With so little to look forward to, why not take the time to get your money right?
For February, were tackling one of the most fruitful aspects of personal finance: Investing.
It is, as I said, to invest for retirement.
There are two types of IRAs: A traditional IRA and a Roth IRA.
Determine which account works for you, and find a broker if you gotta.
Sites like NerdWalletoffer comparisons.
You will also want to settle on a monthly contribution that is financially feasible.
If youre offered an employer match,contribute at least up to that amount.
If you’re free to contribute even just $10, thats a start.
Does your asset allocation align properly with your risk tolerance?
Has your risk tolerance changed at all since you set up your investments?
Could you contribute more?
When was the last time youchecked the fees youre paying?
Or, maybe youre ready to move beyond retirement investing.
Maybe you just want toescalate your Roth contributions.
Article:Should You Convert to a Roth During a Down Market?
Luckily, there are no complicated strategies you gotta learn, particularly if youre investing primarily for retirement.
Active investments, in which aperson picks stocks and fundsfor you,does not fare nearly as well.
Thats why letting your investments sit in these accounts is the best long-term strategy.
In that case, youre still up by 1 percent overall.
Its also important to pick inexpensive funds, another advantage of index funds.
Vanguard and Fidelity both offer inexpensive options, as do many other financial firms.
You should look for funds charging less than one percent.
(There aresome other feesto be on the lookout for as well.)
There, youll see performance, holdings, fees, etc.
(I suggest Vanguards.)
This will help you make better informed decisions and have a target in mind.
Its hard to save and invest if you dont know what youre doing it all for.
And thats
not
counting salary increases, which youll presumably receive, or an employer match.
This is on top of whatever goal you created for yourself in Week 1.
Reconsider yourdomestic to international stock ratio.
Just something to keep in mind.
Dont worry if themarket tanks.
The market will go back up.
Set up alerts once a year to check your asset allocation and recalibrate as needed.
Researchways you’ve got the option to further diversify.
Schedule periodic check-ins to check that youre still on track to accomplish your goals.
Thats a pretty full month.
Stay tuned for Marchs challenge, in which well get a handle on our tax bill.
Email me:[email protected].
For more from Lifehacker, be sure to follow us on Instagram@lifehackerdotcom.
