We all have a natural inclination to want the stock market to move higher. But counterintuitively, for the vast majority of investors, lower market prices will actually lead to higher account balances down the road. There are of course some exceptions, but more than likely you're about to find out why you've been spending your whole life hoping for the wrong outcome in the stock market.
Article Category: Retirement
You've heard of the gender pay gap, but are you aware of the gender investing gap? Put simply, women do not invest to the same extent that men do. As a result, when retirement rolls around, women end up with only two-thirds as much money in their portfolios. This is a BIG problem, especially when you consider that women in the U.S. tend to live on average 6.5 years longer than their male counterparts.
As you begin to set aside money for retirement, one of the first and most critical decisions you'll face is what type of account to put that money in. Should you contribute to your 401(k) first? Or is paying down debt a better idea? What about an IRA or a 529 plan? Should you be contributing to those as well? And what do mason jars and your mattress have to do with any of this? These are the types of questions we'll attempt to answer as we explore the most effective way to save for retirement.
Have you ever wanted to be a business owner? Well, congrats ... you already are. The minute you have even a few thousand dollars to your name, you're officially a professional money manager running your own investment firm. Of course, you probably don't see it that way, but that's because you haven't been enlightened yet. No one has ever spelled it out for you before. Well ... it's time to fix that.
When you begin to save for retirement, the easiest way to get started is to enroll in your employer-sponsored retirement plan (401(k), 403(b), TSP, etc.). The next step (or the first step, for those who don't have access to an employer-sponsored plan) is generally to open an Individual Retirement Account (IRA). These types of accounts provide great tax advantages, and come in two types: "Roth" and "Traditional."