Money Donuts® Investing Your Money: Begin With Basics
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Jun 17, 2024 Explore the basics of investing with insights on compound interest and the importance of diversification. Discover how employer-sponsored plans like 401(k)s can set young investors on a path to financial growth. The discussion debunks common myths, revealing investing is for everyone, not just the wealthy. Learn practical strategies for maximizing returns and setting financial goals. The team emphasizes the need for a solid financial foundation, including budgeting and emergency funds, before diving into the investment world.
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Early Investing Experiences
- Alexis recalls learning about compound interest in high school but not acting on it.
- Stephen mentions getting advice to contribute to his 401k early on, which he initially followed but later withdrew and regretted.
Starting with Retirement Plans
- Consider employer-sponsored retirement plans like 401ks as a starting point for investing.
- Explore other options like college investment accounts and understand the basics of retirement accounts.
Savings vs. Investments
- Savings offer lower returns but higher liquidity for immediate needs.
- Investments yield higher returns over the long term but often carry penalties for early withdrawal.