Saving for the future is one of those important, but not urgent things. The secret to building a strong financial future lies in our ability to create a plan, put it into action and then forget about it. Unless we make it a habit, it’s hard to stay consistent enough to build financial security.
When saving for the future, how and where you save or invest depends on your time horizon. If you're saving for the short term (three years or less), put your money in a safe, liquid account that you can access easily. A bank savings account is ideal, and there is little or no risk of loss. Have money automatically transferred from your checking account into this account earmarked especially for your purpose.
For longer term goals, multiple options are available. These options vary depending on when the money will be used — whether before or after retirement. The risks and potential costs differ from account to account, but there are several options to position your money for growth through investments. Of course, all investments include risk, including loss of principal, but lower risk options are available and can be explored with a financial professional. When saving for retirement, take advantage of any plans offered through your place of employment. This is an easy and good place to start saving, and some companies may offer a limited matching contribution.
Regardless of how long you have and the purpose for saving, start now, even if it is just a few dollars. Begin with an amount that you'll hardly miss from each paycheck. Setting up a small amount to be automatically invested is better than saving nothing at all. Procrastination does not work in the investing world, and it’s hard to make up for lost time.
Check out www.financialfreedomwmg.com/guided-wealth-advising for a “just getting started” investing option!
Julia Carlson is a registered principal with, and securities and advisory services are offered through LPL Financial, a registered investment advisor, member FINRA/SIPC. Information in this column is for general purposes only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision. No strategy assures success or protects against loss.
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