This week, our focus in the FREE "The Wealth Plan" coaching container is on one of the most crucial aspects of financial success: building your investment plan! It’s the final session and arguably the most important—it’s where you'll learn how to put your savings to work through investing.

I know I might sound repetitive, but the key to everything is HABITS.

To inspire you, let me share a powerful example that I hope will motivate you to start investing consistently today.

If you have, recently had, or plan to have a newborn, one of the smartest financial moves you can make is to start investing for your child right from the beginning. It doesn’t have to be a large amount. Whether it’s $25, $50, or $100 a month—anything works. And if you’re not in a position to set aside that money right now, find a way. This is incredibly important. You can even ask family and friends to contribute “monetary gifts” for your child. Believe me, your child will thank you later. Here’s why...

The examples below assume investing the sums below every month in a global diversified basket of stocks (index fund or ETF) with an 8% expected annual return for 65 years ( from when you are born till retirement)*:

$25 =>> $664,390

$50 =>> $1,328,782

$100 =>> $2,657,564

$150 =>> $3,986,345

Let me ask you: Are you currently investing regularly—for yourself, your retirement, or your children?

If not, now’s the time to change that! Join my FREE "The Wealth Plan" coaching container, where I’ll equip you with the tools to start saving and, ultimately, investing more for a secure future!

Sign up here. The  next container starts at the beginning of October!

*does not include inflation adjustment at retirement

DISCLAIMER:

The information provided in this newsletter is for educational and informational purposes only and does not constitute financial advice. It is important to consult with a licensed financial professional or advisor before making any investment or financial decisions. Every individual’s financial situation is unique, and any strategies or tips shared here may not be suitable for your specific circumstances. Always conduct your own research and consider seeking professional guidance.

Last week the Federal Reserve (aka Fed) slashed interest rates by 0.50%. Benchmark rates are now between 4.75% to 5%.

Fed chair Jerome Powell wants to do what he can to recession-proof the economy and keep the labor market healthy. Inflation is no longer their focus.

And now that the central bank has switched its focus, investors will need to follow suit:

- Borrowing money- for a mortgage, an auto loan and more- will get cheaper. The US 10 year Treasury is down 0.22% at 3.74% ( it was 5% about one year ago!)

-Savings accounts will provide you with a lower yield. You may want to consider moving some of the money in high yielding savings accounts to a diversified basket of global stocks

As far as the financial market reaction to all of this, everything seems to be calm and in order. Year to date, the SP500 is up 20.5% and the global stock index (MSCI World) has returned 15%.

© Copyright, 2024,Elisabetta Basilico,@thewealthmamma

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