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.
Model Investing Articles
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."
If you're going to sail into retirement with a nice fat portfolio and big sacks of money strewn across your deck, then you're going to have to deal with some ups and downs along the way. Financial markets are volatile by nature, and how you respond to these critical, anxiety-inducing periods can make the difference between a meager retirement, and a life of luxury.
Keeping our long-term goals in mind at all times requires an immense amount of effort. That's why we're often sidetracked by short-term wants and needs. Automating certain parts of the investment process is akin to putting guardrails around your financial ability to misbehave ... it'll keep you out of trouble and ensure you stay on track for long-term success.
When it comes to investing, the focus is usually on returns, or risk. But believe it or not, the small expenses that you incur along the way can actually have a huge impact on your overall net worth. While these expenses can't be avoided, they can certainly be minimized ... and doing so can save you a fortune.