How to Invest in Tomorrow
- 1). Set up a retirement account. Open a Roth Individual Retirement Account, for example, and contribute a maximum of $5,000 per year. Roth IRAs do not have tax penalties when withdrawing funds. Start a 401(k) retirement plan and have part of your yearly salary -- up to $16,500 per year -- invested in the fund. Choose an IRA or 401(k) with an interest rate that will earn you additional income the longer you invest.
- 2). Pay one additional mortgage payment per year. Paying an extra monthly payment can reduce a 30-year mortgage by 50 percent -- so you are only paying for 15 or 16 years. Mortgage payments are often the most expensive bill a person must navigate. Pay now and save later.
- 3). Buy life insurance. Consider term life insurance options -- coverage for 20 or 25 year terms, for example -- to protect your family in the event of your unexpected death. Term coverage may require a monthly payment of up to $100, but the result may be a $1 million payout to a spouse and family members in the event of an untimely death. Purchasing term life insurance is a wise way to invest in the future of your family and protect them from worrying about a shaky financial outlook.
- 4). Work with a skilled investment broker. Ask the broker for input and strategies for the types of investments that may be right for your financial situation and future needs. Open up a dialogue with your adviser about portfolio and project packages including mutual funds, the stock market, real estate and investments in gold.
- 5). Invest in businesses you believe in and trust. Follow your instincts when investing. Avoid simply taking anyone's word for it -- professional adviser or otherwise -- that one investment is sensible over another. Research the companies and markets in which you are interested. Study readily available information, including business executives, boards of directors, government contracts, quarterly profits and long-term goals.
