can ever learn.
In Becoming Ageless, “it is never too late to reverse how you look and feel, and to develop the mindset of how you do it. Day in and day out, if you want to live longer and live better, you need a clear and basic understanding that the outcome of your journey is the sum of its steps.”
There are no guarantees with your physical or emotional health, just as there are no guarantees with your wealth. But, you can stack the odds in your favor by making sacrifices today that are worth the gains in the long term.
And with the principles explained in Becoming Ageless, you’ll be living longer—and with greater clarity of thought, mobility, and freedom from pain. Ultimately, you can take the tactical insights about daily living and the strategic insight into the larger quest to live longer and better. After all, you can be living proof that if you’re willing to consistently and incrementally implement small changes—while keeping your eye on the larger goal at all times—you’ll boost your chances of living longer and living happier than you ever imagined.
You can have the mind, body, and spirit of someone half your age, and add more years to your life. Or, you can have people stare in disbelief when they discover how old you really are. You can become…ageless? You can. It’s possible.
Becoming Ageless: The Four Secrets to Looking and Feeling Younger Than Ever is the result of years of research into the science of longevity. It is about looking and feeling eternal. It has worked, and it will work for you. On this effective plan, you’ll:
Becoming Ageless: The Four Secrets to Looking and Feeling Younger Than Ever, explains exactly what it takes to be fit and healthy at any age with all the research to support it.
The three most interesting things Zelnick learned about keeping the mind and body young.
1. Try the less-is-more approach.
When it comes to staying youthful and increasing longevity, deliberately plodding along can actually be more effective than going all out. A 2015 study looked at more than 1,000 runners and found that those who jogged slowly had lower mortality rates than those who ran faster. “I was a terrible runner, so a few years ago I worked with a coach,” says Zelnick. Even though they suggested brisk, one-hour sessions, Zelnick insisted on 45-minute jogs. “That was just at the brink of what I could live with before saying, ‘I hate this so much, I’ll never do it again,’” he says. “Taking it slow and steady was my strategy.”
2. Stay adventurous.
Research from the University of Texas at Dallas found that trying new, cognitively demanding activities improves memory function in older adulthood. “It’s just not true that we lose the ability to learn or improve our performance after the age of 25,” says Zelnick. “I picked up skiing in my 30s, cycling in my 40s, boxing in my 50s, and I’m picking up gymnastics and squash now.” Not only is it possible to learn new skills as you age, but doing so can keep your body and brain young.
3. Accept the learning process.
Study upon study shows the importance of grit in predicting success, and Zelnick believes it also keeps you young. You probably won’t pull off a world-class performance the first, even the 10th time you try something. “Don’t be afraid of failure or slow progress,” he says. “There are days when I play squash and I do really badly. And yes, I might get frustrated with myself but then I realize, you know what? I showed up, I did the best I could, I’ll do better the next time—or I won’t. But I’m still going to keep going.”
With Becoming Ageless, you’ll feel fitter, sharper, and more energized than ever before—with the body of someone half your age! Boost your metabolism and enjoy all-day energy. Feel younger for life. All you have to do is follow the four secrets in the book.
– Ageless Secret #1 You’ll Indulge in Delicious Foods
It’s true: You can eat to be younger. Most people associate eating for health or weight loss with a “diet”—It’s important to break that association. Diets fail. Instead, focus on “Forever Fuel.” It doesn’t mean you can’t eat your favorite foods; you’re just getting the best versions of them. On the Becoming Ageless plan, enjoy the following and lose 20+ pounds:
The book is packed with a ton of easy-to-make recipes that will help you get your best body ever. It’s true—even with a busy schedule, you can cook, because they’re that simple. And if you cook just three meals a week, you’ll live a decade longer, studies show.
– Ageless Secret #2: You’ll Unlock Your Inner Strength
Fitness is the foundation for so much success in many individuals lives—it improved their moods, shrunk their belly, got them out with colleagues (which led to promotions) and you don’t have to run an ultra-marathon or climb Mt. Everest. Just commit and be consistent. Get moving a little every day.
