Move 1: I Have Money -- Now What?
Stocks have been seen as a staple investment for decades due to their yearly ROI at 7%; however, they can be a risky investment when trying to buy and sell them in the short term. Bonds are a safer investment than stocks, but they also give less profits and less upside in the long term.
Real Estate is an investment that is looked over by many serious investors. The main reason why people don’t invest in real estate is because they don’t have enough capital, they think it’s hard work, or they are too old for it to pay off. Investing in apartment buildings or remodel projects can actually be one of the best investments out there because they can make you a lot of money in a relatively short amount of time. If you are investing in rental properties, you can hire a property manager who will do all of the heavy lifting. In that case, you could get a check in the mail each month and not have to lift a finger.
It’s crucial that financial investors put money towards their 401ks (especially if your employer matches your contributions) and IRAs. There are many differences between Roth IRA, Traditional IRA, and 401k accounts, so you must learn all of the differences if you want to save the most amount of money towards your retirement. Also, be wary of the rules and regulations of Social Security because the sooner you need to take it out, the less money you will get over time (there’s some truth to your retirement accounts and IRAs as well).