Lately I have been thinking a lot about investing and saving now for retirement. I have a few decades until that time comes, but I figure it’s never too early to start. In a finance seminar I went to about a year ago, the speaker told us that if we all opened an IRA or Roth IRA when we were 22 or 23 and invested just a few hundred dollars a year, it would be a million dollars by the time we turned 75. That surprised me, how just a few thousand dollars over a lifetime can turn into something huge because of investments.
I wish I knew more about the financial industry, about stocks and investing, but I just don’t. Even if I tried to learn more, I am terrible with numbers so I am not sure how far I would get. But I think it’s important nonetheless.
There are thousands of companies dedicated to taking your money and turning it into something (hopefully) much larger. There are companies who invest in businesses and emerging markets, and others who strictly work with portfolio construction and one-on-one regular people.
Some financial companies focus on long-term monetary stability while others specialize in short-term investment opportunities. I am young so I don’t have a million bills to pay yet, which is why I am more interested in long-term investment options. I figure that now is a good time to open an IRA or begin to invest, while I have a little extra money to do it. I don’t know when I will get that chance again.
Because it’s my hard-earned money I want to make sure I find a company and a portfolio manager I can trust. They’re going to have my money for the next 40 or so years, so I better make the right decision the first time. I have done some research and asked around people I know who have alternative investments and accounts.
I started with all the typical questions. What’s the best way to invest? What is the difference between an IRA and a Roth IRA? With what types of stocks should I wager my money? What is tatctical asset allocation? What are the benefits of investing now vs. later? If I get a job that also invests in my retirement can I have separate accounts?
The list goes on. I did some research, talked to some people who have their own trusted advisor and company they work through. The majority of people my age haven’t even begun to worry about this stuff yet, so I had to go to the experts: my parents, grandparents, and teachers who have already done the research and tried it out. Managed futures and retirement aren’t exactly on the minds of recent college grads and workforce first-timers, but I want to be prepared. I am interested in what I can get out of what I make, and give the world of investments a shot. Because I don’t know anything about it other than what I have researched so far, I’m going to a financial company that knows what they are doing.
I just have a couple more financial groups to meet with to see what they can do for me. I have learned that if I go in with questions and somewhat know what I am talking about, they take me much more seriously. Maybe I’ll get a better deal because of my research.
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