Three Safe Places to Invest Your Money for the Future

It’s important to prepare for your future.  After you retire, you need to have some sort of income that will allow you to pay your bills, buy groceries, and do all of the other things you may want to do.  Unfortunately, most people will not have enough money for retirement if they simply put away some cash every month into a savings account.  The interest rates on savings accounts will not allow your money to grow enough for the future.  This is where investing becomes very important. There are three excellent places to invest your money that will help you prepare for life after retirement.

A 401 K plan is the first place to invest your money.  A 401 K plan is an employment retirement investment plan that helps you save money for when you leave your place of employment.  The reason why 401 K plans make great investments is because the majority of employers will match a certain percentage of what you put in every month 100%.  For example, if your employer matches the first 5% you put into your 401 K, and the first 5% you put in is $100, then you will actually contribute $200 each month into your plan.  Most employers also then match a certain percentage of whatever you put in over the 5%.  This makes 401 K plans the safest place to put your retirement money because it offers an outstanding return on your investment.

Real estate is another excellent place to invest your money.  Purchasing several pieces of realty and then renting those properties out will guarantee you a good monthly income for the future.  The best part is that you can invest in property all over the United States, and then hire property managers to run the properties for you.  San Diego property management companies can collect rent for you, respond to problems, and practically run the piece of realty even if you don’t leave there. San Diego property management and management all over make it possible for you to invest in a wide variety of areas, which makes real estate investment safer.

The stock market is also a great place to invest your money.  The best way to invest in the stock market is to purchase diversified portfolios, such as index funds and mutual funds.  These stock market funds purchase one of every stock out there, which keeps your investment fairly safe from any crashes that may occur.  Instead of investing all of your money into one company, an index or mutual fund spreads out your investment safely.  Over the long haul, the stock market typically offers around a 12% or 13% return on your investment.

This entry was posted in Financial Education, Investing. Bookmark the permalink.