No matter your age, now is always a great time to start investing for your retirement. When you start early, you give your money more time to potentially grow. Whether you can invest a little or a lot, enrolling now is an important part of planning for your life in retirement. The earlier you start, the more time your money has to possibly grow for you.
Keep in mind that investing involves market risk, including possible loss of the money invested.
Give your money time to grow
Want to see what kind of difference starting now can make? Use the What’s the cost of waiting tool. It illustrates how much an investment could potentially grow over time if you start now, compared to starting later. Even starting small – say $25 each pay – may help you move closer to your retirement goals over time. Giving your money time to grow may result in higher returns.
Get the help you need
Today is a great day to start investing for your retirement. Talk with one of our Retirement Specialists to get started investing for your future.
The Smart Way To Make Your Money Grow
If you want a shot at becoming wealthy, you need to do more than simply earn money. And the best way to grow your money is by learning how to invest. It’s as simple as that. When you become an investor, you’ll be using your money to acquire things that offer the potential for profitable returns through one or more of the following:
- Interest and dividends from savings or dividend-paying stocks and bonds
- Cash flow from businesses or real estate
- Appreciation of value from a stock portfolio, real estate, or other assets
As you learn to become an investor, you will begin to devote your limited resources to the things with the largest potential for returns. That may be paying down debt, going back to school, or fixing up a two-family house. Of course, it may also mean buying stocks and bonds, or at least mutual funds or exchange-traded funds. Thanks to advances in technology, you can start to invest with as little as $5 a month and a smartphone. It’s our job to help you filter out the noise, learn the basics, and make good investment decisions from the start.
Keep investing as simple as possible
Create broad diversification through a mix of low-cost mutual funds and ETFs, while keeping it fun by holding individual stocks with up to 10 percent of your assets. The most important factor in being a successful investor is not the stocks and funds you pick. Successful investing depends on:
- Choosing proper asset allocation – the overall mix of bonds, stocks, and cash you hold in your portfolio.
- Making and sticking with an automatic investment plan – this way you avoid making terrible, emotionally-charged decisions – like selling at the bottom of a market crash.
The investing information on Money Under 30 barely scratches the surface of all the knowledge out there about investing, but that’s OK. We’re not trying to train the next class of hedge fund generations so much as give the average person enough knowledge and confidence to begin investing on your own.
is a type of professionally managed investment that pools your money with other investors. The fund’s managers then use the pooled money to buy securities for the group. It’s best to start out investing in mutual funds or exchange-traded funds rather than individual stocks and bonds until you get your feet wet. These types of funds enable you to invest in a broad portfolio of stocks and bonds in one transaction rather than trading them all yourself.
They’re not only safer investments (because they’re diversified), but it’s often far less expensive to invest this way. You’ll either pay just one trading commission or nothing at all (in the event you buy a mutual fund directly from the fund company), as opposed to paying trading commissions to buy a dozen or more different stocks. Although mutual funds can be purchased through any brokerage account, you’ll save money on trade commissions by buying funds directly through a mutual fund company like E*TRADE or Ally Invest.
Whether it’s corporate, municipal or treasury, bonds are a great way to leverage your investment against the success of other entities. Bonds are debt security which raise capital for others. They finance new companies, local projects and even the government. While no investment is risk-free, government bonds (T-Bonds) are just about as close as you can get.
If you are trying to really get started as a first-time investor, one option for you is to go the robo-advisor route. The easiest way to understand the nuts and bolts of robo-advisors is that they are financial advisors that use algorithms to provide you with the very best advice about financial investments.
Robo-advisors are extremely popular at this point because they make investing accessible for everyone. These easy-to-use apps are more convenient, more affordable, and they have lower investment minimums than standard financial advisors. Plus there’s no investment broker and the costs are lower as compared to traditional management firms. There are a bunch of great robo-advisors out there, but as is true with absolutely everything, not every robo-advisor is right for every investor. So we’ve put together a list of our favorite robo-advisors and who they’re perfect for.