According to @investopedia in the last 100 years, the U.S. stock market has returned on average 10.2% per year. So if you invested $1 in 1919, today you would have $17,820!
We all know how important investing for our financial future is, but a lot of people are still confused on where to start.
That is why I made this quick video just for you to help you get started on your investing journey.
With investing your potential for wealth is huge and the sooner you start the better. Here are some tips to get you started:
Start Learning About Investing NOW
Just like any new skill you have to dedicate some time and energy to learning about investing. I recommend going to Investopedia.com where there is a volume of knowledge about investing. I recommend setting aside at least 1 hour a week to learn more about the fascinating world of investing.
Make your Investing Automatic
Once you research a few online investing account providers and find the right one for you, make your contributions automatic. Even if its only $50/month. This will get you started on your investing journey. Review your contribution and accounts every few months and see if you can add more to your monthly contribution.
Research the Type of Investment Plans
Investments plans like 401(k) or IRA are ideal for investing your money for retirement. 401Ks are for those who have an investing plan where they are employed. This is great because often employers will match a percentage of your contributions.
IRA stands for individual retirement accounts. There are several kinds of IRAs: traditional IRAs, Roth IRAs, SIMPLE IRAs, and SEP IRAs. The key differences are whether you want to pay taxes on your earnings now or later. I will go into more detail about this in next week’s blog.
Real Estate, although more complicated than stocks and bonds, is another vehicle for investing. According to Investopedia article, A Real Estate Investing Guide, real estate in this country has consistently increased in value from 1940 to 2006. While there was a dip during the subprime mortgage meltdown of 2008 to 2010, it has now rebounded and has been increasing overall. Good news if you are ready to take the leap into real estate investing.
Overall, if you want to retire with money in the bank, you need to considering making investing a priority in your financial plan.
After you’ve watched the video, I want to know: What is your next move with your investment journey?
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