Even though some of the assets might be the same, investing for yourself is different from retirement savings. Learn how and why to lock your retirement money away.
- Saving money for retirement is super important,…'cause you need to build-up as much savings as possible…so you don't run out of money during retirement.…But at the same time while you're saving for retirement…you'll also need to save for other things,…important things like buying a house…or putting your kids through college,…buying a car, furniture, vacations, electronics…so you need to think of your long-term savings…as two completely different pots of money.…One's for retirement and one is for your working-life needs.…In fact, you need to keep those two pots of money…in two separate places.…
For retirement savings, most governments have allowed…the finance industry to create accounts…to help you grow your money without being hit by taxes.…They have fancy names like IRA,…401K, RRSP and superannuation.…Although the rules in each country differ,…the basic assumption's the same.…They are tax sheltered accounts that let your money grow…as quickly as possible but because these accounts…are geared for retirement,…
- 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.