Financial Tips for Short & Long Term Goals

Hey there, this a financial blog written by a good friend Liz, and CFP.
You can read more of her awesome tips by clicking the link at the end of this article!

How Do I Save for My Future?

You know you should be putting aside money for your future, but what does that mean? Where do you put it? And you may be wondering how on earth you can save for the future, when everything is so expensive right now!

The first step in saving for your future is understanding the different types of accounts in which you can save money. The easiest way to understand which type of account you might use is to determine when you will (or might) need that money.

How to Save for the Short-Term

For money that you may use sooner rather than later, say for a house down payment or your emergency fund (6-12 months of living expenses), a savings account or money market account may be your best bet. These accounts are available at your local bank, a credit union, or an online bank. Money market accounts often pay a higher interest rate than a savings account. Check the difference in interest rates, and make sure you understand if there are any restrictions on withdrawals.

Mid- to Long-Term savings

Investment accounts may be an option if your time frame is longer. These accounts invest in any of the following: stocks, bonds, mutual funds, ETFs, or a combination of those. These investments can offer a higher return over the long-run, but can be tricky to understand. If you are new to investing, or just aren’t comfortable with it, consulting with a financial professional would be prudent. Because these accounts fluctuate in value they should not be used for short-term savings.

Saving for Retirement

These are usually invested similarly to investment accounts, but the significant difference is that they are tax-advantaged. What the heck does that mean? It means that the IRS gives you a break on taxes to encourage you to save for retirement. You can save money now (Traditional) or later (Roth).

Quick Tip!

Saving can be a challenge. One of the easiest ways to save is to automate. You can have money taken right out of your paycheck for retirement savings, or set up a monthly move from your checking account to a savings or investment account. My advice is to treat saving as you would any other bill: pay it before you determine how much spending money you have for the month.

What to Do on Your Own and When to Contact a Professional

When it comes to short-term savings, that’s a system you can usually create on your own. When it comes to the complexities of saving long-term, that’s when you might want to contact a professional. A financial advisor can assist you with understanding all of your investment options, tax strategies – now and as you enter retirement – and accountability so you can pursue your goals.

Keep in mind that it’s important to find the right fit; this is a relationship you will (hopefully) have for many years to come. CLICK HERE for some questions to ask a potential advisor!

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through GPS Wealth Strategies Group LLC, a registered investment advisor. GPS Wealth Strategies Group LLC and Aspen Wealth Management are separate entities from LPL Financial.

The LPL Financial registered representative associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 1⁄2 may result in a 10% IRS penalty in addition to current income tax. A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earning prior to age 59 1⁄2 or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty. Limitations and restrictions apply.

Conclusion

I hope you enjoyed this article, you can instill some of these tips and tricks with one of my hypnotherapy recordings! Or pick up more information from Liz’s website here!