The Lookout Investor

Retirement and retirement planning are commonly considered to be problems for later in life, however, the sooner retirement planning starts the better. Retirement planning is one of those things where the longer you put it off the harder it is to deal with once you get to it. By the same token the earlier you start planning the easier the process will become. Many people put off funding their retirement accounts (Roth IRA, 401k, etc.) so they can buy something more appealing at the present time. For example, a new television or even a car depending on how much they have to contribute. This often puts them in a worse financial situation. So don’t wait. In fact, if you are a student working now, even your summer job can get you off to a great start. Why? Because you have time on your side. Let’s take a look at three possibilities based on saving and investing your summer job earnings. The numbers used are three different amounts that are possible to make in a summer and the total ...

There have been many bankruptcies during 2020, as the COVID-19 pandemic weakened companies including J. Crew, Hertz, 24 Hour Fitness, JCPenney, and dozens of others. These examples show how safety in investments is instrumental. In order to grow your money over a long period of time the companies where your money is placed must be financially sound. There are multiple statistics that attempt to predict the potential earning of a company, however, there are only a few that can confidently supply a prediction of safety and sustainability of a given business. One of the most useful statistics to measure safety is the Altman Z score, a composite number that combines liabilities, assets, earnings, and market value. These are the building blocks for most industrial businesses and give you a good idea of the risk of the business based on its profitability and the scale at which it works. The Altman Z score creates ratios that compare and contrast the multitude of statistics that show the ea...