Wednesday, May 11, 2016
Money Myth: Investing Is Hard
There are lots of ways to invest and you don't even have to dress like this to do it. Your retirement plan, your basic savings account, and rainy day fund are all investments (but not your beanie babies).
Some of us are lucky enough to have jobs with a built-in 401k and a selection of paths for you to choose. Generally, you choose your risk tolerance and predicted outcome and they suggest a percentage of your pay. After you clean the pop you spit out off your screen, you make some adjustments.
If you don't have a job with a 401k, then you're on your own a little bit. You can open your own IRA (individual retirement account) quickly and easily online. There are excellent investment firms who will take over the same way they would for a large group of employees. Vanguard is consistently a favorite across the board. There is no account minimum and the site is easy to navigate.
Peer to peer lending is another investment opportunity that many overlook. P2P rates of return are between 5-9% which is waaaaaaaay higher than any savings account or CD. There is some nuance involved is spreading your risk over many loans in case some lenders default, but it's not difficult at all to learn.
Investing in yourself is always extremely worthwhile. If there is an opportunity at your job to become certified in a specialty or move up the ladder by earning education credits, you should totally do it! But only if you want to make more money. And really, isn't that why you're reading this?
There are many professionals who can guide you through the process of investing in any way you want to try. But! Just think about this: If you aren't paying the advisor, where are they getting their money? If they are being paid by a fund manager to push the product on investors, then they aren't really working with your best interests in mind. Like the old saying goes: if you aren't paying for it, then your are the product.
What are some ways you have invested your money? How did it work out?
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