Easiest Way to Start Investing

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If you are new to investing and are not sure where to begin, there is an easy way to start! Talk to your employer about joining their 401K plan. Most employers’ offer 401K plans and it is an easy way to start investing in your future!

A 401K plan is an account that holds investments such as stocks, bonds and mutual funds. This is an easy way to start investing because your employer will deduct funds from your paycheck automatically to invest for you. This way you are investing without having to find the extra money or do anything yourself!

401K plans are long term investments allowing you to build a retirement fund for yourself. It is shocking how many employees do not sign up for a 401K when offered to them. Not only is it typically low risk, but the money is deducted from your paycheck before taxes, so it is a real savings for you.

Most companies even offer to match up to a certain percentage of your contributions. Understand what this means to your financial future, your employer is going to actually GIVE you money! Typically if you invest 6% of your paycheck your employer will put an additional 3% in your 401K of their money! That may not seem like much, but when you add the interest that is accruing to that 3%, it becomes serious money quickly!

If you are in your 20’s or 30’s and just start a 401K you can easily expect to retire with more than enough money when you are ready! This is probably the easiest and safest way to invest in your future today.

Keep in mind that you do not pay taxes on the money you contribute or on the money your employer contributes until you retire and start withdrawing funds. This allows you many years of growing your wealth without having to pay Uncle Sam a penny of it. A pretty good incentive to start a 401K!

You can typically get as involved as you would like in how your money is invested using a 401K They are set up to allow you to be as hands on, or hands off as you prefer. They also allow you to choose higher risk investments that have a higher rate of return. Or you can choose the low risk investments that still have decent returns. There are experts handling your 401K, so you can certainly just keep contributing through automatic payroll deduction and allow the experts to make the investment choices for you.

Simply contact your employer and ask to talk to the person that administers your 401K. You can get started easily enough and then you can choose whether to let the experts take it from there or get involved and choose where your money goes.

Even in these economically tough times, employers are still contributing to 401K accounts, take advantage of this free money today! You will be glad you did when retirement times comes and you find that you have more than enough money to continue living in the standard you have become accustomed. Don’t count on Social Security, it may not be there! Take control of your financial future today!