![]() ![]() ![]() ![]() It's that important.Īnd, $1,000 might make a big dent in your debt. This is also why some financial gurus recommend paying down non-mortgage debt before investing for retirement. What you're really investing into is not having to pay lots and lots of interest. That's what makes paying down debt such a great investment idea. With credit cards, you might pay in the double digits. The only difference is that holding onto debt is often more costly than investments are profitable.įor example, you might expect to achieve a 7% or 8% return in the stock market. Having debt is like the opposite of having an investment. You might find this investment strategy surprising. You need all the time in the markets you can get. If you're starting when your children are older, you have even less time. The time horizon for college is usually short: a maximum of 18 years. Tip: If you're going to contribute to your children's college education, it's wise to start as early as possible. Making a decision to start saving for college today will make it much easier psychologically to invest tomorrow. $1,000 is a great start in one of these plans, and depositing the money in such a plan will help you get the technical details of the account worked out so you can continue to contribute.įor example, you might be held back by the fear of the unknown. These plans are sponsored by the states, so be sure to check out your state's 529 college savings plan and see if it makes sense for you. If you want your kids to go to college, and you aren't rolling in the dough right now, you should probably think about saving for their college education.Ī 529 college savings plan is a great choice, as it has tax advantages that encourage individuals to save for college. Forbes contributor, Mike Patton, points out that college tuition has been increasing by a whopping 5.2% for the last 20 years. Can you guess what it is? College is expensive and is showing no sign of slowing down. One path to success is college.īut, there's a problem. Invest in your kids' college education.Įvery parent wants their kids to be successful in life. If you have your strategy largely in place, try out a robo-advisor. Tip: If you're ready to get a comprehensive, in-depth financial plan in place, you'd probably do better to sit down with a financial planner. It's set-it-and-almost-forget-it investing! Overall, he expects they will improve over an extended period of time. This view is reflected in Betterment's software. Jon believes the markets represent the success of the global economy. I interviewed Jon Stein, CEO of Betterment, a popular robo-advisor which grew from nothing to a $16+ billion dollar investment company in just under eleven years. Robo-advisors make investment management available to the masses, since they typically have very low (or nonexistent) account minimums.Īdditionally, many robo-advisors have slick user interfaces to help you get relevant information about your investment performance, holdings, and more in a snap. For example, when signing up for such a service, you might take a questionnaire to determine your risk tolerance level or investment goals. Robo-advisors are investment companies who create automated software designed to manage portfolios based on certain criteria. ![]() If you're not very skilled at investing on your own and you're hesitant to loan money out to particular people online, you might consider hiring a robo-advisor. 3. Have a popular robo-advisor manage your money. Some notes are riskier to invest in than others, and thankfully, you can see this information at Lending Club's website. Tip: Like any investment, make sure you choose notes that reflect your tolerance for risk. Alternatively, you can manually invest by browsing available loans and picking the ones you like. Lending Club is one such peer-to-peer lending service I tried out, and I found it to be very easy to use and reliable (see my Lending Club review).Īs an investor with Lending Club, you can invest automatically using investment criteria. Peer-to-peer lending is the practice of lending to borrowers through an online service whose goal it is to bring borrowers and lenders together. If you want to invest into the lives of others and earn some interest, there's a new craze that's both exciting and reasonable: peer-to-peer lending. 2. Lend to those in need and earn some interest. ETFs are known for their lows costs and diversification benefits. Tip: If you're going to be picking investments yourself using your $1,000, you might want to pick out some exchange-traded funds ( ETFs). ![]()
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