7 Tips For Building Your Future Investments

Sat, Apr 26, 2014

Financial Advice, Investment

Building a future is a real concept that every responsible adult must consider. The sooner a person begins to think about this, the more options their future will have. With that being the case, there are many excellent ideas for building the investments for your future. The following are seven tips that can help you plan these investments.

Tip #1: Build a home…the smart way

Building a home gives you a lot of options. You control every angle of construction, including the floor space, fixtures and colors. But building a home should be done smartly. Don’t sink tons of money into areas of the home that will not give you a positive return on the investment. When building a home, consider spending a little extra making it more energy efficient. Before the construction of your home is started, it is imperative to invest in quality floor plans; whether luxury home plans or basic, investing the time needed in your floor plans is one of the most important steps. So whether you will live in your home for 40+ years or just a few years, these considerations will pay off in the long run.

Tip #2: Manage Your Risk

Unfortunately, we all run the risk of becoming permanently disabled, or dying prematurely. If you have a family, managing the risk of simply living and working is crucial for the future of your family. Speak with a financial adviser with a financial services company about managing your risks with disability and life insurance.

Tip #3: Put a certain amount of money into an IRA monthly

This is common advice, but it doesn’t make it any less valuable. Commit to any amount of money, and if possible have it electronically pulled out of your account monthly and into your IRA. Many companies will match individual contributions, so ask your human resources representative if there is a program like this at your place of employment.

Tip #4: Consider rental property

Perhaps not initially possible, but set a goal for when you’d like to be able to begin adding rental property to your portfolio. Realtors help investors and are knowledgeable about good deals and property that can pay for itself as a good long-term investment.

Tip #5: Think about an annuity

An annuity is kind of like purchasing a defined benefit retirement. (Where you’ll get a check every month regardless of how long you live.) Annuities are usually worth considering if you are in a profession that doesn’t offer a defined benefit retirement plan, which more and more are not.

Tip #6: Know and understand the retirement options from your main employer

Many people are not fully contributing to their retirement plan in a way that leaves money on the table that their employer would contribute. Understand what is available to you and don’t be afraid to ask questions and do long term projections. Small alterations to what you already have within your work can gain big money in your retirement.

Tip #7: Start a Roth IRA

A Roth IRA is a certain amount of money you can contribute each year after taxes that when you pull them out at age 59 1/2 or after, you’ll be able to do so tax free! This is a great retirement planning tool that you should talk to your financial adviser about.

So with that said, there are many other options to consider, but utilizing these tips can most definitely get you on the path to planning a solid financial future. The most important point to consider with any plan though, is to be consistent with implementation.

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