How Moms Can Get Started with Investing

How Moms Can Get Started with Investing from North Carolina Lifestyle Blogger Adventures of Frugal Mom

Saving money and keeping a budget is important, but building wealth is equally important. Investing is a great way to do this, but many moms are intimidated by the idea of it. Contrary to what you may have heard, you don’t necessarily need a lot of money to get started with investing. And if you are like most people, you aren’t sure where to begin to invest your money, luckily, there are places like SoFi that can help with that.

Take Care of Debt First and Build an Emergency Fund

There are two important things you need to do before you start investing: pay off debt and start an emergency fund. You don’t necessarily need to pay off your mortgage, but if you have a lingering credit card and student loan debt, tackle these first before you start putting your money into investments.

You may earn 3% on your investments, but if you’re paying 7% on debts, you won’t be accumulating any wealth.

While you’re paying off debt – or after – accumulate an emergency fund. Start with a $1,000 emergency fund. After you’ve paid off debt, you can work toward a fund of 3 or 6 months of income.

Start with Your Retirement

Once you’ve paid off debt and built up an emergency fund, you can start focusing on your retirement. This is a sensible place to start your investing journey.

There are a few ways to start investing in your retirement. Your employer likely offers retirement options. You can also think about starting an ira. There are a few options for those:

Gold IRA

If you want to think slightly out of the box with your retirement, then you may want to look into investing in gold rather than the regular ways that are normally provided for retirees.
 
Gold IRAs, also known as precious metals IRAs, are individual retirement accounts with actual gold or other precious metals. It is the same as a traditional IRA, however, gold replaces paper assets. Websites such as https://quadrafnx.com can help inform people about gold IRAs and what the next steps are when it comes to investing in it.

Traditional IRA

Traditional IRAs are tax-deferred retirement accounts, which means that you won’t pay taxes on the money you put into these accounts now.

Taxes are only incurred when you withdraw the money in your retirement.

As of 2018, the maximum IRA contribution is $5,500 per year.

Roth IRA

A Roth IRA account offers attractive tax benefits. Instead of deferring taxes, like you would with a traditional IRA, you pay taxes now and avoid having to pay in the future.

Like with a traditional IRA, the maximum contribution limit for a Roth IRA is $5,500 per year.

SEP IRA

If you’re self-employed, a SEP IRA may be a good fit for you. SEP stands for Simplified Employee Pension. Any business owner with one or more employees or with freelance income can open up a SEP IRA.

Contributions, which are tax-deductible, will be put into a traditional IRA. And just like with a traditional IRA, the money is not taxable until it is withdrawn.

One great benefit of a SEP IRA is that you can contribute up to 25% of your income, or $53,000, whichever is less.

IPOs

When a private company has just started to sell shares to the public, it gives you the opportunity to invest in an Initial Public Offering (or IPO for short). This marks the company’s transition from a private company to a public company, but it’s important to do your research before investing in an IPO. Many young companies that open an IPO soon go bust, so you need to be sure that the company you’re investing in is built on solid ground. If you’re interested in an IPO, take a look at the AAIG IPO. AAIG was established in 2009, so it’s had time to prove its resilience in the 14 years it’s been in operation.

Stocks and Index Funds

Stocks and index funds can add to your wealth and retirement. Index funds are often touted as a safer investment option because your exposure is limited, and they offer a great return.

Investing in individual stocks is also a smart option, and there are many ways to get started without having to invest large sums of money. Some investing platforms allow you to buy partial stock and even set up automatic monthly contributions.

Many stock investment platforms are user-friendly and provide you with information that makes it easier to make safe bets when choosing stocks.

Similar Posts:

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.