Experian March 27 Credit Chat: Investing 101

Experian March 27 Credit Chat: Investing 101

by Julie Jason on Apr 5, 2019

Investing 101: Ways to Make Your Money Grow

Thank you to Experian for hosting the Wednesday, March 27 #CreditChat on investing, and for inviting me to be a panelist.

In case you missed it . . .


@Experian: Let's start! Q1: What does it mean to invest? 

@RetireSecureNow: A1: When you are investing, you are not spending money or giving it away; you are putting it to work. Read Section 4, “Investors: Read Before You Buy or Sell” of my book, Retire Securely. http://tinyurl.com/y9bf42c6

@RetireSecureNow: A1: Investing can potentially produce three outcomes: 1) grow your capital, 2) create income for you, or 3) preserve your capital. An investor chooses different types of investments based on the outcomes he or she wants to achieve. https://www.forbes.com/sites/juliejason/2018/10/27/are-you-an-influencer-do-you-know-someone-who-just-started-working-you-can-make-a-difference-today/#269af573e24b


@Experian: Q2: Is investing a good idea? 

@RetireSecureNow: A2: Investing is an essential activity for anyone who wants to retire someday. We’re living longer, pensions and Social Security will not produce enough retirement income. The only way to achieve security in retirement is to learn how to invest wisely. http://tinyurl.com/y9bf42c6

@RetireSecureNow: A2: The best way to grow capital over time is to invest in the stock market – but you have to learn how. The most important advice I can give you is to learn, learn, learn. Start today. Never stop. https://www.forbes.com/sites/juliejason/2018/10/27/are-you-an-influencer-do-you-know-someone-who-just-started-working-you-can-make-a-difference-today/#269af573e24b


@Experian: Q3: Can you invest while you’re in debt?

@RetireSecureNow: A3: If you wait to invest you lose the leverage of time – something you will never ever recover. Time fuels compounding, which is the “interest on interest” that makes even lower income earners potential millionaires. So, do both: invest and pay off debt. https://www.forbes.com/sites/juliejason/2018/10/27/are-you-an-influencer-do-you-know-someone-who-just-started-working-you-can-make-a-difference-today/#269af573e24b

@RetireSecureNow: A3: Like all financial decisions, this one needs to be put into context. Successful investors can walk and chew gum at the same time. Both goals (pay off debt and invest) need to be funded at the same time. http://tinyurl.com/y9bf42c6

@RetireSecureNow: A3: When you have debt, lower your spending, increase your savings and set up two habits: 1) invest and 2) pay off your debt at the same time. Do not wait until you pay off your debt. You will regret losing compounding. https://www.juliejason.com/blog/market-math-engaging-young-workers-save-retirement


@Experian: Q4: What are the best types of investments?

@RetireSecureNow: A4: If you are eligible for a 401(k), maximize that first. When investing for retirement investing in stock index funds through payroll deductions over a long career works well. Don’t stop during stock market declines. https://www.juliejason.com/blog/market-math-engaging-young-workers-save-retirement


@Experian: Q5: When should you start investing?

@RetireSecureNow: A5: Start investing as soon as you begin your first job. There is no reason to delay saving and investing for retirement and there is every reason to start early to take advantage of compounding, which can be accelerated through a 401(k) with a match. https://www.forbes.com/sites/juliejason/2018/10/27/are-you-an-influencer-do-you-know-someone-who-just-started-working-you-can-make-a-difference-today/#269af573e24b

@RetireSecureNow: A5: If young workers wait to start investing for retirement they’ll lose the leverage that time gives them. You’ll never be your age again. You don’t want to regret, as many retirees do, that they didn’t start saving early enough. http://tinyurl.com/y9bf42c6


@Experian: Q6: How do you invest in stocks?

@RetireSecureNow: A6: When investing in stocks and dealing with your investments in general, you must be a “detective” – always investigate before you invest. Read Section 4, “Investors: Read Before You Buy or Sell” of my book, Retire Securely. http://tinyurl.com/y9bf42c6 


@Experian: Q7: What is the difference between saving and investing? 

@RetireSecureNow: A7: Big difference. When you don’t spend, you save. What you save, you can put that money to work by investing. Read Section 4, “Investors: Read Before You Buy or Sell” of my book, Retire Securely. http://tinyurl.com/y9bf42c6

@RetireSecureNow: A7: If you have a job, you can choose to use some of your pay to make purchases of consumer goods. Anything left over creates “savings.” When you have savings, you can to put it to work for you by making investments. https://www.juliejason.com/blog/market-math-engaging-young-workers-save-retirement


@Experian: Q8: What are some low-risk investment options? 

@RetireSecureNow: A8: Wanting low risk means what? Being afraid of losing money? Not willing to learn how to invest? Too busy to monitor investments? To lower risk, you have to study how to invest.

@RetireSecureNow: A8: The lowest risk investments are US T-Bills, followed by bank CODs. In low interest rate environments, they are not useful for growing your capital. However, there are times, like the late 1970’s and early 1980’s when T-Bills yielded more than 10%. http://tinyurl.com/y9bf42c6


@Experian: Q10: Any final tips on how to make your money grow? 

@RetireSecureNow: A10: You can’t grow your money if you don’t understand your consumption habits. Review your household expenses periodically. Financial peace of mind in #retirement (and before retirement) starts with a budget. https://www.juliejason.com/blog/peace-mind-retirement-starts-budget

@RetireSecureNow: A10: Reviewing expenditures against income is a basic first step toward retirement security. Peace of mind in retirement stems from knowing how much you can “afford” to spend – contrast how much you “want” to spend. http://tinyurl.com/y9bf42c6


To follow along with the next #CreditChat, follow me on Twitter at @RetireSecureNow.

To stay up to date on content and news like this, subscribe to my newsletter and bookmark my blog.

To learn more about investing at any stage of life to prepare for retirement, be sure to check out my latest book, Retire Securely: Insights on Money Management from an Award-Winning Financial Columnist on Amazon, now available as an eBook and an audiobook.