growing and accumulating wealth for long-term goals
Investing serves to grow and accumulating wealth for long-term goals.
Common investments include: mutual funds, stocks, bonds, and cash investments.
Investing builds wealth faster. While investing is riskier than savings, it can generate more returns.
Ask yourself:
when will you need money?
how risk-averse are you?
can you stomach a downturn?
If you are currently experiencing financial stability, if you are less risk-averse, and if you can manage a downturn, investing could be a good option for you.
We suggest diversifying your investment portfolio. In other words, invest in a variety of industries. By doing so, you can lower your investment risk as gains in one sector could offset losses in another. Index funds are a good way to easily diversify your portfolio.
Platforms
Fidelity, TD Ameritrade, Charles Schwab
Investing Resources
Investopedia (investment strategies)
MorningStar (specific companies, bonds, ETFs ...)
CNBC (market trends, state of the economy)
Investment Retirement Accounts (IRAs) are a form of pension provided by many financial institutions. IRAs provide tax advantages for retirement savings. It is a trust that holds investment assets purchased with a taxpayer's earned income for the taxpayer's eventual benefit in old age.
There are two types of IRAS, traditional IRAs and Roth IRAs. Roth IRAs differ from a traditional IRA in the sense that it taxes you when you put in money. This is advantageous for college students. As a college student your income is lower, so you won’t pay as much in taxes when you put money into your Roth IRA account now.
Choose where to open your IRA:
Hands-On (Brokerages offer full-service management and may have a wider selection of investments)
Hands-Off (a robo-advisor comes with low management fees, risk-based investment options, automatic portfolio balancing, and uses an online dashboard)
Select the account type
Roth vs. Traditional
Open the account and start contributing
Contributions are subject to a limit in the IRA. They can usually be paid online with the broker of your choice. The current Roth contribution limit in 2024 for people under 50 is $7,000.
DISCLAIMERS
*Financial DisclaimerThe information provided on this page is for general informational purposes only. All information on the site is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the Site.This site cannot and does not contain financial advice. The financial information is provided for general informational and educational purposes only and is not a substitute for professional advice. Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate professionals. The use or reliance of any information contained on this site is solely at your own risk. The information provided has not been reviewed, approved, or otherwise endorsed by any of the entities included within the post. We do not accept responsibility for any investment decisions made based on the information provided on this site.
*Investment DisclaimerInvestments are subject to market risks, including the loss of principal. The content on this site is not intended to be investment advice, and it should not be assumed that the investments recommended will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. Consult your financial advisor before making any financial decisions.
