INVESTING IN YOUR 30’S
As a person gets into their 30’s, they will often look to begin increasing their wealth. People in their 30’s are often in their peak earning years and are therefore most likely able to invest a lot of their income in assets that can help them build wealth and retire. For those in their 30’s looking to invest, there are many options that they should consider in order to reach their unique financial goals.
When you get into your 30’s, it will be wise to begin or continue investing in assets such as 401K plans and IRA’s. You will want to invest in assets that can generate income such as dividend stocks, bonds and annuities. Along with these types of assets, people in their 30’s will also benefit by investing in things such as precious metals, cryptocurrencies, index funds and real estate investment trusts. With a diversified portfolio, those in their 30’s will be in position to establish long term financial security.
CONTINUE WITH YOUR 401K PLAN
Most people who begin working at a traditional job will have the option to invest in a 401K plan. This is a retirement plan in which a person invests a portion of their paycheck into an account that grows over time. As you get into your 30’s, it is wise to continue investing in your 401K plan in order to make progress towards your long term financial goals.
There are some people in their 30’s who have yet to invest their money. While this may be overwhelming for some, there is still plenty of time to begin saving and investing. If you have a full time job, inquire about a 401K plan and begin distributing funds into the plan as soon as you begin working at your current job.
MAXIMIZE YOUR ROTH IRA CONTRIBUTIONS
Another one of the most common types of assets that people invest in is an IRA. An individual retirement account is one of the best ways to build wealth through investing. Those in their 30’s will want to continue investing in this type of account so that they can grow their wealth over time.
When investing in an IRA, continue investing in it by maximizing your contributions. You will want to invest in a Roth IRA which is the most beneficial. By maximizing the contribution to your Roth IRA, you will increase your wealth and avoid tax liabilities at the same time.
ACQUIRE DIVIDEND STOCKS
As you approach your 30’s, it is a good idea to focus on generating an income as well as increasing your total fortune. A good way to establish a source of income from investing is to acquire dividend stocks. These stocks allow you to receive a portion of the profits from a company during each year.
Investing in dividend stocks, helps diversify your portfolio as well as allowing you to earn money from the stocks that you already invested in. When you get into your 30’s, look into buying these types of stocks on a regular basis so that you can be financially stable once you retire.
INVEST IN BONDS
As well as investing in stocks, it is also beneficial to invest your money in bonds. A bond is an investment that generates income just like dividend stocks. You receive funds when the bond matures and gets paid back to you.
With bonds, you can invest in one of the safest securities available. By having lots of bonds in your portfolio, you can get steady payments over time and supplement the amount you earn in dividend stocks. Once you reach your 30’s, it is a good idea to begin making conservative investments in order to reach your financial goals.
CONSIDER ANNUITIES
Along with dividend stocks and bonds, you should consider annuities. This is a type of investment where you invest in an insurance policy that provides you with an income. Getting annuities can help supplement your income once you retire.
Compared to stocks and bonds, annuities can be a little risky. However, with careful consideration and a consultation with a financial advisor, you can learn more about annuities and how to avoid the risks that are associated with this asset. By getting annuities, you can add a valuable asset to your portfolio in the future.
INDEX FUNDS
An index fund is a collection of stocks that you can invest in to grow your wealth. By having a variety of different stocks in a fund, you will be able to maximize your returns each year. These index funds usually provide a consistent return, so that you can get steady gains in your portfolio each year.
The best way to get the most out of index funds is to invest in stocks of different companies and of various sizes. It is also a good idea to invest in index funds made up of stocks in a variety of industries. When you are in your 30’s investing in index funds will help you get good returns and help you make progress towards building your long term wealth.
BUY PRECIOUS METALS
While most investment options consist of financial securities such as stocks and bonds, you will also want to consider investing in precious metals. These are items such as gold and silver. You can purchase coins and bars that are made up of these materials.
One of the best things about precious metals is that they retain their value over time as well as increase in their overall value. Precious metals are an excellent hedge against inflation which allows you to possess a valuable asset in case the value of the dollar declines. When it comes to precious metals, you will need to make sure that they are in a safe place since they are physical assets instead of financial securities.
REAL ESTATE & INVESTMENT TRUSTS
Another great thing to invest in once you reach your 30’s is real estate. One of the ways in which you can invest in real estate is to purchase rental properties and receive a monthly income from the property. As well as investing in properties and receiving a rental income, you can invest in real estate investment trusts which gives you a financial interest for multiple properties.
When you reach your 30’s you will begin to get closer to middle age and focus on increasing your wealth. As you get into this age range, you will want to consider investing in many assets that can help you grow your savings and provide you with a stable income. With careful consideration and diversification, your 30’s will be one of the best times for you to invest.