You know you need to invest financially in your future, but where do you start?

We’re here to help simplify the concept and take you to square one! We’ll help you weigh your options and remove some of the mystery so you can discover the best way to start investing in your future today.

Let’s take a look at some of the different personal investing tools you have at your disposal right now.

Money Market Accounts: Money market accounts often have a higher rate of return than a standard savings account, though typically lower than a CD. Depending on the financial institution, you may be able to use checks to make payments up to six times a month without incurring a penalty. These accounts keep your money liquid, meaning you can withdraw it when necessary, which makes them a great place to start investing your money.

Certificate of Deposit (CD): CDs usually offer higher rates than money market accounts and regular saving accounts. However, your money is contractually locked into the CD for a specific term. If you need to make a withdrawal, you will typically need to pay a fee to break the contract. This allows financial institutions to rely on those deposits for loans in exchange for the higher rate. If you have funds you know you won’t need for emergencies or purchases, a CD is a great way to safely invest and save.

Individual Retirement Accounts (IRA): IRAs are tax advantaged and allow you to save for your retirement. The most common types of IRAs are Traditional and Roth.

• A Traditional IRA is generally not taxed until distribution. Contributions are tax deductible for many taxpayers.
• Roth IRA contributions are made with after-tax income. Earnings then are distributed tax-free if certain conditions are met.

Broadly speaking, if you think your tax rate will be higher later in life, a Roth IRA might make sense. If you think your tax bracket will be lower, a Traditional IRA may be the way to go. Speaking with one of our member service representatives is a great way to get started down this path.

Nerdwallet has a great overview on the rules and regulations of IRAs.

Whatever path you take, now is the time to start investing in your financial security! and we’ll help you take that first step off square one!

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