Education Career Articles

Connect Facebook Connect Twitter Connect Google+ Connect Pinterest Connect Stumbleupon

Financial Advice in Saving Money and Building Wealth

Career News December 3, 2012

Are you interested in investing? Before you decide what to invest in, think about your financial goals. For example, if you have a goal of buying a house at the end of the year, choose an investment that would allow you to grow your money and do not penalize you for early withdraws or force you into long term commitments. Your age impacts how much you can invest, what to invest in, and how much will you allocate to each investment. Never invest money you may need soon, and save enough cash for emergency expenses before you begin to invest.

By investing your money in a variety of assets, you can protect your hard-earned money from potential financial risks due to a single investment (“putting all eggs in one basket.”) Below are some of the most common financial options to increase your wealth.

Individual Retirement Accounts (IRAs)

Individual Retirement Accounts allows you to save for retirement while legally deferring taxes until you are 59 ½ years old. Brokerage firms and banks manage IRAs and collect money to invest in stocks, mutual funds, certificate of deposit and other financial securities.

Roth IRAs help your financial contributions grow and withdraw tax free, but your contributions are not tax deductible. For Traditional IRAs, withdrawals are taxed as ordinary income and contributions can be tax deductible. Investors are penalized, if they decide to take money out before their IRAs account mature, so make sure you know your financial goals before choosing the IRAs you’d like to invest in.

401k

401k is a retirement savings account that allows you to contribute up to $17,000 a year. The savings account invests in mutual funds that are made of stocks or money market mutual funds that may have securities like a certificate of deposit. You can choose to invest money that has already been taxed or decide to invest pre-taxed money into a 401k plan, so it’s taxed when you withdraw it.

If your employer has a matching contribution 401k plan, take advantage of it! This arrangement can allow your investment to grow faster than if you were financing it on your own since your company matches the amount you invest in the plan. If you decide to take out money from your 401k plan before you turn 59 1/2 years old, you will pay penalty fees.

Bonds

Companies and government entities issue bonds or loans as a way to raise money. Investors can purchase bonds to receive a fixed interest rate payment along with their original investment amount. Bonds have maturity dates that can range from ninety days to many years. The federal government, local authorities, and public corporations can issue bonds to investors. The interest rate from bonds depends on its duration and the issuer’s credit.

Certificate of Deposit (CDs)

Certificate of Deposit is a saving certificate issued by a bank. During the duration of the CDs’ term, you are not allowed to withdraw the money depending on the financial firms. At the end of the term, you can collect the amount you invested and the interest earned based on its annual percentage yield. CDs are available for purchase based on an initial investment (normally starting at $1,000) from banking institutions and are federally insured. CDs can have a term length of one month to five years.

Dividend

Dividend is a form of payment for investors who own stocks and other investments. Corporate stocks, certificate of deposit, and mutual funds are examples of assets that give dividends to their owners. Dividends are normally paid out once a year due to the company achieving their profit goals and their increasing stock value. Dividends are a great way for you to get a portion of a company’s earnings.

Mutual Funds

Mutual funds are a convenient way to invest in multiple companies for significantly less than if they have purchased shares of different companies individually. There are many types of mutual funds available for investors to buy, ranging from index to sector funds. Index mutual funds allow you to buy shares of stock in an index (like the S&P 500) while sector mutual funds are a collection of companies in a certain sector.

How can you evaluate whether a mutual fund is a good investment or not? Examine the mutual fund’s performance against the S&P 500, and find out if it has a low expense ratio. If the fund doesn’t charge sales commissions for buying or selling the fund and has a low turnover, you should strongly consider adding it to your investment portfolio.

Searching Searching ...

