A Financial Planner’s Best Advice About Saving Money After Age 30

Diversification: Not having all your eggs in one nest

Everyone knows about a 401(k)s and how they are vital for one’s retirement years. This employer-sponsored plan needs to be taken advantage of in conjunction with your own personal investing.  You are in charge of your future financial well-being – no one else!

One key misconception people have is thinking their 401k is the only investment savings they need to make going into the middle/late stages of life. This is dangerous. Retirement accounts are a means to save for the future, but not a means to grow wealthy in any substantial way.

Remember that 401(k)s are specifically for retirement. Investing in wealth creation is an entirely different and additional attempt at providing for your future. Another important factor to keep in mind is that retirement accounts are often untouchable until one reaches their 50’s (you can access the cash, but it often comes with penalties). To this end, splitting up your investment portfolio into many different areas lessens the risk you face, not only now but later on in life.

Investments in property and taxable brokerage accounts are viable options, as is looking for extra sources of revenue.