Work out every morning and some evenings. Some moves take just minutes to do. Here’s a few ways to do it right:
– Ageless Secret #3: You’ll Bulletproof Your Body
You can’t feel younger if you’re sick all the time. You want to turn your body into a disease-fighting machine. That’s why you should include:
– Ageless Secret #4: You’ll Discover a Deeper Connection
People who focus solely on the body and not the mind are shortchanging themselves. For lasting success, it’s essential to construct a support system that will hold you accountable—and provide incentives for you to succeed. Consider texting a friend after every workout, and revel in the virtual high-five; better yet, join a workout class. You’ll strengthen bonds with friends and loved ones and elevate your mood and productivity.
It’s a benefit in embracing my spiritual side. For quiet reflection, personally integrate morning prayer. It’s life-changing, and feeds into personal success on every level. To help you focus, meditate, do yoga, and find a community that supports your new lifestyle.
By following the pillars in Becoming Ageless, you’ll be happier and healthier; stave off disease; enhance your spiritual connections; and lose fat from where it matters most. That’s something you want at any age. It works.
Start by asking yourself an important question: “What do I want?” That answer will drive every decision you make. It will also make the how easier to pinpoint and, eventually, accomplish. Here are a few answers to that question: You May want to . . .
You don’t want is to be limited or defined by your age. Yet sometimes, we forget that, while there’s no stopping the passage of time, we can control how well we age. Because the notion that you’ll get too old to run marathons, too weak for century rides, too fragile to ski or snowboard, or too fatigued to keep up with your grandchildren at a park is just plain wrong.
It doesn’t matter if you’re a millennial or a centenarian: Right now, you have all the resources you need to make changes to obtain or reclaim the life you want. That’s if you know what you want. So think about what you want. Be honest and don’t edit your thoughts. Contemplate it for a week if you need to. Then write down five to 10 goals. Write them right now.
Strauss Zelnick is founder of the private equity firm Zelnick Media Capital and president and CEO of Take-Two Interactive, the company behind blockbuster video games such as Grand Theft Auto and NBA2K.
“Live your truth!”
“Success is peace of mind which is a direct result of self-satisfaction in knowing you did your best to become the best you are capable of becoming.” John Wooden
During Coach John Robert Wooden’s career at UCLA overseeing the men’s basketball program, he led the basketball team to an 88-game winning streak and 10 NCAA championship titles. But Coach Wooden was equally revered for being a mentor and lifelong teacher.
John Wooden is a legend in basketball, but more important, he is a legend in serving mankind. He was a master teacher and mentor to many inside and outside the sport of men’s college basketball. His Seven Point Creed was a timeless gift that his father gave him as a teenager entitled “Seven Things to Do” – which Coach later coined Seven Point Creed. The Creed contained the following advice:
Coach Wooden also always carried his own creed on a card that read, ‘The Four Things a Man Must Learn to Do”, which are:
Real success
Real success, according to Coach Wooden, is defined not by wins and losses, but by the daily development of yourself and giving your best in all you do. Simple as the principles might seem, truly delivering on them requires effort most won’t or aren’t willing to give.
Pyramid of Success
The Pyramid of Success consists of philosophical building blocks for succeeding at basketball and at life.

At the top of the Pyramid of Success was “Competitive Greatness” which Wooden defined as “Perform at your best when your best is required. Your best is required each day.” By pushing yourself to achieve competitive greatness—the apex of Wooden’s Pyramid of Success—you’ll not only achieve all the rewards in your own life, but also have a favorable effect on your family and everyone you come in contact with.

Wooden believed that his greatest responsibility as a coach and teacher was to turn his players into mature and honorable young men, who were well prepared for life beyond basketball, and that his student-athletes’ success should not be measured by grades and wins alone, but also by heart and character.
“Your reputation is what you’re perceived to be, Your character is what you really are.” John Wooden
Among Wooden’s maxims:
Key takeaways
Remember that success, according to Coach Wooden, is not defined by victories. Instead, he defined success as “peace of mind, which is a direct result of self-satisfaction in knowing you made the effort to become the best of which you are capable.”
Don’t be afraid to fail because if you are afraid to fail, you will never do the things you are capable of doing. If you have thoroughly prepared and are ready to give it all you’ve got, there is no shame if you fail-nothing to fear in failure. But fear of failure is what often prevents one from taking action.
Be confident but not arrogant since arrogance, or elitism, is the feeling of superiority that fosters the assumption that past success will be repeated without the same hard effort that brought it about in the first place. Thus, “I have never gone into a game assuming victory”, Coach Wooden said. “All opponents have been respected, none feared. I taught those under my supervision to do the same. This reflects confidence, not arrogance. Arrogance will bring you down by your own hands.”
