To achieve any financial goal, you must plan and invest properly. You may have short term goals and long term goals. There are so many investment options, you may not know where to start or how. Your investment options fall into two categories: build on the savings account you already have or start saving the money all together. Here are 4 tips for life investment shopping.
When shopping for annuities, it’s always a good idea to sit down with a few advisors to get a full scope before signing up with one. Annuities are popular because they are a good tax shelter and almost a guaranteed method of an annual retirement income. Before investing, think about your backup plan. If you will need to pull a large amount of funding in the future from another source, can you do so? If not, invest a smaller portion into an annuity.
Life Insurance Investments
Investing in life term insurance not only gives you a peace of mind for yourself but your family as well. Life insurance is designed to protect your estate and handle your final resting costs. Your home and vehicles can be paid off, children will have their educational funds, and your spouse will not have a heavy financial burden. Choose a life insurance plan that allows you to borrow funding or withdraw it as cash during your lifetime as well. Those savings add up quickly. It’s cheaper and may be faster than applying for a traditional loan in an emergency situation.
An easy life investment that many people do not use is their employer’s 401k plan. Most companies will match your investment up to a certain percent. This is free money to save towards your financial goals. Once you have left a company, depending on their terms, you may be entitled to the entire amount they have matched. However, you are not required to leave the funds there. Shop around with your bank, credit union, or other retirement portfolio management company, to see who can get you the best performance.
When shopping for places to start or transfer your IRA account, start at your own bank. Your bank or credit union offers free investment advice and work as your financial advisor. Some accounts require a minimum balance to open. If this is the case, open a small CD and grow your funds from there. Then, you can transfer your funding into an IRA. You are able to invest in the IRA monthly, annually, or however you see fit.