When you think of your future, what comes to mind? A cushy job? A couple of kids? Traveling to far away places?

What about making sure your after-retirement years are secure because you took care of your finances early?

It's time for a little PSA from your favorite credit union: Investing in your future should start while you are young. When you commit to investing as a young adult, you can utilize compound interest, diversify you portfolio and take on higher risk and ultimately, retire without stress.

INVESTING 101

First things first, let's break down the difference between savings and investing. Savings is putting money aside for a specific, short or long-term purpose. Think: new car, vacation, house, or college.

Investing in putting money into a certain type of account or institution to grow capital over time. AKA, giving institutions your money and expecting more in return someday. Investing in your future ensures that you can retire peacefully and without stress.

The most common investment types are stocks, bonds, mutual funds, certificates of deposit, 401(k)s, and IRAs. The benefit of investing early is experiencing long-term growth and compounding interest over time. 

Now that you know a little bit about investing, let's talk about how to do it.

HOW TO START INVESTING

What's your first step to getting this investment train rolling? Determining your goals!

Goals are the first step to any new venture. When you are deciding where to allocate your money for investments, you need to determine your risk tolerance. You may want to focus on diversifying your investment portfolio so your retirement is vested in a combination of low, moderate and higher risk investments. Generally, the lower the risk the lower the return, and the higher the risk, the higher the return.

After determining your goals, you'll want to choose where to send your money, and how much to dedicate to each account. Remember, your contributions aren't set in stone! You can always increase or decrease them as time goes by. Not every phase of life will come with the same expenses, so even just a little bit adds up over time. Hint, hint, this is why starting your retirement accounts early is so important!

IT'S NEVER TO LATE TO INVEST

If you didn't start investing early, all hope is not lost. It is never too late to put  money aside for your retirement. After age 50, you are allowed to contribute extra to your 401(k) or IRA to ensure you are prepared for your retirment years. 

At Lampco Federal Credit Union, our financial advisors are here to help you determine which investment options are right for you. By looking at your current investments, liquid assets, and income range, they can help you determine where your money can benefit you most. 

Contact a financial advisor at Lampco today to get your investment portfolio on track!