For young investors get who want to invest their money in a saving plan face a confusing array of investment schemes in the financial markets. Not only are there a plethora of investment products and services to choose from but there are as many investment firms that market these products in diverse capacities. However, with the right knowledge of the market conditions and clear investment goals, finding the appropriate investment scheme is not that difficult. Searching for the appropriate investment scheme begins with examining what the investor wants to get out of his money both now and in the future.
Financial expert Linda O Foster emphasize that for young investors, their most important asset is time. At this particular phase of their lives, their main investment goal for their long-term savings should be growth. For investors, who are in their twenties, have at least forty years to accumulate for their retirement savings. In recent years, common stock and real estate are the only two classes of assets to exceed the rate of inflation in terms of growth in the economy. This implies that a young investor should put his long-term savings in equities like common stock or stock mutual funds and real estate holdings. For such young people it is imperative for them to enhance their purchasing power in their retirement savings over the course of their lives because these investors need every ounce of it when they stop working. The Linda O Foster Poulsbo WA office is visited by young professionals daily to get invaluable investment advice.
These financial specialists also advocate that real estate market is also ideal investment option that they can opt for but this investment scheme depends on several variables. These include duration of the investor’s current residence, the current conditions prevailing in the real estate market, rental price, the existing interest rate environment and investor’s financial conditions. Moreover, if the investor has been living in a particular residence for less than five years then it is cheaper to rent as it normally takes five to seven years to build up enough equity to buy a new home verses renting.
According to these proficient financial professionals alternative for short-term investments like keeping cash in an emergency fund is the same as for other categories of investors regardless of their age. Short-term investment schemes like money market funds, saving accounts and short-term certificates of deposits provide young investors sufficient the safety and liquidity for their idle cash. The amount of cash, which young investors intend to keep aside in such investment schemes, depends upon their financial situation. However, these financial experts suggest that these young investors should keep at least three to six months of cash in such investment schemes to cover their living expenses.
She emphasizes that the most vital decision a young investor can make is cultivate the habit of saving regularly. Her team experts at the Linda O Foster Poulsbo, WA office go on to explain that what investment scheme intent to invest in matters less than the fact that these investors have taken the initiative to save. Moreover, the appropriate investment schemes for these investors depend upon their individual investment objectives, risk-taking abilities and time horizon.