Pay attention to the little things. As a coach, Wooden was known for teaching his players how to put on their socks and shoes on the first day of practice. The lesson: Every detail matters.
References:
Investing with a Purpose – “Start with the Why” regarding saving, investing and accumulating wealth. It’s about your values and life goals. It’s about keeping your eyes on the prize and on the why you’re saving, investing and accumulating wealth.
There is an underlying reason why you invest your hard-earned money and it’s not just to earn more money. While that may be the ultimate outcome, the “Why” or “Purpose” of investing is something completely different. Simply put, you invest to achieve your financial goals in life. These goals are different for every person. Maybe it’s retirement, a child’s college education, buying a beach house, or planning for the next generation. We all have our own goals, whatever they may be. It’s your mission to plan out a clear path to achieve those goals. This is what is considered Investing with Purpose.

Purpose-driven investing thrives by instilling a sense of purpose into any investment. People seek to achieve real-life objectives such as saving for your kid’s college or your retirement.
A firm purpose behind your saving for the future, investing for the long term and accumulating wealth will ensure that you are making the right money management decisions today to achieve long term financial success. Your risk will be optimized when your purpose for saving, investing and accumulating wealth matches your goals and timeline.
CNBC, Kevin O'Leary, and other sources note that paying off your debt is key to retirement. However, with interest rates at historic lows, you may want to take on new debt (like a mortgage) that you will pay off before you hit your retirement age. #protip pic.twitter.com/pXHijvrrwf
— Swartzbaugh-Farber (@SFAIbenefits) January 13, 2021
People Invest to Achieve Personal Financial Goals
“An investor without investment goals, objectives and a plan is like a traveler without a destination.” Anonymous
Understanding your values and what you want to accomplish in life is essential to “Purpose Driven” saving, Investing and accumulating wealth. Saving, investing and accumulating wealth are deeply personal undertakings, which is why you must always start with a discussion about what’s really important to you. This helps us shape your saving, investing and accumulating wealth strategy around three key dimensions of your financial life: liquidity, longevity and legacy.
When people are asked why they invest, their answers typically are focused on family and future goals in life—buying a house, saving for emergencies, retirement, taking care of loved ones. Those are the big picture answers. But as in life, it’s often as much about the journey as the destination. Investors have specific expectations about the investment experience, as well as the outcomes.
For example, some investors want long-term growth to build their retirement nest egg, but they don’t want to feel the volatility that can occur in the broader stock market. Others want regular income distributions after they reach retirement. Still others want investments that can help them manage through changes in the economic environment, or more personal economic challenges.
Create the future you want for yourself and your loved ones. New to investing or an experienced trader. To be great and successful at any endeavor, you’ve got to sacrifice and put in the work, because anything easy is just average. To become great you have to make big sacrifices and work really hard — much above average.
Wise spending is a subset of wise investing. And, it’s never too late to start investing.
When you invest in assets over the long term, you are buying a day in the present that you don’t have to work several days in the future.
I like this quote since it succinctly defines one of the primary reason for investing … “putting away money today so sometime in the future, you do not have to work to live”. And the seeds you sow today, will reap the financial harvest to live a life in retirement with dignity and financial security.
Your actions dictate the consequences. Reaps what they sow, they suffer or benefit as a result of their own actions.
Investments are the tools we use to make your financial plan successful. With your plan as the guide, your stock portfolio should be designed around your personal situation, needs, and goals.
#CNBC predicted 61% of Americans' emergency funds ran out 📉 at the end of 2020 because of the #coronavirus pandemic. https://t.co/YZ1AiIFrve pic.twitter.com/0CQ5rzq723
— Watchdog Ventura (@WatchdogVentura) January 13, 2021
S&P 500 rolling returns have been almost always positive over the long-term.
One of the best ways to invest is over the long term and it’s more important than ever to focus on long-term investing. It’s long-term investing strategy where investors can accumulate wealth. By investing long term, you can meet your financial goals and increase your financial security.
94% of 10-year rolling returns have been positive since 2000.
Rolling returns are measured over consecutive periods starting with the earliest period and finishing with the most recent. For example, the period of measure for a 10-year rolling return for an investment as of the end of February, would be 03/01/2010 through 02/29/2020.


