Investing in the future is far different than simply saving money. Many articles written today will tell you how our most recent college graduates are tending to save rather than invest. It is well understood that the most recent downturn the the American economy is responsible for this reaction, but it is bad direction to simply put money into a savings account. The reason being is that the yield is far below what you would receive from simple investing.
Lets take a look at a simple investing idea that will allow you to save for the future, and create long term wealth that will create freedom and stability in today’s ever-changing world.
Mutual funds are great for the average investor. They require little to no knowledge of what will happen in the market, nor do they require expertise in fundamental or technical analysis. It is simply a sit and hold type of investment. Now, there are many types of funds out there, and while it is easy to get lost in the mix – lets focus on one idea – saving for 10 years.
It would be in the best interest of the portfolio to look into large cap or large value funds. They typically hold some of the biggest in the market, and will allow you to own partial shares in some of the biggest companies in America, and across the globe. They are managed for you, so you don’t need to worry about buying and selling shares, and it allows dividends to be collected, which routinely outproduce a high-yield savings account.
They pay a short-term and long-term dividend in most cases, and will allow your money to work for you, rather than you working for your money. They are also investments that may gain over time, and will increase your wealth. Before you invest in a mutual fund – look into it’s holdings, and make sure that you agree with what the company has in its portfolio. If you believe that they stand a good chance of making money then you may be in a position to make a sound investment.
Plan on holding the mutual fund for over a year, and in that time continue to fund it with periodic contributions. In the 12 month span, you will be amazed with your accrual in your account.
If you have any questions, please feel free to reach out to me directly at – email@example.com