If you’re an investor in your 20s or 30s, you may not feel as flush as your parents, but you have plenty of time to catch up. The trick to becoming financially secure is to become a smart consumer and get an early start investing. Here are some ways to get you started:
Do you know how much taxes are eroding your investment returns? It could be more than you think. Studies by the Vanguard Group suggest that taxes can erode the net returns of domestic stock funds by as much as two percent annually. That might not sound like much, but this small percentage can represent a huge hit.
If you invest in index mutual funds or ETFs, the best that you can expect to capture are average market returns.
If this doesn’t get you initially excited, it’s no wonder. Average usually doesn’t sell. No one hunts for an average accountant or an average physician.
Nobody gets excited about average test scores or the prospects of eating at an average restaurant.
Even if you agree with us that index or passively managed funds are an excellent way to invest, you might wonder if the best strategy would be to hedge your bet and invest in index funds and actively managed funds.
This is the time of year when new college graduates start focusing on the rest of their lives. One of the best things that they can do as they start their careers is to establish excellent financial habits. Here are six tips that can get them headed down the right path: