Time to Step Up Your Wealth Building Strategy

If you’ve been shopping for a house or a car, things look rather awesome right now because rates are incredibly low. But, on the flip side if you’re working on building a nest egg for the future then those same low rates aren’t so exciting. In low-rate times like these, it’s time to put away kid-size savings tools like certificates and money markets and move up to more grownup investment strategies.  Because even when rates are down, you’ve still got to be saving.

Dumping slow performing accounts is going to cause you to step out of your risk comfort zone slightly. But you don’t have to risk it all at Vegas or with high stakes stocks.

You might be holding off in entering the world of investing if it conjures up images of you drinking massive cups of coffee while pouring over the stock market pages or screaming at brokers to buy and sell. While understanding how to read the stock market reports is useful, it’s not all there is to investing.

There are two ways to go; you can be an active investor (which might involve lots of coffee) or a passive investor. This just refers to the style of investor and is in no way a judgment on your character. Active investors are those that like to choose their own stocks. This may not be appropriate when you are just getting started. Passive investors let their holdings follow an index created by a third-party, like a mutual fund.

Getting started can seem confusing due to the overwhelming TMI. It helps to read as much as you can and don’t be embarrassed to start with basics like Investing for Dummies. If you are more of a kinetic learning you can meet with a financial planner. They’ll help you set your goals and choose investment vehicles to get you there. Once you’ve mastered this stage of investing you can always add strategies based on your risk tolerance and curiosity.

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