Whether you are a first time wage earner trying to save a little here and there, or far along in your career looking to save for retirement, when you are just starting to invest, the choices can be overwhelming.
With so many options available, you may feel that you need the help of a financial professional to navigate the complicated world of investing. Financial terminology and Wall Street jargon are intentionally confusing so that you will believe that you couldn’t possibly handle it yourself.
The truth is that you can never fully trust anyone but yourself to act in your own best interest. No matter how highly recommended an adviser may be, or how well their fund may perform, a financial adviser is primarily responsible for generating income for their firm and themselves.
While it may seem tiresome, you must be actively involved in your own finances, and do what is required to ensure your financial security well into retirement. Carefully review all options for growing your capital, and chose the options that best fit your investment objectives, and fit within your time frame.
Keep It Simple
An easy way to grow your money is in an interest baring savings account. Savings accounts are an excellent place to start due to the fact that they are easy, government insured accounts where you can place your money risk free while you decide where else to invest.
A savings account is ideal for teenagers just entering the work force, as you don’t just save money, but you also earn interest on your deposits. Shop around for the best rates, as they very from bank to bank. The longer you leave your money in the account the more interest you will earn.
This type of account is a simple way to grow your capital, it should be a stepping stone to other opportunities with the potential for higher returns.
Investing In Stocks
The stock market has historically been the best path to wealth, and it has never been easier to research and invest in securities. Many online brokerages offer low cost trades, as well as tools to help you become a better investor.
Investing in the stock market requires a considerable amount of time to devote to researching companies, as well as monitoring your portfolio. Capital invested in the stock market is not guaranteed by the government and there is the risk of losing some of not all of your principle investment.
401Ks and IRAs
When investing capital for retirement, it is wise to explore these options due to their great tax benefits, and ease of use. A 401k is a great option that is offered through you employer, and its hassle free style suits many investors. You have an amount withdrawn for every paycheck and invested in the funds of your choosing.
IRAs and Roth IRAs are also excellent avenues to building wealth for retirement, and many banks and brokers offer this type of account. There are minimum and maximum amounts that you can invest in this account without incurring penalties. An IRA is subject to the movement of the market, and your money could either decrease or grow depending on the stocks in these funds.
Always carefully consider every potential investment and make sure that you are comfortable with the risks involved, and to ensure it fits into your long term investment objective.