Back to top

Client Login

Subscribe to our Newsletter


Click here to go back

Invest In Your Future

Posted by Dairel Denton Posted on July 21 2015

I've been sharing our 8 Steps To Becoming More Financially Sound with you.  Today, I’d like to talk about investing in your future.  You should start thinking about retirement and college planning early.  Investing your money in the right vehicles can really help you reach your long-term goals.

By having your money in an interest-bearing account you possibly could earn more money than just having it sit in a savings account.  You should be familiar with the different types of investments available.  Each one is different and provides their own specific benefits.  It’s important to be matched to the best one for you. 

There are different types of investment accounts available, here are a few:

401(k) through your employer

Majority of employers offer a retirement plan for their employees.  These plans are typically a 401(k).  Many employers will match a portion of your contributions.  If you don’t participate, it’s like passing on free money.  For example, an employer may match 3% of your pay if you put in 3%.  So it’s like saving 6% of your income for only half the cost.

401(k) plans offer tax-deferred earnings.  That simply means you start paying less in taxes because your contribution comes out of your paycheck before any income taxes are deducted.  Therefore your taxable income is less, which helps to lower your tax bill.

Most offer a variety of investment vehicles to choose from inside the plan.  Which gives you more control over the level of risk you want to take.

Mutual Funds

Mutual Funds give investors a piece of the bigger pie.  They help investors with asset diversification, which involves the mixing of differing investments within one portfolio.  Diversification helps investors manage their level of risk. 

Economies of Scale, which is similar to bulk pricing.  Mutual Funds are able to take advantage of their buying size by offering reduced transaction costs for investors.  Reduced costs make it easier for individual investors to get more bang for their buck.


Stocks are a form of ownership that the investor has in an organization.  Many people like the idea of owning a piece of a certain company, like Disney or Pepsi.  Stocks can also pay a dividend to their investors, which is related to the company’s performance. 

Stock prices can vary dramatically if the company is in a decline or incline.  There is no guarantee of value and if the company goes under there is no guarantee of payment. 


Bonds are a form of debt with which the investor is the lender.  They are a loan made between investors and organizations, which will repay the loan amount on a premium.   If for any reason a company should go bankrupt, bonds are repaid to the extent of the company’s capital. 

Individual Retirement Account (IRA)

The IRA accounts are unique.  There are two different types, Traditional and ROTH.  Contributions made to a Traditional IRA can be deductible on your individual tax return if your adjusted gross income falls below certain limits.   While contributions made to a ROTH are not tax deductible, their qualified distributions can be tax-free. 

It’s important to talk with your financial planner about which investments are best for you.  If you don’t have a financial planner, give me a call at 573-686-3053.  I think it’s best to sit down with a financial expert to have a conversations.  You and I can discuss what you want your money to do. From there we can create the best financial plan for you.