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Where to Invest Your Money in 2010

Smart investing tips for the new year and beyond.

By
Laura Adams, MBA
5-minute read
Episode #157

What is a Good IRA Investment?

A good IRA investment might be a target date exchange-traded fund (ETF). They’re called target date funds because you choose one that’s closest to the year when you plan to retire or access the money. For example, if you’re 35 years old and want to retire in 2040, you could choose the iShares S&P Target Date 2040 Index Fund which trades as symbol TZV. Target date funds are very convenient for many investors because they automatically rebalance on a periodic basis to achieve growth in the early years and capital preservation as you approach retirement.

Recommendation #3: Invest in a Taxable Brokerage Account

The third best investment option is a taxable brokerage account. You can open one with brokerage companies or online sites like the ones I previously mentioned. Consider making taxable investments only after you’ve maxed out contributions to your workplace plan or IRA.

Quick and Dirty Tip: Invest Early

The most important point to take away from this article is that you should start investing early and consistently. Investing less money sooner, rather than more money later, is the secret to investment success. Investors who start late usually have to make huge financial sacrifices to accumulate enough money to reach their goals.

Invest More This Year

If you have a workplace plan, consider increasing your contribution by one percent. Ask your benefits administrator for the form to sign up or to increase your current contribution. If your best investment option is an IRA, get it set up for a recurring electronic deposit from another account. Find the grit and determination to always invest at least 10% of your income. I want to challenge you to stay ahead of the financial game by investing more this year.

Again, this post is the third in our five-part series about taking charge of your finances in 2010. Each article in the series is about a pillar of personal finance—setting goals, saving, investing, being properly insured, and reducing your taxes.  Please click on the links to head over to the other episodes.

And, please, get more advice on investing with my Quick and Dirty Tips compatriot, The Winning Investor.

Money Girl Contact Info

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More Resources:
IRA Contributions: Deductions And Tax Credits
Money Girl Guest Post on We The Savers

Where to Invest image courtesy of Shutterstock

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.