Finance and Retirement #2

Investments for beginners.

 

More good ideas on what to do what your money when you are ready to invest.

Annuities are a safe and solid investments for beginner investors. Annuities can have extra cost and expenses that can eat into you return so you must be careful when investing in these. There are also different types of annuities so you must do your homework to figure out which one is best suited for you. Annuities can be complex but just ease your way into them and do not be afraid to seek professional advice. In fact before any investment I suggest you sit down with an investment advisor and ask questions and seek advice. You can always go to your bank and ask for an appointment to speak with a financial planner and its free.

 

 

Advice about investing in the Stock Market.

A huge thing about the stock market is an investor must understand is that it fluctuates. A smart investor never rushes out and sells their stock when prices drop, in fact they should do the opposite and perhaps buy more of that stock. Let me explain, what goes down must come back up and it has been proven over time that this is particularly true when it comes to stocks. Since this holds true when the price of stock goes down why not purchase more and enjoy the profits when it eventually goes back up. Another huge thing an investor must understand when dealing in the stock market is that your in it for the long haul, another words do not micro manage your investments on a daily basis. Check out how your stocks are doing once a month because we are beginners and not day traders. For more on stocks visit this awesome site for great tips.

 

 

Real Estate by far the best way to build wealth and set yourself up for retirement.

Real Estate is the number one way to build wealth hands down and its been proven. Investing in real estate is more for a seasoned investor and you must know what you are doing or you could end up losing money. Here are some tips on a few different ways to purchase real estate. You can go to your local court house and purchase foreclosed homes, you do have to have the money at the time of the sale but I have mentioned this is for the seasoned investor with capitol. You can contact real estate agents and let them know that you are looking for fixer upper homes and at what price range. Another great way to get really good deals on real estate is to contact banks and let them know your interested in purchasing their bad paper loans, its another term for houses that have foreclosed and did not sell at the court house. Good luck and remember to take your time and ask questions or you might end up losing money and that would defeat the purpose.

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Finance and the good ideas on how to Invest for retirement.

Finance and Retirement.

Finance and saving for retirement will be a life long struggle for most, but it does not have to be. The biggest and best piece of advice is to start saving and investing at an early age. Another great idea is to commit a certain percentage of your income to savings or your retirement fund.By starting to save and invest at an early age you will have the benefit of compound interest working in your favor. Also if you begin at an early age you will be a seasoned investor when comes time to invest the majority of your wealth in your later years.

At what age and how much should I save.

It is never to early to start saving, but if you start at the age of 18 you will have developed an excellent habit of learning how to save. A rule of thumb is to save at least 20% of your net income. This is the income that you take home after taxes. A young adult typically does not have enough to invest until after college, however you want to try and get 6-9 months of your monthly income saved up just in case you come in to hard times. By doing this you will not have to borrow or use credit cards to pay your bills every month if you happen to lose your job.

What should I do with my money.

After you have 6-9 months of savings in the bank and all your basic necessities are met it is time to consider the best way to get a return on your money.  First are Bonds, and CD investments. They both offer a great deal of security with similar returns, and at the same time they are predictable. They are secured by the government so you will get your money back and the rate of return is stated at the time of purchase. Second is a long term saving deposit such as an IRA. You can put $5500 a year of your hard earned money into an IRA tax free. The only time you would have to pay taxes is if you make a withdraw before retirement. Remember diversification is the key in building a safe and healthy retirement fund. More to come on what to do with your money in my next blog but for now check out this site for more on what a beginner investor should do with their money.

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