Nails Magazine

Career Handbook 2013

Magazine for the professional nail industry.

Issue link: http://nailsmag.epubxp.com/i/139413

Contents of this Issue

Navigation

Page 76 of 83

These three easy steps are all it takes to set up a lifetime savings plan: you've made the commitment, formed a habit, and allocated wisely. Once your plan is underway, you'll need to decide where to invest these dollars. There are many types of accounts. Here are a few points to consider. > Convenience. Since you are trying to make this a habit, set up your initial accounts where it is easy to make deposits. Remember, it won't take much of an obstacle to end a habit. Make it easy to stay committed. > Fees. Because today's savings accounts only pay about 1%, find accounts where monthly fees won't eat up the earnings. Credit unions are often a great source for low fees. > Risk tolerance. As your money grows, there are more investment options for generating higher investment returns (earnings). Higher returns generally mean higher risk of loss. Don't be talked into investments that keep you awake at night worrying. Find an investment with whose risk you are comfortable. > Investment horizon. This refers to the length of time you expect your money to be invested. If you will use the money within a year, use a savings-type account where there is no risk for untimely fluctuations in value. But, if you won't be using the money for a long time, you can invest in something that has higher returns, more risk, and consequently more fluctuations. With a longer investment horizon, you can time the withdrawal of these dollars and not worry about having to do it on a "bad" day. > Mutual funds. With over 10,000 funds to choose from, you have a wide variety of investments to match your risk tolerance and investment horizon. Using mutual funds gives you the option to not "put all your eggs in one basket." So even with only a small amount to invest, you can invest in small pieces of many stocks and bonds allowing you to diversify and spread your risk. > Retirement plans. For long-term investments, take advantage of tax laws that allow you to defer and/or eliminate tax consequences. By doing so, you're using government dollars to contribute to your future. There are many types of retirement plans to choose from. Consult your tax professional to find the one that fits you best. These are just some of the investment considerations ahead of you. Before you know it, your savings will grow into something to be proud of and you'll be on your way to financial freedom. Regardless of your age — today is the perfect day to begin a new conscious life with money. Jane Honeck, CPA, PFS, specializes in tax and financial planning for professionals, small businesses, and individuals. She is the author of The Problem With Money? It's Not About the Money! To learn more, visit www.janehoneck.com. >MF?MK CADDAF? HGO=J FgG\gj$Fg@Yjk`9[a\k$FgGadk 9k]hla[gjemdY 9nYadYZd]Yl2 NakalmkYl2 \j_kZ]Ymlq&[ge DYc]>gj]kl$;91*.+( 0((%/0(%.111 FYadEYjc GjdYf\g>dgja\Y ,(/%010%)-1 EaYeaFYadKmhhda]k @ge]kl]Y\$>dgja\Y +(-%*,-%-./0 FYadKmhhdq@gmk] KYf?YZja]d$;Y& .*.%+(/%(000 MK9:]YmlqKmhhdq O]kleafkl]j$;Y& /),%01)%*,*( FYlagfoa\]FYadKmhhdq @gmklgf&LP; /)+%-**%*(0( >gmjk]Ykgfk:]YmlqKmhhdq =m_]f]$Gj]_gf -,)%,0,%.... ;`YehagfFYadKmhhdq E]eh`ak$Lf 1()%+0.%**(( CEPAf[ :jgfp$F]oQgjc /)0%-1/%1-+, @a>Yk`agf:]YmlqKmhhda]k Dgf_AkdYf\;alq$F]oQgjc /)0%/0.%*)+) www.nailsmag.com/fifi/18262 JUNE 2012 | NAILS MAGAZINE | 77

Articles in this issue

Links on this page

Archives of this issue

view archives of Nails Magazine - Career Handbook 2013