The purpose of this blog is to offer free advice to younger people to become wealthy enough to support themselves after they stop working. The previous post covered some of the basics of investing for your retirement, and now I'd like to offer advice on where to invest and how.
Investing in your retirement can be overwhelming. You won't be able to use the money you invest for a very long time, but it will pay off big and give you financial freedom later in life when you stop working! Woohoo!
There are many places to invest, and all places have different offers. Here are some examples:
Vanguard - offers low fees. you can only use their funds
Fidelity - typically has higher fees with a a large variety of funds.
American Century
John Hancock
The list goes on. Take your pick.
I personally use Fidelity and American Century. All of these are pretty good.
The hardest part is really just getting started.
Step 1. Open a Roth IRA account - should not take long at all, and can be done entirely online.
Step 2. Set up an auto-invest on a monthly or bi-weekly basis. Later on why this is important.
Step 3. Select the fund you want to invest in.
Give one of these websites a call and they will be happy to help with these steps.
There are two reasons why auto-investing is great.
1. You don't even have to think about investing, you just do it. Before you know if you'll have $5000 in your retirement! You're on your way!
2. Auto-investing enables you to do dollar-cost-averaging. This is an investing method that means you invest the same amount of money no matter what the market does. buy high, buy low it doesn't matter. It takes the guess work out when to buy, and it is a low risk way to invest. Congrats you are an expert without even trying!
So, what are you waiting for!?
Next post will be on fund selection!
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