You probably already know that one of the best ways to grow your money for the future is to invest it. The first place to start is with your employer’s 401(k) which allows you to contribute on a regular basis, and not worry about what the market is doing on a daily basis. Many 401(k) plans offer a company matching percentage, which is supplemented money. For example: your employer offers a 3% match, make sure that you’re contributing at least 3% of your income to receive the full match.
If the idea of where to invest your hard-earned money is intimidating, there are usually mutual fund choices in an employer plan that provide an easy start point. One type of diversified mutual fund will normally have a targeted year of retirement in the name, and this allows the mutual fund to manage your money for you. What other investment decisions are important to consider? Let’s explore how to start investing in a way that’s diversified with reasonable risk for your goals.
Posted in: brokerage, firm, fund, index, investing, market, plan, retirement, savings, stock
In many all aspects of life, there are things we can do ourselves and other things we can’t. If your taxes are simple; you can probably do them yourself, if they are more complicated, you go to a Certified Public Accountant (CPA). If you cut yourself, you get a band-aid; but if you need stitches, you go to a doctor. The same holds true for handling your finances. In the early stages of accumulation for retirement, and you are maximizing your 401(k) contributions, Individual Retirement Accounts (IRAs), and you’re feeling comfortable with your investment selections; you may not need professional help. The do-it-yourself approach may work well. Usually, investment mistakes made during the accumulation years can be recovered over time. However, investment mistakes closer to and in retirement become critical. There is less time to recover from a wrong move. Too often, self-investing can lead to over concentration in bull markets, panic sales in bear markets, and lopsided investment strategies.
Posted in: investing, retirement