1. A sensible financial safety net
No matter how prepared you are, life can occasionally throw you a curveball. A sensible financial safety net can help you through tough times and can make challenging circumstances just a little bit easier. Experts recommend saving somewhere between three and six months’ worth of living expenses before investing in other projects.
Building up a financial safety net should be your first saving and investing goal, especially if you don’t already have a good chunk of cash stashed away. Short-term investments generally implies a lower risk tolerance, since you may need to access the money in the near future.
2. A down payment on a house
Especially if you’re just starting out on your savings journey, a big financial goal like purchasing a house can be motivating, but also overwhelming. By putting a little aside each month and responsibly investing, you could bring your dreams of home ownership closer to reality. For many people, buying a house is one of the most significant purchases they’ll make in life, so it pays to be prepared.
A good rule of thumb states that you shouldn’t spend more than 25%-30% of your income on a home. Sites like The Mortgage Professor offer calculators to help you estimate how much home you can afford, based on that guideline. Once you’ve determined the total price of the home you think you can afford, take 20% of that number and you have a rough estimate of the down payment you need. This is your savings target.
A down payment is usually a medium-term investment that you’ll need to access in a few years. This means that a moderate risk investment that combines higher return potential with moderate risk could be a good fit for this type of investment.
3. Growing your wealth
Many people turn to investing when they want to grow their wealth. Whether you’re just looking to keep up with inflation or plan to save enough so that you can become financially independent and retire early, investing is a key component of most long-term savings strategies. As with any savings goal, starting early and saving consistently can have a big impact over time. You should make sure to take advantage of any tax-advantaged investing and savings accounts first and invest the rest in non-tax-advantaged accounts.
If you’re interested in growing your wealth over time and have high-risk tolerance, you may pursue an aggressive investing strategy designed to maximize your profits. On the other hand, if you prefer to play it safe, you can invest in lower-risk, diversified, long-term investments.
Investing with Beanstox
Investing doesn’t have to be complicated. But if you need a little help getting started, Beanstox is there to lend a hand. With Beanstox, you can invest in a diversified portfolio managed by professionals, based on your own personal investment goals and risk tolerance.
Beanstox also lets you create multiple investment goals, whether you’re saving for a vacation, a down payment on a house, a new car, or another expense. You can set up automatic deposits in order to keep your investing goals on schedule and take advantage of Beanstox’s educational resources to learn more about investing and wealth management.
According to a 2019 report from CNBC, consumers in the U.S. overspend on average by a jaw-dropping $7,400 every year! With credit cards, pay-later plans, and endless sales, it's easier than ever to join the millions of people who end the year in a financial hole....
A 23-year old teaches Kevin O’Leary, Chairman and co-owner of Beanstox, how to live in Brooklyn on just $50,000 a year. To learn how she does it and get tips from Kevin O’Leary on how to save and invest for retirement and stay out of debt, check out the video....
Probably the last thing on anyone’s mind following the COVID-19 public health emergency (PHE) is doing their taxes. Even though our favorite restaurants and stores might still be closed, the IRS isn’t. Here’s the good news: outside of those in special circumstances or the self-employed, tax time could mean you’ll be receiving a refund.
Beanstox Inc. (“Beanstox”) is an SEC registered investment adviser and has arranged for brokerage services to be provided by DriveWealth LLC., a registered broker-dealer and member of FINRA/SIPC. DriveWealth is not affiliated with Beanstox.
Investments in securities: Not FDIC Insured • No Bank Guarantee • May Lose Value
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and risk tolerance levels and Beanstox’s charges and expenses. The information provided herein is for illustrative purposes only and does not constitute personalized investment advice, recommendations or solicitations to hold, buy or sell any investment or security of any kind. Beanstox’s internet-based advisory services are designed to assist clients in achieving investment goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form ADV Part 2A and Part 3 CRS and other disclosures.
All images and return figures shown are for illustrative purposes only and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market conditions. Past performance does not guarantee future results. Google Play and the Google Play logo are trademarks of Google, Inc. Apple, the Apple logo, and iPhone are trademarks of Apple, Inc., registered in the U.S.
© 2021 Beanstox Inc.