Graphic: How Much Should You Have Saved Up for Retirement Today

Check out the handy table below from JP Morgan Asset Management’s 2014 “Guide to Retirement” that details how much should you have saved up for retirement today based on your current age.

How Much Should You Have Saved Up for Retirement Today

The chart details the amount of money a person must have in retirement funds saved to have sufficient funds to maintain their lifestyle after retirement. The chart clarifies that if people begin saving at a younger age for retirement the funds will grow greatly because of compounding interest. The chart is used with a intersection of both age, and yearly earnings.

Albert Einstein once called compounding interest the “8th wonder of the world”, and this chart demonstrates this maxim is true. The chart assumes a retirement age of 65, and allows for 7% growth in pre-retirement fund earnings, and 5% growth in earnings after the retirement age of 65. The chart assumes a annual contribution of 5% from the working person for their retirement. It also forecasts an average of thirty years retirement after the age of 65.

How Do You Make Money on Stocks

Hypothetically say you are new to stocks and you ask yourself “how do you make money on stocks?” You might also go how do you make money on them? Is it from cashing out of them? How much money can you make? There is a lot of different question you may have.

how do you make money on stocks

Let’s make an easy scenario the local pizza store (Pizza Town) needs money to expand, but Pizza Town doesn’t want to take a loan, so instead they have has an IPO (Initial public offering). They issue one hundred shares of stock. The entire business becomes valued at $1,000, so each share of stock is worth $10. If you buy one share of PT (The ticker symbol for Pizza Town).

A few months later, Pizza Town’s expansion is doing great, and Pizza Town is now valued at $2,000. The denominator (the total shares outstanding, 100) hasn’t changed, but the numerator has (the total value of the company has moved from $1,000 to $2,000). Your fraction (1% as represented by your one share) of Pizza Town is now worth $20. You can either hold on to it and wager that Pizza Town will continue to grow the business and increase profits, or you can sell it and take a 100% return.

As for how much money you can make, it’s limitless. Your stock can continue to raise in price/value for ever or it could drop and become worthless. Most everything about stocks is timing.

Effective Federal Funds Rate

This is graph shows effects in federal funds rate between 2006 to 2014.

Effective Federal Funds Rate
Via FRED

Between 2006 to 2008 it was very high. But after 2008 it is continuous going down. The rate of increasing federal funds rate not very good. First two year’s it is going down, but after that from 2008 to 2014 (6 years) it is continuously going down. It is not good sign. It shows negative mark near 2010 to 2014 it is almost finish. It is not showing any chance to grown up the federal funds rate. The government will need to take some better actions for it to continue to grow up.

Impact of US CEO’s on Companies Has Never Been Higher

The image describes the positive impact of CEOs on businesses for twenty year rolling periods. The time period used is 1950 to 2009 — a period of fifty nine years. The scale used indicates year and impact in percentage.

Impact of US CEO's on Companies Has Never Been Higher

At first glance, it appears that CEOs have had a huge impact on the business market, with their contributions seemingly taking up more than half of the graph, but closer inspection proves differently.

Actually, the CEO contribution to business improvement has been at an unsteady rate of ten percent for the six decade time period.

For the first thirty years, CEOs have contributed about ten to fifteen percent impact, starting from 1950 to 1980. For the most part, the CEOs have contributed to the lower range of the ten to fifteen percent frame, with an interesting surge for the last four years of the first half of this For the last four years of this period, CEOs made impact of fifteen percent or higher. A significant increase from the last twenty-six years.

From 1980 to the end, however, CEO impact was significantly raised when compared to the first half. Whereas they had previously made almost minimal impact — less than five percent impact for thirty years, CEOs initially began making about fifteen percent impact or slightly more for the first fifteen years and then twenty percent or near to twenty percent more impact after that.