Source: Bloomberg Finance L.P. as of 02/28/2020. Past performance does not guarantee future results. The referenced index is shown for informational purposes only and is not meant to represent the Fund. Investors cannot directly invest in an index.
Investing and learning to think long-term
While many investors of all ages think of investing as trying to time the market to make a short-term return on their investment, investing for the long-term investing is one of the best ways and a proven strategy for investor to accumulate wealth over time and achieve financial security. But the first step is learning to think long term, and avoiding obsessively following the markets daily ups and downs.
Do you hold long term investments in your portfolio? Over most 20 year periods, the S&P 500 has had positive returns for investors. Long term holding limits emotional trading and almost always outperforms the market compared to trying to time the market. pic.twitter.com/0E950P80n3
— OptionsSwing (@OptionsSwing) January 7, 2021
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“It’s natural and human to feel like you need to take action and “do” something–anything–to stay in control and protect your financial interests.”
Scientific studies have shown that the human brain really likes to feel in control. We’re built to take action to protect ourselves and the people we love when signs point to trouble.
That’s why when markets become volatile, it’s natural and human to feel like you need to take action and “do” something–anything–to stay in control and protect your financial interests. You might feel anxious or worried. Don’t worry; you’re not alone in feeling that way.

Taking action during uncertain times may help you feel more confident about the way things will turn out. That said, if you feel like you need to make changes to your portfolio, it’s important to make sure that the action you take won’t put your long-term financial goals in jeopardy.
Here are some things you can do to feel in control without losing sight of the bigger picture:
Run some numbers
If you feel you have to do something, consider starting with your calculator. Numbers can give you a rational way of framing things that can settle some of those anxious feelings. For example, you can analyze how market conditions have affected your portfolio and compare it with the expectations you had based on your risk tolerance. Or compare your current asset mix with your target and rebalance if it differs by 5 percentage points or more.
Speak the language of action
Describing your strategy as “staying the course” or “doing nothing” may make you feel you’re not doing enough. Instead, describe what you’re doing as fighting the impulse to get out of the market or giving your portfolio an opportunity to rebound. You’re trusting your mix of assets to get you through market ups and downs, and that takes mental strength. Give yourself credit where it’s due.
Talk it over
Consider sharing your plan of action with others. Take a look at the Vanguard Blog for inspiration. When other people show support for what you’re doing and chime in that they’re doing it too, it can make you feel good about your choices. Helping others when they have questions can also go a long way toward building your confidence.
Take comfort in history
So far, every market downturn in history has been followed by a rebound. We don’t know when it will happen or how big it will be, but there’s good reason to believe that better times are ahead.
Think about what you can control
If you’re saving for retirement, you may be able to control how much you save or how long you can save (if you have a retirement date in mind). If you’re retired, you may be able to adjust the percentage of your portfolio you withdraw during a market downturn.
Your spending habits are within your control too. Of course, it’s probably not realistic to expect that you’ll start clipping coupons, switch to generic brands, and skip your afternoon coffee run all at once. Try cutting down your spending in just one area at a time to see what works best for your life.
We recognize that this is your portfolio, and you control your asset mix. We don’t recommend changing your asset mix in response to market movement, but if you’re determined to make a change to your portfolio, make it a small one. Some examples of small things you can do: Direct one of your stock funds’ investment earnings to a bond fund, or change the asset mix of a single account rather than your entire portfolio.
Lean in
Lean on personal financial advisors to provide you with the leadership you need to make it through uncertain times. Trusting a financial expert to bring order to a situation that feels out of control can help you ease anxious feelings.
Introducing our new three-part podcast series ‘Power Move: Invest in your future’ with @FutureWomen, an exciting step in our commitment to empower more women to invest and take control of their financial futures. #PowerMoveInvest https://t.co/AOuHm5l0lV pic.twitter.com/Hq26TPaWJ8
— Vanguard Australia (@vanguard_au) November 3, 2020
Note: All investing is subject to risk, including possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
Emergencies—from a vehicle breakdown to a layoff—are a fact of life. When you’re faced with life’s unexpected events, you can be ready.
