Do you see saving and investing as too complicated, too risky, too confusing or difficult? Cheer up, it’s none of those things, it’s simple and there is no excuse for not doing it.
Whether you use a 401k, an IRA or a personal brokerage account doesn’t matter. The basics are the same. Just keep these points in mind:
- Save before any spending and have that automatically taken from your pay, even if it’s only $5.00 a week.
- Try to maximize any free money from your employer if that applies.
- Invest in something simple and low cost; an index mutual fund.
- Never stop investing no matter what the stock market does AND increase the amount you invest regularly even if it’s only a few dollars at a time.
- Automatically reinvest (through the mutual fund) all dividends, interest and capital gains.
- Don’t look at your investments every, day week or even month.
- Be patient and look toward the future.
That’s it‼️ set it and pretty much forget it until you are nearing retirement when you probably want to add a few more income focused mutual funds, like bond funds.
You do know the difference between stocks and bonds, right? If not look it up.