Picking Your Own Stocks

So, you’re thinking about picking your own stocks and wondering whether or not this is a smart move. Well, sorry to break it to you, but, more often than not, this definitely isn’t the smartest choice you could make.

See, the thing about investing, when you do it without a lot of “know-how,” is that you’re taking a huge chance. Basically, you’re gambling. You think you can do better than the market, so you try your luck, and, sadly, more often than not, just as is the case with gambling, you lose. 

A much smarter route to take is to leave the investing up to professionals, people who know the investing market inside and out and who can make informed decisions about the best possible investment ventures for your money and goals.

In addition to getting help from qualified investment experts, you should also take less risky measures to earn money from your money. Even investment professionals can’t get rid of ALL of the risk, which is why your investment portfolio should be made up of other risk-free or low-risk investments, such as target-date funds, high-interest savings accounts, and other smart saving and investing options.

The bottom line is that picking your own stocks is definitely not smart, unless you’re some kind of financial guru, so get help and learn how to build a diverse portfolio that will make you money with minimal risk.

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Regular 401K Contributions Equal Happy Retirement

We all get older, like it or not. And most of us plan to retire once we reach our golden years. Unfortunately, however, retirement isn’t something that just magically happens and that is all taken care of for us. No, it’s our job to plan for our own retirements, and as such, our planning or lack thereof plays a major role in how much enjoyment we are able to get from retirement. One of the most common ways to plan for retirement is by opening and regularly contributing to a 401(k). 

The best course of action is to open these plans early in life and to contribute as often as possible. This leads many people to jump on the “automatic withdrawal” bandwagon, in which employers regularly take funds from the 401(k) holder’s paycheck, deposit them into the plan, and then match the payment.  Though it can be daunting to release control of your paycheck to someone else, this is actually a win-win type of deal.

Sure, it may not be fun to have some of your money “disappear” from your monthly paycheck, but remember, it’s not actually disappearing. Instead, it’s being put aside for the “future you.” That’s an important distinction to make and something to remind yourself of when you’re feeling glum about all the money you don’t have right this second.

Having that 401(k) growing steadily is a fairly good indicator that you are going to be able to have a nice retirement. However, there’s certainly nothing wrong with putting money in other places as well. An SEP IRA is a nice addition to a 401(k). You don’t have to contribute to it all the time, but when you do have a little extra, putting it in the IRA is definitely a wise idea.

At the end of the day, saving for retirement isn’t always fun, and it does require some small sacrifices. However, the sacrifices you are making now will mean that you’ll have to make fewer sacrifices in the future. So, keep contributing to that 401(k) (and your other retirement funds!) regularly; in the end, you’ll be glad you did.

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Get a Better Understanding of Your Finances

It’s National Financial Literacy Month, a time of year when people are encouraged to better understand their own finances and how to work them to their benefit. So many people walk around completely clueless about “money matters,” and, as a result, often don’t realize how much further their money could go and how much harder it could be working for them.

Finance maze (Photo credit: RambergMediaImages)

Fortunately, there are several things you can do to better understand your finances. For starters, try going to your local public library. Not only do libraries offer books full of financial information, but many also hold personal finance workshops, tax filing sessions, and more to help you take control of your money.

Another super smart thing you can do is to take advantage of companies that offer financial services in your area. While hiring a professional might make you feel like you’re relinquishing control of your finances, the right professional won’t just do everything for you. No, he or she will educate you on how to make smart financial choices both now and in the future. You can find a friendly, expert voice at Platinum Financial Associates of Naperville.

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Do You have Unclaimed Property or Funds

You probably think that if you had some financial assets lying around, you’d snatch them up straightaway. And, while that very well may be true, you may just be missing out on some assets that you don’t know about.

Did you know, for example, that when the average person files his or her taxes, that person will usually accidentally leave out about $460 that could have been claimed? That’s a crazy thing to think about, but people often don’t realize what they’re entitled to and end up missing out. The best way to keep that from happening to you is to let a professional assetmanagement firm handle your taxes and your general financial needs for you.  

Not only do people lose money on unclaimed taxes, but they also lose money on unclaimed property. Whether this loss happens because they don’t know they have the property or they don’t realize that it’s claimable, it’s still a major loss. Again, a professional asset management team can let you know exactly what your assets are and how to claim them for best results.

Don’t continue missing out on money that’s rightfully yours! Call on the help of Platinum Financial Associates of Naperville, and you’ll get every penny you’re owed, guaranteed!

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Don't Use Retirement Funds for Childs Education

A recent article in The US News & World Report chronicled how many adults are dipping into their retirement funds in order to pay for the ever-rising costs of sending their children to school. While this strategy might seem like the best option or like your only option, it’s really not a smart choice. If you start making wise decisions with your money now, you can be better prepared for handling education costs, and you can do so without dipping into your retirement fund.

To begin with, start education planning as soon as possible. Even if your child is still in diapers, it’s not too early to start putting aside money for college. The right financial organization can help you to set realistic savings goals no matter what the age of your child or how long you have to save.

The right financial organization can also help you to take a future-forward approach to education planning by estimating the costs of college by the time your child will be going off to school and by helping you to prepare to meet those costs head-on.

To give your child and yourself the best future possible, don’t rely on retirement funds to pay for education costs. Instead, contact Platinum Financial Associates of Naperville to come up with a better plan that benefits both you and your child.

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Understanding Your IRA Rollover Options

You might think that an IRA rollover is simple and straightforward, and in some ways, it is. However, IRA rollovers are not one-size-fits-all ventures. No, when it comes to an IRA rollover, you actually have a few different options for transferring your funds.

For starters, you may be able to keep some of your savings or even all of your savings in the plan set up by your past place of employment. Or, if you’ve already got a new job, you may be able to take your funds

from your former employer’s plan to your new employer’s plan. You may even be able to do this in the form of an IRA, or if you wish, you can actually cash out the plan and receive your funds.

While you will likely have many or even all of these options at your disposal, it’s important to choose the one that will be the most beneficial for you. Fortunately, you don’t have to make this all important decision on your own; you can seek the help and expert advice of the financial pros at Platinum Financial Associates of Naperville.

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