Banking on Love: Smart Investments For A Happily Ever After

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By Mia Bolaris-Forget

Ask anyone you know and they’ll tell you that even with all the fun and excitement, planning for your big day, can sometimes be draining, especially on your bank account. In addition to making your “Big Day” a priority, you should also make your future a priority and start thinking about how to get your money’s worth from your marriage.

Remember, even if you just got engaged and “need” at least a year to plan for your wedding, it’s never too early to start saving. In fact, financial aficionados suggest young men and women start investing in their future well before they invest in each other.

Making smart financial decisions can range from playing the market, to simply pooling your resources. Whatever shape or form it takes, it’s highly recommended you do your homework and get some professional advice. A few professional pointers include:

Outline Clear Objectives: Have a goal in mind FIRST. This experts note is a key determining factor in investing your money, giving you a picture of what you have to work with, how your want to invest and what you anticipate/expect from your investment. They also emphasize ensuring you have enough financial resources to cover between three to six months worth of living expenses; anything above this figure is ideal for investing.

Stocks (despite their) are recommended one of the most viable investment options offering a higher yield than saving accounts. Still, professions warn against “hot tips” from friends. They suggest accounting for your own goals (and needs…such as long-term savings, children’s education funds, or retirement benefits) first.

Newbie investors are advised to seriously consider mutual funs. According to experts, this type of investment allows you to build a diverse portfolio of stock and bonds with the added assistance of a professional….and they note, that it’s primarily the management and guidance you are paying for.

In today’s market, the options are ample and so are the possibilities. They key to choosing right is understanding each investment and feeling comfortable in what’s it’s providing for you. Industry authorities say that a long-term (growth) goal may be met with a growth-oriented mutual fund. Despite some potential fluctuations, you can still do well over an ample time span.

The fund manager is generally in charge of helping you select your investment funds, but you can research its progress and performance online, in the paper or by checking a particular fund’s company website.

If you are uncomfortable with someone else influencing and controlling your financial future but are not completely secure in trusting your own investment abilities or judgment, you may want to investigate index funds, funds whose growth is contingent on the performance of all stocks in the index

Financial experts say, once you’ve developed a knack and an assurance about investing (on your own) you can start branching out by making individual investments. But, remember to do your homework. Investigate the company and track it’s (stock) performance before investing your money. They also recommend investing in a good investment guide and getting a handle on the basics.

The Key To Success: Professionals point out that simply investing is not good enough. In order to be successful, you have to be determined. They say, while you don’t want to spread your money too thin, you do want to have diversity in your portfolio, and you do want to be disciplined about making frequent contributions.

According to experts on way to ensure adding to your investment is via dollar-cost averaging. This method allows you to invest the same amount each month usually by having the amount deducted directly from your paycheck or bank account and into a fund.

Working Toward Your Future: Special investment options such as the 401(k) allows you to literally work toward your future. This retirement plan is offered by most companies and allows you to invest between 10- 15 percent of your pretax income to a retirement fund. Some companies may even offer to match a portion of your contribution…and if you’re employed by a non-profit organization, you may be entitled to a similar plan, known as a 403(b).

If you don’t have a 401(k) at work, experts suggest investing in a Roth IRA. This tax- deductible retirement fund utilizes after-tax money for retirement savings and can be opened in lieu of or in conjunction with a 401(k). Both the Roth and Deductible IRA have caps that depend on how much you earn.

Experts further emphasize that the sooner you start contributing to your retirement fund, the more (financially) secure you’ll be when you ARE ready to retire. They note, that besides requiring that you change your investment habits, you may also have to change your thinking. Investment (especially those focusing on the long-term future) are often subject to fluctuations. Your focus should remain on the long-term and the probability for the market to “turn around”.

Invest in an Investment Professional: No matter how much you have available to invest, a trusted professional can be essential for direction toward the road of success.

If you can’t afford a financial advisor, at least take the time for a consultation to point you in the right direction. Make sure you all bond with each other and that the person who is advising you understands your wants and needs, and is willing t help you achieve them. Also make sure you all have a good relationship and that your planner but before making your final decision, make sure you are confident in him/her.