One of the best ways to save for the future is to invest your money in the right products. Putting your extra money somewhere where it has a chance to grow in value is a good move. Any wrong move will only make you lose your hard earned savings.
What you should do then is to be extra careful in choosing investment products. Make sure it’s within your budget and not something that many people are investing in at the moment. Following the trend is never a good idea, according to the experts. It’s what they call “portfolio envy” which prompts people to be envious when they see the others around them making money. But instead of having this attitude, you should rather focus on your individual goals and not follow those of your neighbor’s actions.
Another move you should take is to make regular investments at specific intervals. While you are still earning a regular income, it would be ideal to consider the so-called target date funds. This type of funds usually adjusts its mix of investments according to your anticipated retirement date.
Reconsider your decision of investing in bonds. Putting your money in treasury bonds may be seen as a safe move but it isn’t always so. You should know that when interest rates go up or the fiscal situation in the U.S. deteriorates, for instance, you could lose money from your treasury bonds notably when you’ve invested on the long-term ones.
A good alternative is to continue to invest in stocks especially if you’re still young. If you want to go with bonds, make sure to choose the short-term ones only. Experts recommend the treasury securities which are inflation protected than the 30-year treasury bonds.
A word of caution, though. If you will be using your money in the coming years, it’s not ideal to invest in the stock market. It would be better that you put your money in an online bank savings account that provides a high interest.
In addition, be responsible enough and do your research in the investment products you buy. Don’t rely too much on a stockbroker who may just be making money from you and not giving you the right advice. There have been many cases of stockbrokers who just pushed their clients to invest in the more expensive products with the end goal of earning higher commissions. You would benefit more if you get a financial planner that charges you a set fee in exchange for his advice on investments.
Your retirement account is also a good investment opportunity. But don’t assume too much when it comes to the amount you’ll get for retirement. You have to adjust your expectations if possible.
Finally, your home can be a good investment as well but don’t just expect too much. You can beautify your home if you want to add value to the property but don’t think that you can sell it right away in the event the need arises. The housing market has its ups and downs so again, proper research is necessary before making any decisions.