Education
Investing
The information provided here is for general educational purposes only and is based on common financial assumptions and estimates. It should not be considered personalized financial advice. Before making decisions about investments, retirement planning, taxes, insurance, or business strategies, consult with a qualified financial advisor, tax professional, or other licensed expert who can review your specific situation.
Investing Basics
What are some potential ways to start investing?
Many investors begin saving for retirement through accounts such as 401(k)s, IRAs, or Roth IRAs, which may offer tax advantages depending on individual circumstances. Beyond retirement accounts, ETFs and index funds that track broad market indexes like the S&P 500 are common options for investors seeking long-term growth and diversification.
What’s the difference between stocks, bonds, and ETFs?
Stocks give ownership in a company, bonds provide fixed interest income, and ETFs combine many investments into one fund. Many investors use a mix of stocks, bonds, REITs, and mutual funds for diversification. A financial advisor can help you evaluate these options and assess which approaches may align with your individual circumstances and retirement objectives.
Should I invest in mutual funds or ETFs?
ETFs typically have lower fees and trade throughout the day like stocks, while mutual funds may offer professional management and trade at end-of-day prices. Both can hold a mix of investments such as stocks, bonds, or REITs. Many investors use ETFs or mutual funds as part of their long-term portfolios, depending on their goals and preferences.
Retirement-Focused Investing
Is a Roth IRA better than a traditional IRA?
A Roth IRA allows tax-free withdrawals in retirement, while a traditional IRA gives an upfront tax deduction. Some high-income earners use a ‘backdoor Roth IRA’ strategy to access Roth benefits, though this approach involves specific tax considerations and may not be suitable for everyone.
How should I invest inside my 401(k)?
Many investors seek diversification by holding a mix of U.S. stocks, international stocks, and bonds. Some professionals use target-date funds or S&P 500 index funds for simplicity, while others may add REITs or bond funds to seek balance. A dedicated financial advisor can help you evaluate these options and assess which approaches may align with your individual circumstances and retirement objectives.
What is the 4% rule for retirement investing?
The 4% rule suggests withdrawing 4% of your investment portfolio each year from accounts like 401(k), IRA, Roth IRA, or annuities as a general guideline to help estimate how long retirement savings might last.
Advanced Investing
Is real estate a reliable investment?
Many investors seek to build wealth through rental properties, REITs, or real estate crowdfunding platforms. Real estate investments may offer potential cash flow, tax advantages, and long-term growth opportunities, though they also carry risks such as market volatility, illiquidity, and property management challenges.
Should I invest in individual stocks or index funds?
Individual stocks may offer higher potential returns but also carry greater risk. Index funds and ETFs spread investments across many companies, which may reduce—but not eliminate—risk while aiming to track overall market performance. Many long-term investors use index funds or ETFs to gain diversified exposure. A financial advisor can help guide you through these options and assess which investments may align with your individual circumstances and retirement objectives.
Are annuities a common investment for retirement?
Fixed annuities can provide a guaranteed income stream backed by the issuing insurance company, while variable annuities offer market-based growth potential but carry more risk and fees. Some investors use annuities alongside other retirement accounts, such as 401(k)s or IRAs, to help create a more predictable income stream.
