- To achieve financial goals (e.g., a new car and the purchase of a home)
- To increase current income (from dividends, interest, and capital gains)
- To achieve financial independence and have funds available for retirement
Wednesday, August 9, 2017
Investing For Your Future
Saving is typically done for emergency funds and short-term goals and usually has a known, but generally low, rate of return. Investing is done for long-term goals and capital appreciation (growth) of money over time and has a higher potential rate of return. What saving and investing both have in common is that savers/investors must “live below their means” and set money aside today to have available in the future.
People invest money for a variety of reasons including:
There is no such thing as a “perfect” (risk-free, tax-free, high return) investment. All investments involve trade-offs and some type of risk. In addition, investors cannot expect to have characteristics of savings (e.g., predictable returns) in an investment product. However, if investors teach themselves to recognize and evaluate investment risks, they will be better able to balance their investment objectives and risk tolerance.
Need more information about investing? Check out the Cooperative Extension basic investing home study course, Investing For Your Future.
The Financial Planning Association of New Jersey (FPA-NJ) recently held a seminar on the Tax Cuts and Jobs Act of 2017 (TCJA) and associ...
As a homeowner in a high-tax state (New Jersey), I took a very personal interest in this topic. A question from a colleague last week led ...
Credit Freeze Information in the Wake of the Equifax Hack I guess I touched a nerve with my post about the Equifax hack last week. Over 6...
Lack of financial savvy can put women (and men) at a substantial disadvantage. Statistics say it is only a matter of time before 85% to ...