Understanding past actions, especially financial ones, is certainly easier when looking back. Instead of dwelling on past mistakes, we should focus on building a secure financial future. The saying “there’s no time like the present” is especially true when it comes to planning and investing for the future.
### INVESTING IN THE FUTURE
Investing in ourselves often starts with securing our financial future. As we get older, we realize that time isn’t always on our side. A smarter, more experienced perspective recognizes this.
One logical step to future security is setting up the right investment accounts. Popular options outside of employer-sponsored plans include Roth IRAs, Traditional IRAs, and general Investment Accounts.
#### ROTH IRA
Choosing the right account depends on your specific situation. I opted for a Roth IRA with Betterment, a well-known robo-advisory service with low fees. They handle account rebalancing, which is great for beginners. For someone self-employed like me, a Roth IRA is smart because the investments are post-tax, so withdrawals during retirement aren’t taxed. It’s better to pay taxes now, while earning, rather than later when income might be limited. Roth IRAs do have annual contribution limits ($6,000 for 2020 or $7,000 for those over 50).
#### ANOTHER INVESTMENT ACCOUNT
Besides the Roth IRA, I also opened a general investment account with Acorns. This platform rounds up your spending and helps you save and invest, which is perfect if you struggle to set money aside. I started with Acorns Lite, which costs $1 a month, instead of the $3 for Acorns Personal. Since I already had a Roth IRA, I preferred this additional account. Acorns, like Betterment, efficiently handles portfolio diversification and rebalancing.
### KEEP TRACK OF YOUR NET WORTH
Creating investment accounts is a good start, but it’s crucial to monitor your net worth to measure financial growth. Some years ago, while aiming to be debt-free, I discovered Personal Capital. This easy-to-use platform helps you track your net worth by linking all your accounts. Although the initial setup takes some time, it offers a clear financial overview. Watching your net worth grow monthly is gratifying and each positive change indicates financial success.
### LIFE INSURANCE
Life insurance might be a touchy topic, but it’s highly important, especially today. My spouse and I discussed it for years and finally decided to take action. The right life insurance policy varies by individual needs. For a simple term policy, Bestow Life Insurance is a good start, with a straightforward application process and quick premium estimates. While it might not seem directly linked to investing in your future, life insurance is vital for family security in case something happens.
### SUMMARY: INVESTING IN YOURSELF
In summary, you can start investing in yourself today through several key actions:
– Opening investment accounts
– Regularly tracking your net worth
– Securing a reliable life insurance policy
Following these steps will make your future self grateful for your financial foresight and planning. What unique ways have you found to invest in yourself?