52 Simple Ways to Manage Your Money – 33. Save Now, Enjoy Later – IRAs What it Is … An Individual Retirement Account (IRA) allows you to invest a maxi mum of $2,000 per year of earned income. The money grows on a tax- deferred basis. Taxes are paid on the money at the time … Read more
52 Simple Ways to Manage Your Money – 32. Putting Gold Into The Golden Years – Retirement Planning What it is … It is the time set aside after traditional work years have ended— a time of self-realization and the achievement of all those leftover items you never had time for when you were working. … Read more
52 Simple Ways to Manage Your Money – 31. Puffery – Inflation What it is … The erosion of your principal through increased cost of goods and services. How it hurts… It is difficult to see concretely and difficult to understand. Forces you to save larger amounts in order to equal the same buying power … Read more
52 Simple Ways to Manage Your Money – 30. Steady As You Go – Dollar-Cost Averaging What it is… A method of investing where you invest a specific dollar amount at a specific time, regardless of the stock or bond markets’ performance. How it helps … Encourages you to save regularly and consistently. Averages out … Read more
52 Simple Ways to Manage Your Money – 29. One At A Time – Single Issue Stocks And Bonds What it is… Purchasing individual shares of stocks or bonds as a result of your own research or the advice of a financial advisor. How It helps… Potential return can be higher than taxes and inflation. … Read more
52 Simple Ways to Manage Your Money – 28. No More Taxes – Tax-Free Municipal Bond Funds What it is … A method of investing in tax-free municipal bonds with a pool of money contributed by a number of investors. A professional manager buys and sells bonds according to parameters set by the specific fund. … Read more
52 Simple Ways to Manage Your Money – 27. The Tie That Bonds – Bond Funds What It is… A method of investing in the bond market with a pool of money contributed by a number of investors. A professional manager buys and sells bonds according to parameters set by the specific fund. How it … Read more
52 Simple Ways to Manage Your Money – 26. It’s Mutual – Stock Funds What it is… A method of investing in the stock market with a pool of money contributed by a number of investors. A professional manager buys and sells stocks according co parameters set by the specific fund. How it helps… Provides … Read more
52 Simple Ways to Manage Your Money – 25. More Than One Basket – Diversification What It is… Investing money into different types of investments, such as bank certificates of deposit, stocks, bonds, and real estate. How it helps … Hedges against loss. Provides safety and flexibility. Key items to look for… Investments with small … Read more
52 Simple Ways to Manage Your Money – 24. Squirrel It Away – Certificates Of Deposit What it Is… An investment with a bank or savings and loan whereby you invest a specific amount of money for a specified time frame. The return on your principal is guaranteed, and an interest rate is promised for … Read more
