Investing in Your Goals

business man putting coin in piggy bank

Investing may seem like a complicated process requiring lots of time, energy and knowledge.  After all, looking at those acronyms, arrows, colors and numbers can be pretty intimidating for a new investor.  The good news is that there are plenty of ways to invest and be successful.  In fact, you’re already an investor, whether you know it or not.

Investing isn’t just about stocks and bonds, and buying and selling.  According to the Oxford English Dictionary, ‘to invest’ essentially means to give with the expectation of receiving: to put money into something and expect a profit, to devote something of yours for a worthwhile result.

You invest in your job, expecting a paycheck.  Now it’s time to invest your paycheck and expect results.

Here are few common objectives of investors and how we can help.

Invest in Your Future

As our money coaches like to say, it’s never too early or too late to start saving for retirement.  Everyone wants a better, brighter future, and investing through a company-sponsored retirement plan can ensure that you have financial reserves to make that happen.  Here are a couple different options for retirement investments:

  • Employer Sponsored Retirement Plans (E.g. 401(k), 403(b), Thrift Savings Plan, etc.) – Invest in your employer-sponsored retirement plan and you could get free money!  Many employers will match (up to a certain point) the amount an employee contributes.  Many plans also give employees an option between establishing a traditional versus a Roth retirement account. Talk to your Benefits Manager or HR Manager about the options available to you.
  • Individual Retirement Account (IRA) – If you don’t have a company-sponsored retirement plan, you can set up an IRA on your own. Keep in mind that the IRS limits how much you can annually contribute to an IRA, and you decide how you want to invest your IRA.  Your Money Coach can help you understand your investment options when it comes to your retirement accounts, and speak to any other retirement planning questions you might have.

Invest in Higher Education

One of the most important investment disciplines, for any investor to adopt, is saving for future goals as far in advance as possible.  If you start saving for retirement in your 20’s, you stand a much better chance of funding whatever retirement lifestyle you prefer.  In much the same manner, if you can start saving for college expenses when your son or daughter is born, you will be much more prepared for their college costs down the road.

Here are a few investment accounts that can help you reach your college savings goals:

  • 529 Plan – There are two types of 529 Plans: Savings and Prepaid Tuition.  Each state can offer a 529 Savings Plan that may or may not have incentives, and each state chooses the investment options within the plan. There are very generous contribution limits; investments grow tax-free, and disbursements are tax-free as long as proceeds are used to cover qualified education expenses.  Prepaid Tuition plans are different in that a parent purchases credits or semesters for future use at an eligible public university – but at today’s prices.
  • Coverdell Education Savings Account – The Coverdell uses a broader definition of qualified education expenses, but it also has a very low limit for annual contributions.
  • Roth IRA – You don’t have to wait until retirement to benefit from a Roth IRA.  Because you use post-tax dollars to contribute to a Roth account, you have flexibility with how you might use those investment dollars.  If you choose to use some portion of your contributions (not the earnings) for college expenses, you can do so; however, there are a few stipulations when implementing that particular strategy. Your Money Coach can explain the constraints and help you decide how best to move forward.

Want to know how much you should save for college and other life goals?  Check out our handy dandy calculators.

Educate Yourself on Investing

Investing your hard-earned savings to achieve your long-term goals doesn’t have to be a difficult, tedious process – especially when you have a Money Coach guiding you and keeping you accountable.  Money Coaches have years of experience, multiple credentials, and can talk about virtually any financial topic.  Want more information about 529 Plans or a Coverdell?  Talk with a Money Coach who is a College Planning & Student Loan Specialist.  Want help deciphering which IRA is best for you?  Work with a Money Coach who is a Retirement Specialist.

Together, you and your Money Coach will increase your financial know-how and create an action plan tailored to your lifestyle, so you feel more confident when it comes to investments and achieving your long-term goals.  Call 888-724-2326 to get started today.