Investing a fixed amount in a fund at regular intervals means that you will automatically buy more shares when the price is low and fewer shares when the price is high. It is also a sensible way to manage two important risks that can get in your way as you pursue your long-term financial goals. First, it helps you avoid the risk of investing all of your money when the market is at its highest.
Clients seeking information regarding their particular investment needs should contact a financial professional. Putting together your own personal investment plan can be quite a challenge. Even if you do not plan on working with a financial advisor over the long-term, you might consider paying an advisor to help you put your plan together. You can still do all the investing yourself but the advisor will be able to help you understand each part of your personal investment plan and how it relates to different investments. Whatever you decide, do not neglect writing up a personal investment plan or procrastinate it simply because it will take some effort.
When it comes to planning and investing for education, there are a variety of ways to pursue your goal. These include Coverdell and Custodial accounts, but the most common choice is a 529 plan.
Instead, you’ll want to match your tolerance for risk with the mix of funds you choose. Keep in mind that the wider your selection of investments, the less chance you’ll see big swings in your overall returns. In investing, there’s a relationship between risk and reward. Investments with the potential for high long-term returns generally present a higher risk of loss. However , as investment risk declines, so does potential return.
Second, and even more important, it can help you avoid one of the worst mistakes an investor can make — simply not getting around to investing enough. Invest in new funds, rebalance or readjust existing investments to align your portfolio with both your risk tolerance and goals. Portability -After one year of service, you can take the vested value of your contributions with you when you leave the state or you can leave your funds in the Investment Plan. If you receive a distribution, regardless of a rollover or cash payment, you will be considered retired regardless of your age. At the time you receive a distribution you are retired under the FRS and will be subject to the laws and rules governing such retirees. You may be able to receive future retirement benefits if you return to employment with a FRS participating employer.
Like nearly any fund, a S&P 500 index fund offers immediate diversification, allowing you to own a piece of all of those companies. The fund includes companies from every industry, making it more resilient than many investments. Over time, the index has returned about 10 percent annually. These funds can be purchased withvery low expense ratios and they’re some of the best index funds. This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings.
In general, stocks tend to be riskier than bonds, and short-term investments tend to be more risky than longer-term ones. You could lose money by investing in the Money Market Investment Option. Although a money market fund seeks to preserve the value of an investment at $1 per share, it cannot guarantee it will do so. Investment in the Money Market Investment Option is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The sponsor has no legal obligation to provide financial support to the underlying fund, and you should not expect that the sponsor will provide financial support to the underlying fund at any time. Seeking higher education for yourself or family members is one of the most important investments you can make.