Last Updated: 12/10/2018
A recent study conducted by GuideVine found that over 50% of participants surveyed said they lack confidence when it came to creating a secure long-term financial plan.
Many Americans simply feel lost when it comes to building a successful financial future. If you feel as though you lack financial direction, there are numerous investments that will help you increase your financial confidence.
Here are a few investments you can start making today to build your financial confidence.
Quick Article Guide:
- Your Own Financial Education
- Life Insurance
- A Financial Planner
- Your Health
- Company Retirement Plan
- Roth IRA
- A Tax Professional
- New Skills
- Your Children’s Financial Education
- A Charity or Cause You’re Passionate About
Financial literacy is the understanding of financial concepts and how they impact your financial future. Becoming financially literate will help you understand the value of money and how you can better manage your finances.
In order to set up a successful financial future for yourself, you must take matters into your own hands. Take the time to invest in your own financial education.
Here are a few ways to invest in your financial literacy:
- Research financial terms and concepts.
- Seek financial professionals who can point you in the right direction and give you valuable advice.
- Reach out to your friends and family who have a strong understanding of the financial industry at large.
- Stay up to date on all financial news and happenings within the market.
- Read financial books to boost your knowledge of how money and markets work.
Investing in your own financial knowledge will increase your confidence and help you reach a more secure financial future.
Does your family rely on your income for financial support? Would they bear the financial burden if you were to pass away? If so, you should invest in life insurance. Many people shy away from purchasing a policy because the task seems too large to handle alone. With all of the life insurance policies available, it may be challenging to determine which policy is right for you.
Generally, life insurance can be broken down into two categories: term life insurance and whole life insurance. With term life insurance, you are able to select a specific time frame for your coverage, with options of 10, 15, 20, 30, 35, or 40-year terms. Whole life insurance policies provide permanent coverage over your lifetime. Some policies also provide a guaranteed cash value.
Determining which life insurance policy is suitable for you and your family can be a daunting. Seek out a life insurance expert to help you figure out which policy is right for your needs.
A life insurance expert isn’t the only financial professional you may want to seek for advisement. Financial planners are professionals who can help you create a comprehensive financial plan to reach your goals and objectives. By partnering with a financial planner you can capitalize on their expertise and experience.
Investing in a financial planner will help you avoid the many financial mistakes people make. Instead of navigating the treacherous waters of the financial world alone, find a financial planner you trust to guide you. They will provide the tools and resources you need in order to increase your financial confidence.
According to the Fidelity Retiree Health Care Cost Estimate, as of 2018, a 65-year-old couple will need $280,000 of after-tax dollars to cover health care costs. Keep in mind, this amount may vary depending on where you retire, if you’re in good health, and how long you live.
Health care costs will continue to rise. Investing in your health now and into retirement will help you minimize the cost. Make your health a priority by eating right, exercising, and visiting your doctor regularly. The more proactive you are in taking care of your health, the less you will potentially pay in retirement.
You may also want to consider investing in a Health Savings Account (HSA) . With an HSA, you can contribute with pre-tax dollars and potentially take tax-free distributions for qualifying medical expenses. In some cases, your employer may contribute to this account as well. Setting up a HSA account will assist in boosting the amount you’ll save for future health care costs.
Many employers offer the benefit of a retirement plan. These plans vary from company to company, but they can help you build your financial portfolio over time. By investing in your employer’s retirement plan, you will begin to establish a solid financial foundation for your future.
Additionally, some companies offer a match program. This means that they will match your contribution up to a certain amount.
For example, your employer may match up to 4% of your contribution. If you automatically contribute 4%, your contribution will double due to your employer’s match. If you don’t invest in your company’s retirement plan, you’re essentially leaving a revenue resource untapped.
If you’re not investing in the plan, head to your company’s Human Resources department and inquire about how you can start contributing today.
There are many investment vehicles that can help you reach a secure financial future. However, investing in a Roth IRA may have a few benefits other accounts don’t offer. For example, Roth IRA accounts allow you to contribute with after-tax dollars. Then, in retirement, you can take tax-free distributions (you must be at least 59 ½ to not acquire a 10% penalty on distributions).
By contributing to a Roth IRA throughout your working life, you will minimize your tax bill in retirement.
Tax advantages aren’t the only benefit Roth IRAs offer. They are also a great way to build a lasting legacy for your family. If you want to leave financial support for your loved ones, you can contribute to your Roth IRA well into retirement.
With all the benefits Roth IRAs provide, investing in an account is a great way to increase your financial security now and into the future.
Even if you do everything you can to minimize your tax bill, it may be wise to enlist a tax professional. Tax advisers help you develop a comprehensive tax strategy. They can also help you find additional ways to limit your tax burden.
A tax professional’s experience and knowledge will provide the guidance you need to save on taxes.
The economic landscape is ever-changing. With technology advancements increasing at a rapid pace, your job security may be in jeopardy. If you rely on your job to provide financial security for you and your family, it’s your responsibility to continue to adapt.
This means that as the world changes, you should change with it. Employers are looking for employees with increasingly diverse skill sets. They hire candidates who have skills in many different areas and are willing to continue to grow and learn. That’s why it’s important to invest in new skills.
Whether you decide to take up a new language or learn a new software system, these skills will set you apart from other candidates in the future. So, take the time to learn something new. It will not only help you find job security, it will help you boost your financial confidence.
Your children will carry your legacy on for years to come. It’s important they carry on the wisdom you provide. It’s up to you to help your children learn the positive financial habits and skills they need in order to achieve a secure financial future.
Take the time to educate them and provide the knowledge they need to boost their financial confidence. It may also be wise to invest in some financial education for your children. Investing in your child’s financial future will pay off for decades and maybe even centuries to come.
Investing your time and money with an organization you’re passionate about can open your mind. The sense of donating your time and connecting with others will put your own financial struggles into perspective.
Not only does giving to charity help those in need but it may help with your money management skills. If you make a commitment to donate on a regular basis, you will be more attentive to your finances. Investing in a cause you care about will help you build your financial confidence.
The bottom line
Take the time to invest in your financial future. These investments will help you increase your financial security and build your capabilities and knowledge so you’re better equipped to handle financial decisions as they come.
At Term Life Advice, we work with 63 top-rated life insurance companies to help our client’s find the most affordable life insurance coverage. We also offer no exam life insurance if you’re schedule is too full to meet with a nurse, or if need insurance in a hurry to collateralize a business loan.
Give us a call today at 855-902-6494 for some accurate rates to help you get started, or you can request an online quote below to instantly compare your options.