Where do we start?
My spouse and I are in our mid-thirties and we each have retirement plans through our jobs that we have been investing in for the last 10-15 years. Like many millennials, we didn’t grow up learning about managing our finances—we just regularly heard that social security won’t be reliable by the time we reach retirement so we need to do more. We’d like to expand our portfolio and begin investing in other ways, but we just don’t know where to start. Any advice?
Terry Says
I had to look twice at the date, since you sent this in a few days ago — but still after the market decline. I’m trying to catch up on all the questions!
You are now getting a first-hand lesson in investments. Over the LONG RUN — at least 20 years — history says you will come out far ahead. So keep investing in your retirement plans, in a diversified stock market fund, and ignore the market headlines. You DO have the long run –and money put in now will buy more shares of your mutual funds inside your retirement plan. America will get past this, and you can afford to wait.
Also, you should have some liquidity — savings– outside your retirement plan for emergencies. That should be kept in a bank money market fund — and I like to see younger people have at least a year’s expenses set aside. That’s not realistic for so many people — as studies show that even an unexpected $400 bill could throw most families for a loop. But since you’re doing such a good job in saving, I thought I’d throw that in there!
Pleas write back in a year. Perhaps by then you’ll have children and you will for sure have NO extra money when that happens! If not, I will come up with some suggestions beyond your retirement account and backup savings!
