4 Ways to Get Involved With Investing • The Louisville Cardinal

By Jacob Maslow – Branded Content

Do you have a friend or two that love to talk about how their money helps them become richer? Maybe they say something like, “You have to have money to make money.” Maybe it’s something you heard on TV instead, such as “I put my money to work for me. My money goes out and earns me more money.”

This only tells part of the story. It’s not enough to have money that can make you more money. You need to know how to put your money to work. The good news is that it is easier than ever with technology and modern investing strategies to start investing. With new concepts like fractional ownership in stocks, real estate, and much more, you do not need a large pile of cash to start investing. Here are four ways to get involved with investing. 

1. Stocks

Stocks are one of the most common ways people think about investing. With more stock brokerages offering fractional ownership and other trading strategies, more people have the ability to put some money in the stock market. On top of that, you’ve probably heard of an Individual Retirement Account (IRA) and a 401(k), which are both valuable tools for building a retirement nest egg. Within those types of accounts are two different ways to contribute.

In a traditional IRA or 401(k), you can contribute money pre-tax. This means the amount of money you contribute is not counted when you file your income taxes at the end of the year. However, be aware that you will still have to pay income taxes on that money whenever you begin to withdraw from the account.

On the other hand, any money you put into a Roth IRA or Roth 401(k) is considered an after-tax contribution. This means that you have previously paid taxes on that money. The advantage of a Roth IRA or a Roth 401(k) is that you do not have to pay income taxes on any of the money when you withdraw, including any gains made on your investments. Beware that you may have to pay a penalty if you withdraw from these accounts too early.

2. Real Estate

Some do…

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