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Developing a Successful Investment Portfolio

By Rick Walter
5/21/2018

There are four basic steps that may enable you to develop a successful well-designed portfolio. These strategies can also carry over to your employer-sponsored and personal retirement plans as well.

Step 1: Determine your Objectives and Time Horizon
This is the amount of time that you have before you would like to reach your goal. The amount of time you have determines what types of investments that may be appropriate for you. The more time you have the more risk you may be able to assume.

Step 2: Select the Appropriate Investment Categories
There are many different types of categories of investments that are available, including alternative investments but the major categories are: Cash and cash equivalents, Fixed-principal investments, Debt, Equities, and Tangible investments (Real Estate).

Step 3: Find the Appropriate Balance
Once you have selected the appropriate categories determine the percentage of your portfolio that will be invested in each category using the proper asset allocation method that is right for you based on your risk profile. The total return of your portfolio will be determined by the asset classes that you select. Asset allocation is a method that helps you manage investment risk. Continue reading Developing a Successful Investment Portfolio

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Benefits of A Roth IRA

By Rick Walter

Considering savings is essential, but particularly with regards to retirement. Americans are living longer than ever before, and retirement is getting increasingly less affordable as living costs and inflation continue to grow. Several investment vehicles exist to assist you to save for your retirement like a Roth IRA.

A Roth IRA is an individual retirement savings account which allows your cash to grow tax free. You place your own after tax dollars in a Roth IRA, which means that you’ve already paid taxes on the cash you put inside. Every cent in your Roth IRA is your own, your cash grows tax free, and once you withdraw, you pay no taxes. The whole sum goes directly into your pocket. You may contribute to a Roth IRA at all ages provided that you have earned income from work. Nevertheless, there are income eligibility limits. As an example, if you create too much money, you cannot contribute to a Roth IRA.

Given the annual median family income of about $50,000 many Americans do qualify for Roth IRA contributions. There are various other benefits of a Roth IRA that make this retirement vehicle so attractive. A clear advantage of a Roth IRA is tax free compounding, which suggests you will not be paying taxes on any capital gains or dividends on your investments while it is growing in your Roth. A major advantage to other comparable investments vehicles. Furthermore, any qualified withdrawals you create during retirement are tax free with some minor restrictions on those withdrawals.

Open a Roth IRA today on our Betterment AI platform and start saving for your retirement now! Start with a Basic Subscriber Membership which provides advisory services for a portfolio size of up to $25,000 for only ten dollars a month.