According to the Urban Dictionary, a fashionista is “a person devoted to fashion clothing, particularly unique or high fashion”. Being interested in fashion and beauty means forking out a lot of $$$$$! Sometimes investing in key pieces of clothing or high brand makeup, means better quality and longer lasting. While spending money in things that make us happy is very satisfying, we tend to forget about our future. The earlier you start investing towards your future, the more money you will have when you retire. But who likes to read about retirement when it’s more enjoyable to read about what the celebrities are wearing, the new clothing lines and the makeup trends?! That’s why retirement investing is simply summarized below, so it won’t take much of your time or effort to start thinking about your future.
Have a 401(k) from your employer? Do an IRA rollover that way you are not restricted to a handful of mutual funds offered in your 401(k). You want to be in total control of choosing the best low-cost investment. Pick a discount brokerage or no-load fund company. Complete an easy rollover application form and choose the option for a direct rollover. Set up an automated monthly investment for the growth portion of your retirement portfolio. The money should be invested in a mix of stocks and bonds, even though how many years you have till retirement determines your risk tolerance. If you are in your 20’s it is recommended that you invest 100% in stocks. However, individual stocks are riskier than mutual funds or Exchange-Traded Funds (ETFs) which include a number of stocks and make a great diversified portfolio. A solid long-term strategy is to put the majority of your stock money in a broad U.S. index fund or ETF and a small portion in an international stock fund or ETF. If you have less than 20 years into your retirement start thinking about investing a small percentage in bonds, but it is recommended to invest in individual bonds rather than bond funds. A high quality bond will get the amount you invested back once the bond matures. During the time you own it, you also collect a fixed interest for all those years. Stick to bonds and Treasury notes that mature in 5 years or less to avoid higher interest rates in the future.