Hello SOTGC community,
San Diego’s Fox News affiliate invited me on their show last week to provide advice on how women can quickly and easily grow their money. Click here to watch the clip.
Don’t have five minutes to watch? Then I’ll give you the CliffsNotes.
1. Contribute as much as you can possibly afford (up to the legal limit) to a tax-deferred account that provides an immediate tax break:
- If your employer provides a 401(k) or 403(b), contribute to it.
- If your employer doesn’t provide one, contribute to a traditional IRA.
- If you are self-employed, contribute to a SEP IRA.
- If you are a stay-at-home mom and your husband has a job, contribute to a traditional IRA.
The more money you can shield from Uncle Sam and his 47 state sons, the more money you have to invest. Not only do you immediately reduce your taxable income, the money grows in the account without being taxed until you retire. You want a pot of money in 15, 20 or 30 years? This is the quickest, most painless way to do it.
2. Take some investment risk. Yes, that means the stock market. Don’t be a fraidy cat. (Marney, please insert a picture of a frightened cat.) Whether you buy individual stocks, exchange-traded funds, or mutual funds, make sure there is a large stock component. The only exception is if you plan to access your retirement account within the next three to five years because the stock market can be volatile. Just remember this: your money can’t grow in the bank or under the mattress.
If you think this article could be helpful to your friends, family, or colleagues, please share on your social networks.