5 Safe And Reliable Investment Strategies
Investing is crucial for accruing long-term wealth. You need a common-sense plan to secure your future. No method is risk free, but some are more reliable than others. Here are five sound strategies for growing your investments.
Work with an Expert
It is okay to admit that you don’t understand everything about investing. It is a complicated field. Reaching out to a financial planner can help clear the air and set you on the path to a solid portfolio. Talk with someone who knows the stock market and can figure out what sectors are right for you. Come prepared with questions and goals. You want to make informed investment decisions that can be easily managed over time.
Go for Security Over Big Returns
Your portfolio should have a mix of riskiness, especially if you are not close to retirement age. This helps you build your returns. However, as you age, you should rely more on safe investments. There are many options to do this. Certificates of deposit, money market accounts, treasury securities, and municipal bonds are all less risky than their stock-market brethren.
Keep Your Stocks Boring
Speaking of stocks: avoid the lure of the Wall Street playground. With the glamorous image of the Lower Manhattan finance world, you may feel pressure to create an exciting portfolio to that matches that reputation. Don’t do this. The average person is better off keeping it simple. Look into index funds, which are designed to spread out your investments over a wide range of well-established companies. This limits your exposure and requires little maintenance.
Take Advantage of Employee Benefits
If you are lucky enough to have a 401(k) through your work, use it. This is free money. A 401(k) is a retirement plan that automatically deducts cash from your monthly paycheck and invests it in a fund. The longer you work, the more you can stow away. Many employers offer match programs, meaning they will match your contribution up to a certain amount. This means greater savings for you in the long run.
Don’t Forget Your Disposable Income
When you budget each month, take a look at your extra earnings. Do you have money that could be going toward investments? It is easy to forget about using your surplus this way because most of invest on autopilot with automatic deduction plans. But you can save even more by investing your spare change. There are even some apps based on this very idea.
If you aren’t investing yet, now is the time to start. The team at Citizens National Bank can help you manage your wealth and feel good about your finances. Contact us today to come up with a plan.
