If you have $10,000 available, it’s seriously time to think about where to invest it. It’s not the kind of money you can take wild chances with, but you will want to start investing it in a way that will enable it to grow.
My husband teases me because I try to plan everything. From vacations to tomorrow’s breakfast, I’m always making notes, lists and schedules. Of course I know that nothing’s a given and that sometimes things don’t go 100% according to plan. A flight may get delayed. The eggs I intended for a lovely omelet might fall on the floor and break. But still I hold that a good part of success comes with having a plan. Especially when it comes to your money.
I distinctly remember the first adult conversation I had about getting started with investing. I was 25, making about $18,000 a year and still carrying tens of thousands of dollars in student loan debt. One of my former college roommates and I were walking around New York City talking about the new life stage we were in. We were two years out of college, feeling caught between childhood and adulthood.
Saving for a child before you even have one might seem like an impossibility, but it’s actually not. Thanks to a savings plan called a 529, you can start saving for your future child’s education costs well in advance of actually having any rugrats of your own. And guess what! These plans can even help you save on your tax bill.
The Department of Labor (DOL) recently finalized its long-awaited fiduciary rules. The rules mandate that all financial advisors who provide advice on a client’s retirement accounts act in the best interests of their client. The new rules are similar to those already administered by the DOL pertaining to advice provided for 401(k) plans and other qualified retirement plans. Clients will see the greatest impact of these new rules with regard to their IRA accounts, but the changes will likely impact their overall relationship with their financial advisors as well.
We sometimes think of employer-sponsored retirement plans as something almost generic. But there are actually several different types of plans, many of which are low cost and can help you save for retirement much faster. Which one you should choose depends on the type and size of your employer, as well as the economic sector that they are involved in.
“I never want to retire. I love my job and can’t imagine quitting just to enter a retirement full of isolation and boredom like my grandparents did.” Ever heard anyone say this? This sentiment makes perfect sense on the surface. No one wants to grow old, obsolete, isolated and bored. But is this the best approach to your life and how you run your finances? No!
Want to take away the pain of paying medical bills? A health savings account may be able to do that. A health savings account, or HSA, is a tax-advantaged way to reimburse yourself for medical expenses, similar to a flexible spending account (or FSA). But unlike the flexible spending account, the balance in an HSA accrues year after year and is never forfeited if it goes unspent in a given year.
Can you be a graduate student and a smart investor at the same time? Without a doubt — YES! Your tactics will need to be different than someone who is fully employed, but you can certainly be a smart investor while pursuing an advanced degree. Read on to learn how to balance being a college student and plan your finances for the future.
Paying off debt successfully requires a lot of determination and hard work, oftentimes at the expense of other financial goals. This can push back your goal of saving for retirement and investing to build wealth. As someone that’s dealing with the plight of student loans, I have neglected many other financial priorities in hopes of being debt free sooner.