When things are going well financially and monthly expenses are being paid, emergency savings can seem unimportant. Yet, emergencies are unpredictable and can quickly derail your financial stability. And, a recent FINRA Study finds that 56% of people in the United States don’t have a rainy day fund that would cover 3 months of expenses.(1)
A sudden illness or accident, unexpected job loss, or even a surprise home or car repair can devastate your family’s day-to-day cash flow if you aren’t prepared. While emergencies can’t always be avoided, having an emergency fund can take some of the financial sting out of dealing with these unexpected events.
Being prepared for the unexpected – ensuring you’ve done what you can to protect yourself and the ones you love – can reduce stress and provide a good feeling. Many people at some time in life find they need to dip into savings during a rough patch, so make an effort to open an emergency savings account and try to make deposits on a regular basis.

An emergency fund are savings used to cover or offset the expense of an unforeseen situation. It shouldn’t be considered a nest egg or calculated as part of a long-term savings plan for college tuition, a new car, or a vacation. Instead, this fund serves as a safety net, only to be tapped when financial crises occur.
It is a good idea to work toward an emergency fund equal to 3 to 6 months of living expenses. But anything you can put away is better than being unprepared. Saving up emergency cash can be easier if your financial institution has an automatic payroll savings plan. These plans automatically transfer a designated amount of your salary each pay period – before you see your paycheck – directly into your account.
An emergency fund is useful for unexpected expenses, and to maintain personal financial liquidity and cash flow.
Reasons why emergency savings are important:
Thus, an emergency savings is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly. Some of the top emergencies people face are:
Emergency funds create a financial buffer that can keep you afloat in a time of financial need without having to rely on credit cards or take out high-interest personal loans. It can be especially important to have an emergency fund if you have debt, because it can help you avoid borrowing more.
The right amount for you depends on your unique financial circumstances. Most experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months’ worth of living expenses in case of an unexpected financial emergency. This account should be relatively liquid.
For your emergency or rainy day fund, you’ll want to choose savings or investments accounts that are:
If you lose your job, for instance, you could use the money to pay for necessities while you find a new one, or the funds could supplement your unemployment benefits.
Start small, but start.
Saving even small amounts such as $500 can get you out of many financial scrapes. Put something away now, and build your fund over time.
An emergency can strike at any time, having quick access is crucial. But the account should be separate from a bank account you use daily, so you’re not tempted to dip into your reserves.
Building an emergency fundCalculate the total that you want to save. To figure out how to add up your expenses for six months.
An emergency fund is for emergencies only. Usually it’s something that affects your health, your home or your ability to earn money.
What’s not an emergency?
When saving, draw a line between emergencies expenses and everything else. In fact, once you’ve hit a reasonable threshold of emergency savings, it’s a good idea to open multiple savings account for irregular but inevitable items such as car maintenance, vacations and clothing.
Everyone needs to save for the unexpected. Having something in reserve can mean the difference between weathering a short-term financial storm or going deep into debt. Emergency savings can help you handle unexpected events. With money set aside for emergencies like unexpected car repairs or sudden job loss, you can better take care of yourself and your family financially.
Building an emergency fund
Calculate the total that you want to save. To figure out how to add up your expenses for six months.
An emergency fund is for emergencies only. Usually it’s something that affects your health, your home or your ability to earn money.
What’s not an emergency?
When saving, draw a line between emergencies expenses and everything else. In fact, once you’ve hit a reasonable threshold of emergency savings, it’s a good idea to open multiple savings account for irregular but inevitable items such as car maintenance, vacations and clothing.
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A diminished or loss of the sense of smell, called anosmia, has emerged as one of the telltale symptoms of Covid-19, the illness caused by the coronavirus. Of all the early symptoms, this may be the clearest signal that you’re dealing with COVID and not something else, given how rarely this occurs in other illnesses. It is the first symptom for some patients, and sometimes the only one, according to the NY Times. Often accompanied by an inability to taste, anosmia occurs abruptly and dramatically in these patients, almost as if a switch had been flipped.
Loss of smell and taste has become a calling card symptom of Covid-19. While most patients regain these senses over time, a small but growing number of patients have yet to, sparking fears that the loss could be permanent. https://t.co/GimBPkiMSI
— The New York Times (@nytimes) January 2, 2021
“Findings show that loss of smell and taste are highly reliable indicators that someone is likely to have COVID-19 and if we are to reduce the spread of this pandemic, it should now be considered by governments globally as a criterion for self-isolation, testing, and contact tracing,” Rachel Batterham, MD, study leader from University College London and University College London Hospitals, said in a statement. “People who notice a loss in their ability to smell every day household odors such as garlic, coffee, and perfumes should self-isolate and seek PCR testing.”

