Comments on: How To Draft A Basic Financial Savings Plan

By: Lee Hall

Lee Hall — Wed, 01 Oct 2008 20:52:14 +0000

This is a very good model to follow. The only danger is #2. Most people often miss between what they want and what the savings calculator comes out with. When they do the savings calculation, they find out, how meager it is, and how returns are the most important part of the equation.

3 things to help overcome this.

1 – Use ETFs – they are more cost efficient and save more money by significantly lower fees. And at the same time, ETFs can add the same diversity of mutual funds
2 – You must contribute to your fund on a monthly basis. Just $200 monthly contribution will make the difference between several hundred thousands and a million dollars in the long run (considering at 12.5% return on the S+P, which was done between 1980 and 2005)
3 – Learn to get out of the market when it gets volatile. Using an indicator like the VIX can demonstrate when volatile markets arise. You don’t have to be in the markets 100% of the time to be in it for the long term. Get out when volatility rises.

Hope this help. – Lee

By: Until Debt Do US Part

Until Debt Do US Part — Tue, 30 Sep 2008 11:38:14 +0000

Great article – very informative and I’ve picked up some good ideas from it. Thats what I love about the net. I’m getting first rate advice from an MBA for no cost.

The thing I find about financial management is that there are too things needed to succeed – planning and discipline. You need discipline to plan and you need disciplne to carry out those plans but without plans discipline goes to waste.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Tue, 16 Sep 2008 14:28:57 +0000

I like the process you have described. Many of the planning steps can be expedited for those using Quicken and similar financial management software because they include tools for establishing and monitoring savings goals.