Matching School Ads
5 Program(s) Found
  • Why Earn Your Degree from GCU?
  • Options: Choose from a variety of undergraduate and graduate degree programs in Business, Nursing, Psychology, Education & more!
  • Convenience: Complete courses online, on campus, or a combination of both!
  • Earlier Graduation: Our 4-credit courses allow you to complete your degree program in less time.
  • Transfer Friendly: We will request your transcripts, evaluate your graduate coursework, and determine your anticipated graduation date within 24 hours.
  • Quality: Grand Canyon University was founded in 1949 and is regionally accredited. Learn more today!
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
5 Program(s) Found
  • Online Bachelor's programs include BBA, Criminal Justice, Psychology, IT, Healthcare Management & Public Health
  • Over 115 years of delivering quality education and personalized attention to students
  • Provide a range of campus experiences and services online including advising, tutoring, student community, and career services
  • Give students and alumni access to career assistants who help with resumes, cover letters, job hunting, and more.
Good for Working Adults
  • Online Courses
  • Flexible Scheduling
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
  • Available business concentrations include Accounting, Economics, Marketing, and more.
  • Ranked among the Best Online MBA and Online Graduate Business Programs in 2016 by U.S. News & World Report.
  • Programmatic accreditation provided by the Accreditation Council for Business Schools and Programs (ACBSP).
  • Online Courses
5 Program(s) Found
  • Become the leader you know you can be @ Ashford University
  • Apply Now! Classes Start Every Tuesday!
  • Online Courses
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
South University , Glen Allen
  • Program options include Accounting, Business Administration, Leadership, and more.
  • Curriculum focuses on developing leadership, critical thinking, problem-solving, and communication skills.
  • Programmatic accreditation by the Accreditation Council for Business Schools and Programs (ACBSP) at select campuses.
  • Business programs are available at many of the 11 campus locations across the United States.
Good for Working Adults
  • Flexible Scheduling
  • Financial Aid
5 Program(s) Found
  • Designated as a 2015 Military Friendly® School by Victory Media, publishers of G.I. Jobs®.
  • Each program is designed to instill the knowledge, ethical values, and interpersonal skills of professional practice and to foster values of social responsibility.
  • Offers several flexible learning options, including a blended format that combines campus and online learning.
  • Several scholarship opportunities are available for students who qualify.
Good for Working Adults
  • Online Courses
  • Flexible Scheduling
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
  • Ranked among the top 20 Regional Universities in the West in 2015 by U.S. News & World Report.
  • Listed as one of America’s Best Colleges by Forbes Magazine in 2014.
  • More than 97% of tenure-track faculty holds a terminal degree in their field.
  • Student to faculty ratio of 15:1, and 47.5% of classes have fewer than 20 students.
  • Accredited by The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
  • Online Courses
  • Education Connection is a 100% Free College Matching Service used by 50,000 People Daily.
  • Get Matched to the Right Business Administration and Management, Accounting, Healthcare Administration, Marketing and Entrepreneurship Degree Program for YOU.
  • Affordable and Flexible Business Degree Programs from Top Colleges Across the Nation. Both Online And Campus!
  • Just Fill Out a Few Questions and You Can Find Your Perfect Business Degree Program Within Minutes.
  • Start Using our Fast, Free, and Easy Matching Service Right HERE and Right NOW!
  • Online Courses

Searching Searching ...

Matching School Ads
5 Program(s) Found
  • Ready to earn your business degree? If you identify with at least one of the statements below, GCU could be a good fit for you!
  • I have worked in the business field for a number of years and want to further my education in order to qualify for promotions, leadership positions, and salary increases.
  • I am graduating from high school and am interested in pursuing a career in a business field, but I first need the skills experience.
  • I am interested in a Bachelor's, Master's or Doctoral degree in my specialized business area of focus.
  • I want flexible course offerings, such as the option of 100% online, evening or campus classes.
  • I need a university that provides quality educational offerings through academic excellence and real-world relevance. Does this sound like you? Apply today!
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
5 Program(s) Found
  • Online bachelor's programs include BBA, Criminal Justice, IT, Healthcare Management, Pscyhology & Public Health
  • Over 115 years of delivering quality education and personalized attention to students
Good for Working Adults
  • Online Courses
  • Flexible Scheduling
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
  • Available business concentrations include Accounting, Economics, General Management, Marketing, and Human Resource Management.
  • Ranked among the Best Online MBA and Online Graduate Business Programs in 2016 by U.S. News & World Report.
  • Programmatic accreditation provided by the Accreditation Council for Business Schools and Programs (ACBSP).
  • Regionally accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
  • Online Courses
5 Program(s) Found
  • Designated as a 2015 Military Friendly® School by Victory Media, publishers of G.I. Jobs®.
  • Each program is designed to instill the knowledge, ethical values, and interpersonal skills of professional practice and to foster values of social responsibility.
  • Offers several flexible learning options, including a blended format that combines campus and online learning.
  • Several scholarship opportunities are available for students who qualify.
Good for Working Adults
  • Online Courses
  • Flexible Scheduling
  • Financial Aid
  • Transferable Credits
2 Program(s) Found
  • Ranked among the top 20 Regional Universities in the West in 2015 by U.S. News & World Report.
  • Listed as one of America’s Best Colleges by Forbes Magazine in 2014.
  • More than 97% of tenure-track faculty holds a terminal degree in their field.
  • Student to faculty ratio of 15:1, and 47.5% of classes have fewer than 20 students.
  • Accredited by The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
  • Online Courses

Login to your account

Can't remember your Password ?

Register for this site!