Is Saving More Your New Year Resolution?
Then, you might want to know these money saving tips from Michael Fischer, author of Savings and Investing.
1. Use Government Tax Incentives
The government wants us to save. If we save money in a pension plan like a 401k and we are in a 25% tax bracket, $75 immediately turn into $100 in the plan and we can have the money grow tax free as well.
2. DiversifyBy diversifying and mixing two investments that we have strong reasons to believe will both rise in the long-term, but that do not move perfectly together in the short term, we can reduce the risk of the investment much more than we are reducing returns. Conversely, we can increase returns by not taking on much more risk. This makes a strong case not to put all of our eggs in one basket — i.e. The US stock market, bonds, commodities, real estate, cash ,hedge funds etc.
Full press release.
(image from new-year.co.uk)
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