- September 13, 2021
- Posted by: jglen
- Category: Budget and Goals
The term investment is directly related to money saving, the destination of the capital or postponing the use of the money that has been collected. Investing money refers to giving adequate use to resources, with the aim of achieving some type of benefit, sometimes an economic growth of the investment or simply having the money safely stored, although investments always have a risk.
In order to invest is necessary to research, no one will find financial stability immediately; you must analyze this type of processes in the long term, but focusing on achieving what you want, whether it is acquiring a home, education for yourself or your children, or even a comfortable retirement.
The first step is to develop a financial plan to organize your income and expenses, remember that to determine how much you can invest you must first identify your monthly expenses in order to know how much you can invest. Likewise, make a list of the financial goals you have and which are the most important according to your lifestyle, and most importantly, establish an amount of time to meet them, that is, the number of years in which you will strive to achieve them. .
Once you have identified your monthly expenses, determine which of those expenses can be reduced, you will be surprised when you buy products through discount coupons or find cheaper brands and save to invest later.
Now, it is important to be clear that when you invest your money you have a greater chance of losing it than when you save it, so take into consideration government bonds and bond funds, they are an option to invest your money at a low risk. They are also called “Fixed Income Securities” this is because what you pay is fixed at the time of sale, that is to say that in advance you can know the profitability of your investment and the duration of the agreement.
These types of bonds are issued by the United States Department of the Treasury, are a type of investment similar to a savings instrument and are exempt from local and state taxes.
In the case of municipal bonds, they are exempt from federal income tax and, in some cases, also from state income tax.
In the event that your particular objective is to invest to pay for university studies or for retirement, there are investments with deferred taxes that allow you to postpone or even eliminate the payment of income taxes.
The Government has authorities that you can go to when you decide to make an investment:
• The Securities and Exchange Commission (SEC).
• The Financial Industry Regulatory Authority (FINRA)
• The Commodity Futures Trading Commission