Credit: Shutterstock photoThe other day, my middle child's school bus never showed up. As a result, I was pressed into action to drive her to school, delaying my normal morning arrival at the office.
Being a systems-centric person and methodical madman, the delay ultimately proved uneventful. The work I normally get done ahead of time simply got done a bit later, but still with plenty of time to spare. Over the years, I've learned to rely on the systems I've set up to help save me from utter chaos when the unexpected happens.
I feel it's very important for everyone to adopt processes that they can rely on. Whether it's your morning routine, your career, or even your investing. All too often I hear about people whose financial well-beings are put in jeopardy because of personal issues they can't get their arms around. I've found that as long as you put your mind to it and take a methodical approach, anything is possible.
This approach is even more important in investing. Many would-be investors claim simply not to have the time to open a brokerage account, research stocks, and manage their investments. Yet these same folks spend hours a day in front of the television. In most cases, the only thing stopping people from getting things done are excuses. If you're willing to develop a system that can accommodate any unexpected events, you won't need excuses. You'll be able to focus instead on opportunities to help you build wealth and achieve further success.
Don't Let Your Success be Short-Lived
The term "short-lived" always gives me the chills. I never want to think about business or investing success as fleeting. As a result, I always try to think of things from a long-term perspective.
I urge you to do the same. Don't let manic business media coverage steer you towards day trading. Stay focused on your wealth-building goals. Develop systems to help keep your investing discipline in place.
As you achieve successes throughout your life, just remember you've got plenty more ahead of you. The investing landscape is littered with short-lived success stories, as people who rest on their laurels rarely succeed over the long term.
Reminder: Retirement Account Deadlines Approaching
One of the best long-term retirement strategies an investor can use is investing in dividend-paying stocks within their Roth IRAs. Roth IRA Distributions, including capital gains, interest, and DIVIDENDS are tax-free if you are at least age 59 1/2 years old, and the account has been established for longer than five tax years. Dividends paid into a Roth account are never taxed, even when withdrawn. This special treatment differs from dividends accumulated in a Traditional IRA, which would be taxed during withdrawals. The best part of a Traditional IRA is the tax credit is counted the year you do it. Some accountants prefer clients to take this road, knowing it can ease one's tax burden for the particular year a traditional IRA is funded. Do remember, though, that withdrawals taken from an IRA account before age 59 1/2, including income from dividends, is subject to a 10 percent penalty tax in addition to ordinary income taxation. Always consult with a tax specialist before making any moves that may incur tax consequences.
Of course, there's nothing wrong with purchasing dividend stocks within a Traditional IRA either, but Roth IRAs are particularly attractive to dividend investors looking to maximize their future retirement withdrawals.
For those of you who are self-employed, you have the benefit of building a retirement nest egg very quickly with a SEP-IRA. If you're self-employed, you can contribute 25% of your earned income or $50,000, whichever is less, to a SEP plan for 2012. Think of all the high-quality dividend stocks you can be putting to work for yourself - that's the true essence of making your money work for you! Again, talk to your tax professional and see how you can take advantage of this type of account.
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An Important Note Regarding the Best Dividend Stocks List
We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one's account until we see a better entry point or catalyst.
And here's one last thing to remember about what we do here at Dividend.com. It's not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!
Thank you for sharing part of your weekend with me, and please be sure to pass this post on to anyone you think we can get inspired and educated about money, building wealth, and using common sense to do so.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