A recent study conducted by University College London, who studied 590 patients in the U.K. who reported suddenly losing either their sense of smell or taste; 567 of the patients were then given coronavirus tests. Their results, which were published in the journal PLoS Medicine on Oct. 1, showed that 80.4 percent of subjects reporting anosmia—aka, the loss of smell—and 77.7 percent of those who lost their sense of taste tested positive.
“There are altogether different things going on when it comes to smell and taste loss for COVID-19 patients, compared to those with a bad cold,” Carl Philpott, PhD, of the University of East Anglia’s Norwich Medical School, said in a statement on a related study. “It means that smell and taste tests could be used to discriminate between COVID-19 patients and people with a regular cold or flu.”
Scientists know little about how the virus causes persistent anosmia or how to cure it. Some experts fear that the pandemic may leave huge numbers of people with a permanent loss of smell and taste. The prospect has set off an urgent scramble among researchers to learn more about why patients are losing these senses, and how to help them.
Researchers in London hope to better understand the association between anosmia and COVID-19. Does the sudden loss of smell happen before the onset of other symptoms? https://t.co/59r345vTUR pic.twitter.com/bRcIeC5yPT
— Lawson Research (@lawsonresearch) April 27, 2020
If you find that you’ve lost your sense of smell or taste, it’s definitely time to isolate and get a COVID test. “Loss of smell and taste is a very common COVID-19 symptom and in fact, occurs more often than fever and lasts longer—five days on average compared to only two for fever,” explained Tim Spector, MS, professor of Genetic Epidemiology at King’s College London.
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“The first rule of investment is ‘buy low and sell high’, but many people fear to buy low because of the fear of the stock dropping even lower. Then you may ask: ‘When is the time to buy low?’ The answer is: When there is maximum pessimism.” Sir John Templeton
Market volatility is a fundamental part of trading and investing. When market volatility strikes, it’s common for investors to succumb to temptation and follow the herd to panic sell stocks.

Financial Planning is About Long-Term Goals
“All financial success comes from acting on a plan. A lot of financial failures come from reacting to the market.” Nick Murray
Setting financial goals—and sticking with your plan—is key to potential long-term success. Rather than letting market volatility change your long-term financial plans, it is important to stay focused on your long term goals and disciplined in your investment philosophy.
“People thought that just because the vaccine started, we suddenly had this magic bullet,” @TDAmeritrade's @TDAJJKinahan says. “I do expect… more volatility in these first few months as the logistics around getting this to the average person becomes a bit more of a challenge.” pic.twitter.com/Hcg24AwyFJ
— Yahoo Finance (@YahooFinance) January 4, 2021
“Your financial goals aren’t set in stone,” according to Mark Gleason, senior manager of investment products and guidance at TD Ameritrade. “Circumstances change, and what you want might change. When that happens, it does make sense to change your approach.”
“Everyone has the brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and mutual funds altogether.” Peter Lynch
Just remember, the time to make adjustments to your long term financial plan are due to changes in life circumstances and should not be in response to market volatility. Here are four reasons to adjust your financial plan:
Stay disciplined when investing.
Market volatility can cause discomfort, but it is important to realize that market volatility is short term and should not impact your long term goals and financial planning. You’ve set long-term financial goals designed to help you reach certain life milestones—and you don’t want to undo all your progress just to feel better during a market downturn.
Highlight: "If there was a drastic difference between what the market was expecting and the numbers we were seeing in general, I think you'd have a lot more overall volatility and probably a little bit of pullback," TD Ameritrade's @ShawnCruz_TDA says. pic.twitter.com/w8z2qf3i4k
— Yahoo Finance (@YahooFinance) October 21, 2020
“Why is staying the course so important? As an extreme example, consider the investor who lost faith in the markets and cashed out on March 23, the low point in the U.S. stock market. Stocks subsequently rebounded more than 39% over the next three months; the unfortunate individual who moved to a money market fund earned a meager 0.14%. Vanguard’s analysis found that about 85% of investors who fled to cash would have been better off if they had just held their own portfolio.” (Source: Vanguard, https://investornews.vanguard/a-snapshot-of-investor-behavior-during-a-downturn/)
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