If you’ve been pushing yourself as hard as you can, but never seem to get ahead; you may be overlooking one of the easiest ways to make money . . . by investing it. If you invest wisely, money works for you.
Your body and your mind allow you to toil only so many hours at a time. If you save some of your earnings, though, and put those savings into solid investments, your money can work for you 24 hours a day.
Hard work isn’t the only way to get ahead financially
Most people who put 10 to 20 percent of their income into sensible investments every month over their lifetimes end up with small fortunes. Some can retire as early as their 40s or 50s, depending on how diligent they were at sacrificing small portions of their incomes early in life to reap the benefits later.
There are many places to put your money to make it grow. Below are just a few ways to invest monthly and watch your savings multiply. Consult a certified financial advisor to help get you started with:
Savings accounts. Even small interest rates add up to ample amounts with compound interest (interest paid on your savings; then, interest paid on interest already earned}. Use savings accounts to accumulate cash for specific goals, such as emergencies, holiday gifts, vacations or saving bigger amounts to put into other investments that will return more money for you.
Mutual Funds. A mutual fund is a group of various investment vehicles created to sell in small chunks to many investors. Mutual funds are made up of diversified stocks and bonds that are traded by professional investment managers who do all the research, buying and selling for you.
Traditional 401(k)s. A 401(k) is a savings plan offered by an employer who allows you to use a portion of your paycheck to invest . . . while deferring income taxes on your money until you withdraw it at retirement. Often, employers match your savings up to certain amounts. Smart employees contribute enough money to meet their employer match, usually from a few percentage points, up to 100 percent.
Roth IRAs. Roth IRAs are individual retirement accounts where you can save after-tax income up to a certain amount set by the internal Revenue Service (IRS). Roth IRA earnings are then tax-free. All withdrawals after the age of 59.5 are also tax-free. r
Traditional IRAs. With traditional IRAs, your earnings may grow tax-deferred until you withdraw them when you retire. Traditional IRAs also differ from Roth IRAs, as your contributions (defined by the IRS) may qualify for deductions on your tax return. r
ETFs. Exchange-traded funds, or ETFs, are groups of securities from around the world that can be bought or sold similarly to buying individual stocks in various companies. With ETFs, individual investors select groups of investments according to their risk tolerance and financial goals.
Manage Your Money . . . financial facts for a brighter future provided by
Advanced Asset Management LLC
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Ronald Van Surksum, CFP
4555 Wilson Ave SW – Suite 2 Grandville, MI 49418
Phone: (616) 531-5220 Cell: (616) 450-8439
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