Life Investments You Should Have by Your Mid Years
Different life investments are very important for a person in their mid years, 30 to 40 years old. These different type investments can be a great safety net for someone and their families when an emergency comes about or just to save for different life events. Many people will need a fund for college, retirement, illness and death. Below are a list of life investments that people should consider once they are in their mid years.
1) Purchasing a Home Once a person has completed college and obtained solid income, it may be time to be looking for a home to purchase. This can be an expensive purchase or expense, but it can be one of the best investments that a person makes in their life. If a home is bought at the right time in the market, the value and turn around on the home can be very profitable in the long run. Plus, the security of owning a home can be one of the best feelings.
2) Life Insurance Purchasing life insurance can be a very affordable investment that a person should obtain early on. Life insurance helps protect the person’s family when the breadwinner may pass away. Life insurance in most cases is relatively cheap if bought early on in life. Depending on the policy, the policy can cover a variety of accidents. Since it is hard to tell what may cause our death, it is best to have a policy that offers more variety of coverage.
3) Investing In Stocks The best thing for someone to get a head in life is to create multiple income streams. Investing in stocks is a great option and income stream. It can be a wonderful cushion if for some reason the person ends up losing their job or has an unexpected accident. Making small adjustments to the household budget can create an opportunity to use money towards investment. A couple options a person has are to purchase individual stocks or to purchase the stocks on handfuls. It is best to speak to a stock or financial adviser about different stock options.
4) Retirement Investment One of the most important investments that a person can make in their life is a retirement fund. If the person works for a company that matches a contribution up to a certain amount, the employee should invest the max amount. Even if only saving 100 per month, will save $1,200 a year. If the persons employer matches it, that would be $2,400 a year. After 10 years, that is $24,000 and if invested properly, it could be much more.
5) College Fund Creating a college fund for children is a great way to start saving for education costs that may not be covered by grants and scholarships. This is a safety net for children and their education. It is important for parents to start a college fund early on for their children. There are many different college funds available. It is the best to contact the state education department where the child lives to get the best options available.
