David C. Branch's Blog

Mistakes to Avoid When Saving for Retirement

Retirement is supposed to be a great time in your life where you can finally relax after years of hard work. Unfortunately, far too many people are unable to maximize the benefits of retirement due to a lack of savings. It is hard to find much relaxation time when you are struggling to survive financially every month. These are the four biggest mistakes to avoid when saving for retirement.

No Financial Plan

The only way you can truly know if you have saved enough for retirement is by creating a financial plan. This plan must include all of your expected expenses and income until you reach the end of your expected lifespan. Living in a home you have owned for decades is far cheaper than moving to a retirement community in an exotic location. This plan will also let you determine the type of lifestyle you can have during retirement.

Failing to Save

The best way to prepare for retirement is by saving as much as possible right now. This savings strategy will make you a lot of money in the future thanks to compound interest. The longer your money sits in a retirement savings account, the more it will accumulate in interest. It is best to only undertake big expenses when they are absolutely necessary. You will thank yourself when you get older.

Spending Too Much

You are going to have a hard time saving enough money for retirement if you are unable to control your spending. This is especially true if you cash out part of your retirement plan early. In addition to losing the future interest earnings, you will also have to pay taxes and huge early withdrawal fees on this money. Get your spending habits under control to ensure you do not have to keep working until death.

Bad Investment Strategy

There is nothing worse than losing a large portion of your retirement savings because of bad investments. While it may be tempting to take risks with your investments, this will likely come back to haunt you in the future. It is best to stick to safe investments like mutual funds and proven stocks. This will allow you to gradually build your savings over the years until you hit retirement age.

This article was originally published at DavidCBranch.com.

How to Cut Costs and Save During a Pandemic

The current global pandemic has rapidly transformed life as we know it. Both individuals and businesses have had to adjust nearly overnight. Many people are trying to figure out how to save money during these challenging times. One of the most important things you can do is cut back on costs. Personal finance advisor and entrepreneur Ramit Sethi compares cutting costs to flossing. He says “we all know we should do it, but most of us never get around to it.” A failure to cut costs often leads to a sense of guilt, but many people also find themselves crippled when it comes to making a decision on what to cut back on.

Focus on Your Most Important Needs

If deciding what to keep and what to cut out is overwhelming, try to think about your top three expanses. Choose to focus on those. Some, like rent and electric bills, are necessary. You may be able to negotiate them to a lower number, depending on your situation. Other costs, such as buying new clothing and eating out, are easy to cut back or eliminate completely. During the pandemic, most restaurants and bars are closed, which makes taking out one large expense easy.

Create Smaller Goals

Many people set high goals for themselves, and then become completely discouraged when they don’t accomplish them immediately. If you have a specific financial goal that you want to accomplish, it’s often enough to get most of the way there, feel good with your success, and move on. Don’t get stuck in a cycle of not meeting your goal, beating yourself up, and becoming too disheartened to create new goals and keep improving.

Automate Your Savings and Bills

One of the best financial choices you can make is to have money automatically deducted from your paycheck and put into a savings account. This way you won’t be tempted to spend it. If you don’t use automation, you’ll be relying on yourself to remember to put the money away each month. You may find yourself spending it on purchases you don’t necessarily need, instead.

You can also automate many of your bills too, from car insurance to utilities. Some companies offer slight discounts if you sign up for automatic payments.

Taking these steps will help you save money during a pandemic and set you up for future financial success.

This article was originally published at DavidCBranch.com.

A Glossary of Investment Terms for Beginners

Understanding how the investment world works is difficult without an understanding of its terminology. A finance major might see investment terms as basic knowledge, but financial jargon is confusing to everyone when investment decisions are made in fast-moving markets. Here are some industry terms to guide your investment strategies with:

The Ask and Bid Prices

The “ask” price is a price that an asset sells for while the “bid” is the price at which it is bought at.

Buying and selling are identical to a degree, for you can only sell if someone buys, yet the difference between the ask and bid prices establish the cost of your transaction via what’s called “a spread.” Spreads, which show the difference in ask and bid prices, are what pay your broker. Many brokers earn commissions by selling at prices higher than what the market quotes—while buying at prices below market levels.

The Broker and Your Blue-Chip Stocks

A true “broker” is a financial firm that takes your investment order and fills it on your behalf.

