Everyone’s heard horror stories about people losing their life savings or retirement earnings from one bad investment. However, these stories aren’t as common as some believe. In fact, most people who plan wisely never fret over losing everything with one bad investment because they’ve diversified their portfolio and taken a couple of risks but kept the majority of investments on the safe side. If you’re looking into investments in Marysville, CA for retirement, college tuition, or just a nest egg for life, you need to speak with a financial advisor who can explain the pros and cons of available investments.
Consider the Reason for Your Investment
If you’re investing for retirement, you want to insure that there will be a substantial amount for you to live on once you can no longer work. If you have 20 to 30 years before retirement, you can consider stocks to help your money grow faster, although you won’t want to put all of your money into stocks. If you only have a few years left until retirement, stocks may not be the best choice. If you’re saving for your child’s college tuition, it may be better to use some of your company’s 401K savings or consider a specialized education savings plan that allows you to save money for college with tax breaks. When seeking advice on investments, Marysville, CA advisors will take into consideration the end use for the money to help you choose the best investments.
Individual Retirement Account
If you’d like a place to collect all of your investments, consider an IRA. An IRA allows you to essentially place your investments into that account and allow it to grow without being taxed. This is not the type of account for college tuition, since you will be taxed and penalized for taking the money out before retirement age, but it’s the perfect place to store investments meant to build money for retirement.
There are different types of IRAs available, so make sure you speak with a financial advisor before opening an IRA and adding investments. Marysville, CA residents who need to start saving soon will need to consider the best investments with the highest returns, without fearing that they’ll lose everything with one bad investment.
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