One of the most popular questions people ask is whether they should save their money or invest it. The simple answer: both. While investing your money traditionally earns more than a savings account, there are risks and downsides.
Many misconceptions come with the term “financial advisor.” For many, partnering with a financial advisor is something you do later in life as you approach retirement. Others may assume they cannot afford one, or they don’t have enough funds saved to justify their services.
Those who begin saving for retirement earlier, rather than later, enjoy plenty of advantages. The most overwhelming reason to begin saving as soon as you can is that you put your money to work for you as soon as possible.
The moment you walk through the front door, your phone rings. You fumble the smartphone out of your pocket and answer it eagerly, speaking with the job interviewer that you just saw an hour ago. They excitedly give you the good news as you can barely hold back the scream of joy.
Playing the stock market isn't the same as buying a lottery ticket, although Wall Street could be considered the biggest casino in the world. The fact is you are only risking a few dollars if you buy a lottery ticket. If you try to act as your own stockbroker, you could be putting your entire financial future at risk.
Nearly all of us can find a reason to put off saving money. We have all done it — we come up with excuses like I will start saving when I get my raise this year. The fact is that most of us spend more money as we make more money, meaning our best intentions to start saving gets put off year after year.
Every day you inch a little closer to retirement. And, if you’re like many future retirees, you may be starting to second guess whether you have enough money saved for the lifestyle you’ve dreamt about for your golden years.
When it comes to saving for retirement, time is your best friend. The longer you’re able to allow compound interest to work in your favor, the better. However, even if you start saving early, it’s not uncommon to feel like you may be lagging in the retirement savings department.
It’s never too early to begin planning for your retirement. In fact, the earlier you start your planning, the greater security you’ll have when the time for retirement arrives. Many people in their 20s and 30s view retirement as something that is so far in the future that it’s hard to make it a priority.
When it comes to saving money, most people start with a basic savings account. Then, they move straight into market-based investments, such as stocks and bonds.