Brokering is complicated, for it requires financial agencies to often use their own money to complete your trade through. Brokers encourage their clients to invest into the most profitable, liquid and dividend consistent “blue-chip stocks.” Blue-chip stocks are “the cream of the crop” in equity investing.

Bullish and Bearish Markets

A “bear,” as he relates to the investment world, is someone who takes a selling position for an asset or its market.

“Bulls” buy equity up—in hopes that prices are set to rise even higher. A market that trends downward over a period of one or more months is bearish. A market that consistently trends upward with higher prices is a bullish one. Investors track bearish and bullish sentiment as a way of refining their investment decisions.

Routine-Dividend Payouts

A stock company with dividends gives its shareholders scheduled payments apart from their stock ownership. Dividends are paid out via a yield percentage that tells us how much a dividend is worth based on its stock’s-full value. A 100-dollar stock, for example, with a yield of 7% will give a shareholder $7-per share either quarterly or annually.

This article was originally published at DavidCBranch.com.

Finance Advice for Small Business Owners

Being an entrepreneur or small business owner comes with a large variety of challenges. One of these is managing your personal finances. Small business owners are some of the most talented people on the planet, but if you are a small business owner who struggles to manage their personal finances, you’re not alone! You may spend too much, take too many risks, or neglect saving for retirement. It’s possible to change these financial habits, however. Improving your financial management will help you feel less stress and be able to better focus on your business. The following are a few tips that will help you better manage your money as a small business owner.

Start an Emergency Fund

You should always be prepared for unexpected challenges. There’s no way around it– small businesses are risky. One of the best ways to prepare is to have an emergency fund in place. Most financial planners suggest that you have three to six months’ of living expenses tucked away for emergencies. If you own a business, however, you should consider having an even larger emergency fund. You never know what could happen. What if there are seasonal fluctuations? Or you lose your biggest client? Your personal emergency savings might not be able to last long. Creating an emergency fund will give you peace of mind and keep you secure during a sudden financial emergency.

Save for Retirement

Most small business owners invest the majority of their profits back into their business. You shouldn’t forget about yourself and your family’s future, though! You should start saving for retirement as soon as possible. Look into creating a SEP IRA or other retirement savings plan with tax advantages for your business, regardless of the number of employees.

Your business is your largest investment, and you depend on it for your income. That doesn’t mean you need to invest every dollar into your business. Instead, you should diversify your savings into a variety of investments.

Get Outside Help

You should speak with a financial advisor for more professional and specific advice about your finances. An outside individual will help point out your financial blind spots. Working with a professional also means that you’ll have one less thing on your plate so you’ll have more time to devote to running your business.

This article was originally published at DavidCBranch.com.

How to Get Your Finances in Shape

If you’re worried about money, you’re not alone. According to the Federal Reserve, nearly a third of Americans don’t have enough savings to cover an unexpected $400 expense, like a car or medical emergency. This is often very stressful! You never know when something will go wrong. The best way to prepare for an emergency is to get your finances in shape and add money to your emergency fund. If you’re not sure how to start, the following are a few excellent steps to set you on the right path.

Track Your Spending

First of all, find out where your money is going. Keep a list of all your expenses and any purchases you make, both necessary and unnecessary. It doesn’t matter how you keep track– some people prefer to use pen and paper, while others may prefer to use an app. Do all of this for a month. Then divide your expenses into categories, such as recurring expenses, rent and utilities, and entertainment.

Create a Budget

Once you’re determined where your money is going and have a better idea of what your expenses are, you’ll need to create (and stick to) a budget. Write down how much money you earn or obtain each month. Although it sounds simple, the key is to not spend more than you earn. Otherwise you will go into debt.

Put Away Money in an Emergency Account

When you create your budget, you should also decide how much money you want to save in an emergency account each month. Put the money directly into your emergency fund so you won’t be tempted to use it for unnecessary expenses.

The exact amount of money that should be in your emergency fund depends on your lifestyle, however experts recommend that you have enough to cover at least three months’ worth of living expenses at any point. If you have kids or someone in your family has health problems, consider keeping at least six months’ worth of money in the account.

If you’re struggling to save, start with a goal of $1,000, then move forward from there.

Keep Saving

As time goes on, don’t forget to replenish your emergency fund. Once you start the habit of saving, you can also start saving for other future purchases, perhaps a home or further education.

This article was originally published at DavidCBranch.com.

