Every time you turn around the news seems to be worse about our economy, taxes and jobs. What do you do? How do you keep your money safe and growing?
One of the best things you can do at this very moment is to start an emergency fund. Emergency funds act a as a great safety net in case of an unexpected emergency, such as a job loss or serious injury. Even if you can only save a little each month, it’s better than nothing – especially when you consider that 51% of Americans have less than three months’ worth of emergency savings.
Beyond a rainy day fund, there are several steps you should take to ensure you’re not just saving money, but also growing it. Today, we’ll explore ways you can begin investing for both your short- and long-term goals.
Prepare in the Present
If you have a savings account for emergency or an account to cover current needs, consider moving the funds from a regular old bank account to a Certificate of Deposit (CD) or in a money market account.
While traditional banks offer savings accounts with an average of just 0.13%, several CD interest rates have risen above 3.20% as of August 2022.
Both CDs and money market accounts are FDIC insured up to $250,000 and offer a secure place for money you may need in the next year or two.
Think Ahead
So you’re all set with your emergency fund, but what about investing for future needs, like retirement?
The easiest way to give yourself options and more control when you do retire is by investing in retirement accounts – and the earlier, the better.
Everyone who has wages can (and should) have a traditional IRA or Roth IRA. IRA stands for “individual retirement account.” Both regular IRAs and Roth IRAs offer tax advantages for your investments, so they’re a great way to get more bang for your buck.
Start Early
For those with five or more years to retirement, it’s best to spend some time looking closely at your retirement plan. Too many people wait until the last minute to plan out their retirement income and realize there were things they could have done to make it better.
Where investors get in trouble is trying to find that one investment that will make up for time lost, but there is no such thing as no risk, high return investments.
Listen to the marketing messages out there – they play on people’s insecurities and fears and end up costing many their hard earned money. Pay no mind to the noise, and remember that your overall risk is lower the younger you are – today is the best day to start.
It’s up to you to seek the information you need to have a powerful and effective plan. And when you’re ready to get your retirement plan in order, I’m here to help guide you along the way.
Invest with Confidence
Clarity Wealth is here to help you create a plan for the present and the future. Click here to connect with a team member today or schedule your complimentary consultation.
