Managing your own retirement planning doesn't have to be that complicated. Learn how to get started and manage your money over time.
- I'm a big believer in managing your own investments,…and it doesn't have to be that complicated.…If you start with something super simple, get some practice,…before you know it, you'll be an active investor.…If you want to invest on your own…and want to start with something super simple,…start with a target date fund.…These are funds that are built to change their risk profile…over time, from being aggressive when you're young,…to being less risky as you near retirement.…These are simple, easy-to-understand funds,…which usually have low fees.…If you want something a little more complex,…look for an exchange-traded fund.…
These are low-cost funds that have bundles…of stocks or bonds.…Maybe start with two funds, a stock fund and a bond fund.…Make sure that each hold a large pool of securities…and have low fees.…If you're a conservative investor,…make sure you hold a larger proportion…of the less-risky bond fund.…If you're willing to take more risk,…hold a larger proportion of the riskier stock fund.…If you're not comfortable with the idea…
- Recognize the strategy used to combat inflation while still working.
- Determine whether investing in a company or working for a company is more profitable.
- Summarize the concept of Dollar-Cost Averaging.
- Identify the simplest, easiest investment opportunity available for young workers just starting to invest for retirement.
- Explain what “diversifying” means by using an example.
- Determine whether incurring debt can have a financial advantage.