Keeping Your Finances Safe in the Digital Age

In the digital age it is easy for hackers to steal consumer information because there is so much lacking when it comes to cyber security. A lot of people ignore the warnings and forget to do the simple things that help them keep their finances safe. There are a plethora of things that can be done to keep finances secure in the digital age, and it all starts with awareness.

Phishing

One thing that consumers must be able to do is look at the sites that are designed for phishing and stay clear of the sites. The sites that are secure online are denoted with a padlock. People that click on these padlocks can view the site certificates and find out if they are connected to a secure connection.

This is very important when it comes to paying bills online. So many people find themselves at a place where they are acting because they did not take the time to actually pay attention to the website to see if it was a secure connection.

Block Pop-ups

Another thing that consumers need to be mindful of is their ability to acquire software that will block pop-ups. Some people have operating systems that have these pop-up blockers installed by default. The users just have to decide if they are going to turn these pop-up blockers on.

People that are going to various websites that may have pop-ups, and these pop-ups will lead them to other sites. It is a good idea to have software that prevents this type of web browser hacking.

Secure The Phone

There are a great number of people that no longer use regular computers. They are utilizing their phones to make all of their transactions. If this is the case people should be mindful of who has access to their phone. They should make sure that they lock their phone so that no one can access their apps and get into their credit card or shopping apps when they are not utilizing their phones.

Mindfulness

People have to practice mindfulness when it comes to making the right moves with online shopping and Internet Security. Most people find themselves getting hacked because they are not paying attention when they are online.

This article was originally published at DavidCBranch.com.

The Essential Parts of Powerboats

Maybe the thrill of boat racing intrigues you, and you want to hit the water yourself. Before you find your first boat, it’s a good idea to educate yourself on the equipment your powerboat will need. You won’t be able to win (or even race well, for that matter) unless you have a solid understanding of how all the parts of your boat work together to propel you across the water. The following is a brief overview of the main parts of racing boats.

The Hull

The hull’s design plays an important role in the speed and safety of your boat. Many fast boats utilize a style of hull called a Hydro. The Hydro is designed so that most of the hull lifts out of the water, skimming the water’s surface at very high speeds. Hydro hulls are have points, or sponsons, located at the very front of the boat. These contribute to the hydroplaning effect that gives the boat its signature speed.

Propellers

Your propellers are another key element of your boat. Without the right propeller, you’ll have a hard time reaching the finish line. Most of the top propellers are made of stainless steel and consist of three or four blades. The more blades you have, the more they will reduce the boat’s vibrations. If you have a boat engine with lower horsepower, than you’ll want a propeller with fewer blades. Your blades should be as thin as possible without cracking. Your blades will go through a lot between the boat’s horsepower and torque. Make sure that they are always in excellent shape.

Engine

Powerboats usually have one of three main engines:

Inboard engines are located inside the boat’s hull, unlike outboard motors, which are located on the back of the boat. Inboard engines come in a variety of types, from two stroke and stock eight-cylinder. Inboard motors can either be stock engines or modified four-cylinder engines.

Outboard engines are detachable engines found on the stern of the boat’s hull. These engines are self-contained units containing both an engine and a gearbox. Some outboard racers compete in more than one class, and competitors can detach and replace motors as necessary for the class.

Unlimited hydroplanes use a single Lycoming T-55 L-7 turbine engine. These engines extremely heavy-duty, as demonstrated by the fact that they power the military’s Chinook helicopters. Unlimited hydroplanes run on Jet-A fuel and have the potential for 3000 HP.

This article was originally published at DavidCBranch.net.

Top Boat Racing Resources

Boat racing is one of the world’s most exciting sports. The offshore racer has to not only fight against his competitors, but also match himself against the water. The water is not a friendly competitor, at 140 miles per hour, the surface is as hard as a brick. The world’s best racers make the competition look effortless, but in reality it involves quick decisions at breakneck speed, top-notch machinery, and nerves of steel. The sport is growing in popularity, but some people are still looking to know more. The following are some great resources for those who want to learn more about the incredible world of muscle boat racing.

Super Boat International

Super Boat International was founded by John Carbonell in 1989. Now they have races all around the country, which attract some of the most talented and competitive teams in the world. These races attract a million fans each year, and the group guesses that the number of attendees will only continue to grow.

Today Super Boat International serves as the premier national and international sanctioning body for offshore powerboat racing. Their website is a great way to stay updated about upcoming races, join other like-minded individuals, and review the rulebook and other important documents.

