Millennials- Investment

Everyone knows that saving money can be a challenge when there seems to be an endless stream of monthly expenses. One of the most basic tenants of sound investing involves the simple habit of “paying yourself first.” One way to create this habit is to start a tax advantaged retirement savings account with your employer. Contributions to these types of accounts are made “off the top” before you receive your paycheck giving you the ability to pay yourself first. Then, you can increase your contribution annually, in small increments, continually training your budget to pay you first. A bonus of the strategy is found in the concept of dollar cost averaging where you purchase shares of your investment over a period of time in hopes of driving down your average purchase price. Contact us to start paying yourself first today.

The most appropriate investment asset allocation will depend on an individual’s situation. Among other considerations, it may be determined by two broad factors. Time: Investors with longer time frames may be comfortable with investments that offer higher potential returns but also carry higher risk. A longer time frame may allow individuals to ride out the market’s ups and downs. An investor with a shorter time frame may need to consider market volatility when evaluating various investment choices. Risk Tolerance: An investor with high risk tolerance may be more willing to accept greater market volatility in the pursuit of potential returns. An investor with a low risk tolerance may be willing to forego some potential return in favor of investments that attempt to limit price swings. Asset allocation is a critical building block when creating a portfolio. Having a strong knowledge of the concept may help as you consider which investments may be appropriate for your long-term strategy. Contact us today to get started on your customized retirement portfolio.

Bursting the Bubble Tulips were the first, but won’t be the last. What forms a “bubble” and what causes them to burst?

The Business Cycle How will you weather the ups and downs of the business cycle?

The Rule of 72 Do you know how long it may take for your investments to double in value? The Rule of 72 is a quick way to figure it out.