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Home > Planning For... > Your Investments
Saving for your future is something that is appropriate for everyone. The first step is to initiate and maintain a savings habit that puts some money away with each paycheck. That can be in a workplace retirement plan or a systematic investment plan into individual investments. The next step is to determine exactly how that money should be invested. An investment strategy can help put you on the right track. Here are some of the most important factors to consider:
How much to save
Americans, on average, save less than 5% of their income. That's one of the lowest savings rates in the world. How much to save depends on your age, but if possible, you should put away at least 10% of your income for the future. If you happen to receive a lump sum of money (tax refund, award, beneficiary of a will), don't feel obligated to spend it all. Try to put at least some of it to work in your investment portfolio.
How to invest it
You have literally thousands of choices. The answer to this question is complex and relies on a variety of factors, including:
- The amount of time you can let your money grow
- The goals you are trying to achieve
- Your views on investment risk.
Answers to these questions will go a long way toward helping you identify specific types of investments (growth stocks, government bonds, etc.) that should be included in your portfolio.
Staying diversified
Successful investors typically maintain a well-diversified portfolio. This helps to limit short-term volatility without reducing the long-term potential of an investment plan.
Most important — get your money invested. History shows that the longer money
can work for you, the more wealth you can accumulate.
Content is for informational purposes only and may not accurately reflect your specific situation. Information is not intended to provide financial, legal, tax, or accounting advice. You should consult a qualified advisor for advice specific to your own circumstances.
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