3 Tips for First-Time Investors
There isn’t a worker in America who doesn’t know he or she should be saving money—especially given today’s economic conditions. Whether you're saving for a home down payment, college tuition or a retirement nest egg, investing in the future is a wise financial decision. Understandably, the two most pressing questions usually are: “How much can I afford to save?” and “What is the best way to make my money grow?”Financial experts agree that long-term investing is the surest way to build savings—and also that you do not need a lot of money to get started. What is critically important, however, is that you save on a consistent basis.There are classes you can take, books you can read, and experts you can consult in order to learn the finer points of investing. To begin with, however, there are three fundamental steps you must take: 1. Determine your savings goals. You need to know what your savings goals are in order to figure out how to get there. Let’s say you want to retire at age 65 with the same standard of living you have now. You can find retirement calculators online to help you determine how much money you will need in order to reach that goal.2. Evaluate the stock market. Guaranteed investments and savings bonds are great for reaching short-term goals. They generally return about 2% to 5% at best. But if you have some time to reach your goal, investing in the market will likely be your best approach. Averaged out over the last 25 years, despite some trying times, DOW returns have paid around 9% or 10%. Here’s the difference: Over 25 years, a $10,000 investment at a 3% rate of return will grow to $26,000. A 9% return will give you $86,000.3. Understand that time is money and plan accordingly. To be successful at saving money, it must be approached as a long-term plan—get-rich-quick schemes rarely, if ever, work. Therefore, the earlier you start to save, the more money you will have down the road. In these scenarios, assume a 10% rate of return compounded annually:
Duane Duggan & Tammy MilanoThe Boulder Property Networkat RE/MAX of Boulder 2425 Canyon Blvd. Suite #110Boulder, CO 80302303-441-5611303-441-5612800-825-7000 firstname.lastname@example.org email@example.com
Radon Information | The Boulder Property Network | Getting the Highest Price | Free Home Valuation | COLLEGE STUDENT HOUSING! | INVESTOR Info | Need a REALTOR Referral? | Duane's Online Newsletter | RELOCATION Resources | Real Estate SEMINARS! | Search Local/Nationwide Listings | Duane's Timely Topics! | VIDEOS of Boulder County | CREDIT SCORE INFO | Business Referral Directory | Client Testimonials! | Why Buy Now? | CONTACT INFO | Meet Duane & Tammy | MORTGAGE CALCULATORS | Our Current Listings | Home Buyer Checklist | Real Estate Glossary | Home Page | Duane's BLOG !