When you start looking at investments of all sorts, you are going to find that there are a lot of opinions about how it should work and what it’s going to do to benefit you in the long run. Here are some things a financial advisor jacksonville will suggest that you invest in over time.
– Retirement funds: IRA’s and 401k’s are the best plan for this. CD’s are also a safe option. Why? Because this is something you really don’t want to take a lot of risk on. You can put some money in the stock market toward this, but overall, the best plan is to stick with safer investments.
– College education. CD’s and bonds are two of the most common ways that people invest for a child’s college. But, you can afford to take a little more of a risk than you would for retirement funds. Why? Because for college, loans and grants are available. You don’t quite have that flexibility with retirement.
– “Risk-Taking” Cash Now, this is the place you can afford to take the most risk. Why? Usually, you’ll want to set aside a certain amount of money (say, $1,000) that you want to put into the stock market. If you’re using it as a learning experience, you can lose some of it and it’s not as big of a deal as it would be for actually saving up for something.
– Vacation or holiday money: Many financial institutions have what’s called a vacation club or Christmas club account. Basically, you pop money in there, it accrues interest, and you can’t touch it without a penalty.
Take some time to research and work with a professional to see what you may want to invest in based on your needs. You can learn a lot and, in the long run, you’ll save a lot more cash as well.