Today’s economy has everyone on the run and has those of us with money in the market is sheer panic as we have watched what we thought was going to be a huge nest egg be whittled down to next to nothing. Our personal finance picture has become very spotty and it is time to look into other areas to ensure that we are not working until out last day of existence.
The market has always been a lure for people that are trying to make a quick score or get rich quick without a lot of effort. This is not to say that it cannot happen, but you have to do research and stay on top of all your trades. There are other personal finance choices available to you that you may want to explore.
One of the most popular retirement funds for people in their younger years is to set up a Roth IRA. This is an IRA that you don’t get a deduction for in the year of your contribution, but you do not pay taxes on the money when you pull it out after retirement as you have already paid taxes on it in the past. This is something that has become more and more popular over the last few years.
If you work for a corporation, you probably have the opportunity to invest in a 401k. If there was ever a personal finance decision that you should make, this is it. The major factor is that most companies will provide a full or partial match contribution up to a certain percentage of your investment. You want to make sure that you choose to put in at least the amount that they are willing to match.
Even if you have to tighten up the belt a little bit, you will want to get every penny that you have coming to you. There are no other investment opportunities that will give you this benefit. In most cases, your company will require that you are with them for a minimal period of time before becoming fully vested, but the match will be available from day one.
For those that don’t have the knowledge of the market, but still want to get in on the earning potential that is there, you may want to consider Mutual Funds. This is a fund that an investment manager puts together for their firm in a diversified market to try and earn you the most for your dollar. There are just as many good ones as bad ones, so make sure you do your research.
If you are still feeling a little gun shy about things and would prefer something that may not earn you as much money, but is 100% safe, you may want to look at money market accounts and CD accounts. CD’s will generally offer a higher interest rate, but your money is locked up and is not accessible without a penalty. If you choose a money market, you will not get the same interest, but will have daily access to your cash in case another personal finance investment comes along that you want to take advantage of.
The market continues to be a volatile experience unless you can keep your eye on it for every second. While there are still plenty of blue chip stocks, most cannot afford to get in at that level. You are better off taking one of the above personal finance options and let your money grow to ensure a safe retirement fund that will allow you to enjoy those golden years instead of working them away.