American Power Boat Association

The American Power Boat Association, or APBA, is another valuable muscle racing resource. The group is a governing body authorized by the UIM (Union Internationale Motonautique). This authorization allows them to keep set records recognized nationally and internationally, provide insurance, and hold championship races. To win a World Championship, a racer needs to be registered with the UIM and APBA. The group also produces the Propeller Magazine, a publication that keeps people up-to-date on all the sport’s happenings.

Muscle Racing USA

David C. Branch runs Muscle Racing, a site devoted to sharing information about the sport, insights into his time racing, videos, and more. The winner of 10 national championships, 4 world titles, and 73 checkered flags over 311 races, David has a wealth of information to share about the sport. On his site you can find his blog, pictures of his favorite boats, and press releases.

These are just a few of the top resources for finding out more about powerboat racing. Checking out these sites is a great way to find schedules, learn more, and explore muscle racing yourself!

This article was originally published at DavidCBranch.net.

5 Factors in Choosing the Right Investment

Choosing the right investments involves learning about mastering investment basics. Although it may not take a long time to learn how to invest money, it may take an investor years to develop a winning strategy. Prospective investors desiring to create investment portfolios may benefit from the following five suggestions:

Following the 80/20 Rule

Economist Vilfredo Pareto invented the 80/20 rule, which is also known as the Pareto Principle. The rule revolves around the concept that positive results gained from new experiences typically result from making an effort. Most good results occur when a person makes a 20 percent effort. Accordingly, the 80/20 rule also applies to people who invest in the stock market.

Holding Investments for the Long Haul

Knowing when to buy and sell presents challenges to the most experienced investors. Although temptation knocks at the mind’s door of every investor, self-discipline helps a person resist the urge to sell investments on a whim. Accordingly, holding assets for several years is a beneficial strategy, especially if dividends play an important role

Paying Attention to Dividends

Investors who buy mutual funds, stocks and bonds offering substantial quarterly dividends may find that stock market volatility becomes less important. Shareholders holding conservative mutual funds for at least 10 years may find that their assets have doubled. This general rule applies even if they never invested any more money during this period.

How to Pick the Right Asset Allocation

Selecting different types of investments comes under the “asset allocation” category. Allocating assets entails creating an investment plan involving various types of investments. Each investment serves a noble purpose. For example, an investor may choose to invest 25 percent of their assets in equities, 25 percent in bonds, 25 percent in mutual funds and 25 percent in ETFs. Some diversified investors may want to buy real estate investment trusts (REITs) or international stocks.

The Beauty of Diversification

Most financial gurus advocate creating diversified portfolios consisting of stocks, bonds, mutual funds, ETFs, international equities and a small percentage of riskier holdings. How to choose the right investments involves creating a sound plan, resisting the urge to sell shares frequently and choosing investments that reward investors with dividends.

This article was originally published on DavidCBranch.com.

How to Create a Budget

No matter your level of income or place in life, it’s important for you to set up a budget. Most people will find little in the way of excitement when pulling up a spreadsheet and plugging in numbers each month. However, doing so is a key toward ensuring that you’re able to build wealth and achieve financial independence over time.

Assess Your Income

The first category that will show up on your monthly budget is your income. You need to assess how much money you have coming in each month. If you’re on a salary, this number should be pretty stable from one month to the next. On the other hand, you may be on commission or have uneven income. This will require a larger amount of savings to take care of the months that have lower income levels. Additionally, you will want to add in any income from side hustles or other part-time work.

Track Expenses

The next step you’ll need to take in setting up a budget that works involves tracking your expenses. Many expenses vary little from month to month. Your mortgage or rent will usually adjust once per year. Most utilities will allow you to set up a budget plan that’s tied to the previous year’s consumption. For those bills that might vary over time, you’ll want to set up a line in your budget for each. Restaurant spending, vacation spending and food expenses will fall into this category. It’s important to avoid spending more than your budget allows so that you can stay out of debt. When expenses exceed your income, going into debt is the only way to make it seem as though ends meet.

Budget for Savings

You’ll avoid debt if you can ensure that your expenses never exceed your income. However, if there is no gap between the two each month, you’ll never be able to build wealth. After setting up your budget, you’ll want to cut back on as many expenses as possible.

This article was originally published at DavidCBranch.com.