Sell your home in record time with these simple tips.
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Remember the first time you drove a car? There was no real way to prepare. You just had to jump in and learn how to manage all those moving parts as you went.
Investing is like that. You can't know what it's like until you do it. But you didn't start driving without a few driving tips from dad. So you shouldn't start investing without some idea of what to expect.
From Uncle Sam
Traditional IRAs and employer-sponsored plans like 401(k)s reduce your taxable income in different ways. Your 401(k) is funded with pre-tax money, which means if you gross $1,000 a week and contribute $100 to your 401(k), you'll only be taxed on $900. Check your federal income tax withholding to make sure you're not paying too much income tax on your "new" income.
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Contributions to a traditional IRA are tax-deductible. Ask your tax advisor if you're eligible.
You may be surprised to find that investing is full of emotional highs and lows. But you can't let those emotions make your investing decisions.
Recently, we saw how fear ruled investors who first pulled their money out of their investments as the stock market slid in 2008, and then, were too cautious to invest again as the market recovered. On the other hand, in the boom markets of the 1990s, some investors were so enthusiastic that they mortgaged their homes to have more cash to invest.
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To build wealth through investing, you must commit to investing systematically during the booms and the busts. And, if you invest the way Dave recommends by being debt-free with an emergency fund, you won't be as tempted to jump off the investment roller coaster when the market plunges—and you'll really enjoy the ride when it goes up!
From Your Advisor
Your advisor's job is to explain your investing options and answer all your questions so you can make your own investing decisions. It is not his job to make your decisions for you.
But, that doesn't mean your advisor will always agree with you. Research shows that most mutual fund investors miss out on 38% of their investments' growth because they buy and sell their mutual funds at the wrong times. Your investing advisor will help you avoid that mistake by reminding you to hold your mutual funds long term.
Get Professional Investing Advice
Dave's investing Endorsed Local Providers can explain what else to expect and show you how to invest the way Dave teaches. You can trust your ELP to give you the same great advice Dave would. Contact your ELP today!