5 Greatest Ways to Invest & Save your Money


Do you dream of living on an oceanfront property or having a white picket fence surrounding a beautiful home with your grandchildren playing and laughing during your retirement? It is the typical dream for most, but sadly, this dream is becoming harder to obtain.

A Harvard Business Review article "Its Time to Retire Retirement" discusses the growing age in today’s workforce. Today, we are facing a severe shortage of talent as the age group from 55–64 are working longer and consuming 52% of the growth in jobs while ages 35–44 are shrinking by 10%. The older segment is working longer due to inadequate savings for retirement and the pitfalls of the market collapse since the turn of the millennium which is causing a trickle effect to the younger generations.

It is making the dream mentioned above harder to achieve and more difficult reach as those under the age of 55 face difficulties obtaining well-paying jobs. With less money, many think it is impossible to save. I beg to differ. Grant Cardone says people are broke because they want “stuff” and I’ve heard Dave Ramsey mention this too.

You are not living beneath your means. The way to build wealth is to live on less than you make. Sounds simple and it is but you get enticed into the marketing and advertising of wanting to buy more stuff. When is the last time you saw something on Amazon and you said, “I have to get this”?

By placing your retirement at the top of your priority list, you become more determined to reach and achieve your goal and it makes it easier to obtain the dream.

Here are several topics we'll discuss to save for retirement:

1. Investing Made Simple

2. Investing With Minimal Funding

3. Investment Offerings in Debt Based Alternatives

4. Traditional Index Investment Approach

5. Invest Spare Change

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."

-Robert Kiyosaki

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Have you considered investing in your future using an online broker or an online advisor? Robo-advisors are quickly growing making it easier than ever to invest. Some prefer to speak with a professional but fear the expense of hiring an expert or financial advisor because they believe it will break their bank account. Having a financial advisor readily available to answer your questions is an important step when considering to invest and below I will highlight a few that won’t cost you a dime.

These professionals are important because they can assist you with goal planning, outline key milestones and map out a plan to ensure you are hitting your metrics. They can provide you with recommendations to reduce risk in your portfolio by offering a plethora amount of options you may not be aware of.

They ensure your portfolio is being actively managed to ensure the best investments are in your portfolio to meet your risk and goals. Having someone with such talent can get expensive.

1. Investing Made Simple

Fortunately, a company that I have been a client and still a customer of is SoFi Wealth Management. This firm offers so many benefits to its members. Some of these benefits include being invited to FREE events.

Now, I know what you’re thinking. Events? Like sales pitches? Absolutely not! In fact, they highly encourage no sales pitches and the events are primarily for communities to connect and learn from each other. They usually cater food and drinks, while other times might include music events.

Not too bad for FREE!

Members receive discounted loan rates should one need to borrow in the future. These exclusive rate discounts are for members only.

Finally, my favorite part of it all…FREE professional career and salary guidance which is a $795 value that SoFi gives away.

SoFi is a member of SIPC which means protection of your assets up to $500,000 while offering state-of-the-art encryption to protect your data. The validity of a firm is always a big factor for me. They are registered with the SEC and a member of FINRA, both highly regarded in this industry!

Check out their site today because they have an exclusive offer for you if you decide to start investing. They will charge 0% in management fees and $0 for unlimited personalized financial advice. That’s huge in this business! Learn more.

2. Investing with Minimum Funding

If you are looking to start an initial investment with a low minimum deposit, then USAA Mutual Funds may be an option for you. With minimums starting at $50 with an automatic investment each month, you will have access to over 45 different funds. This might seem intimidating because if you are new to investing, have no fear! They will walk you through the process of selecting the right fund (it's Free!) to ensure you are provided with the right options.

Not every fund is adequate for everyone because we all have different risk tolerances, are in different stages of our lives (some retiring sooner than others), and different investment horizons. That's why so many types of funds exist.

If I want a fund to invest because I plan to buy a home in 5 to 10 years, then a fund that focuses on someone retiring in 2060 isn't the right asset allocation for me.

This next company you are likely to have heard of because of their marketing on television. They are Betterment and I love the ease of technology with this firm. I use their app service which allows an investor to invest with minimum monthly deposits.

By selecting the amount of risk you want to take (stocks are riskier than bonds which means stocks SHOULD earn a higher return than bonds). Their easy process will ask a series of questions. This helps their system identify the appropriate portfolio (a mixture of stocks and bonds) for your current situation. This is usually determined by age, financial situation, and the amount of risk to take.

Betterment will most likely give you a few options to invest such as Safety Net which may be a 40% stock and 60% bond portfolio or maybe a Retirement option focusing on riskier assets if you're younger.

3. Investment Offerings in Debt Based Alternatives

Many households may have their 401(k) invested, maxed out their IRA, and are looking for additional opportunities to earn a return on their money. With a company like YieldStreet, they provide alternative investments (which are non-stocks and bonds) that act as a bond like an investment to borrowers who may seek funds to purchase or invest in Residential Real Estate, Litigation, Commercial Finance, Shipyards, and more.

This type of investing isn't for everyone so I highly recommend you speak with your financial advisor prior to investing.

The typical investment usually starts at around $10,000-$15,000 and the yields are targeted from 8-20%. Because it's a riskier investment, the return may be higher. It is important to know that these investments are not usually liquid--meaning can't quickly be turned back into cash. It is similar to loan borrowing so you won't see your entire investment until the end of the loan duration.

4. Traditional Index Investment Approach

Personal Capital offers a dynamic portfolio allocation (a mixture of stocks and/or bonds) to provide you with an efficient mixture of investments to reach your goals. Their Asset Allocation provides you the ability to invest in the U.S and International Stocks, the U.S. and International Bonds, Alternatives (gold, real estate, etc.), and usually a small percentage in cash for liquidity (usually the industry standard to meet required regulations; typically between 5-10%).

Such a mixture increases the diversification of your portfolio to minimize risk while offering better returns. To see more strategies and offers from Personal Capital, visit their site at www.personalcapital.com/wealth-management.

5. Invest Spare Change

If you are new to investing or considering it but don't have the money to start, then consider opening an account with Acorns. These app-based saving tools are a great way to put away money that seems non-invasive. The main principle behind Acorns and Qapital are subtracting the difference between the total dollar amount you spend on an item and then round that figure up. The difference is then automatically deposited in an account where earnings and interest can accrue.

These tools are amazing when trying to save up for an Emergency Fund or have a large purchase in the future. With Acorns, they have a platform that allows you to invest.

Baby Steps

Investing starts by taking baby steps and you can start investing with a minimum amount or a large amount of money. The important step is just starting. The earlier is always better. You've probably heard that before but it is so true.

Start off by setting milestones. Think of it as training for a marathon. You wouldn't just start running 26 miles. You have to set milestones so you train running 1-2 miles. The same is true for investing.

Once you have built up your emergency fund, set a milestone to save up $1,000 to invest. Then continue saving working up to $10,000, then $25,000, and so on. Setting realistic markers is the key.

You need to accept the fact that either you can keep working for your money, or your money can start working for you. The road isn't always easy and it takes setting goals and determination. In the long run, you will be happy you chose to live on less now.

#howtoinvest #howtoinvestforretirement #savingmoneyforretirement

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