Participating in your workplace savings plan can be a smart financial move. In addition to offering a vehicle to help when saving for retirement, you can:
1. Lower your current income tax bill and delay paying income taxes on your contributions and any earnings until you withdraw them from the plan.
2. Increase your chances for long-term success by contributing regular amounts on a consistent basis.
3. Choose from a variety of investment options to help meet your investment needs today and your income needs during retirement.
Once you've decided to start saving for your future through your workplace savings plan, there are a few investment basics you will need to know.
Simply put, you want to invest in order to create wealth. It's relatively painless, and the rewards are plentiful. By investing, you will have a lot more money for things like retirement, education, recreation - or you could pass on your riches to the next generation so that you become your family's Most Cherished Ancestor.
Whether you are starting from scratch or have a few thousand dollars saved, Investing Basics will help get you going on the road to financial well-being.
What are you saving for? Retirement? College for the kids? A new speaker system complete with woofers and tweeters? An exotic animal menagerie completes with Chihuahuas and canaries ? A retirement villa in the sun-baked hills of Tuscany?
Now that you know why you are investing and how to get started, it is time to dig deeper and pick some investments. As you may have noticed, there are several categories of investments, and many of those categories have thousands of choices within them. So finding the right ones for you is not a trivial matter.
The single greatest factor, by far, in growing your long-term wealth is the rate of return you get on your investment. There are times, though, when you may need to put your money in some place for a short time, even though you will not get very good returns.
Setting financial goal is an exciting part of financial planning. It gives you the opportunity to plan actively what you want to do with your money. Completing the goals worksheet will help you know what it will take to achieve your dreams.