Investing your money is a great way to double it, and many people find it enjoyable. The rule of 72 is a formula used to calculate the number of years it will take to double the money invested with an annual rate of return. In the digital age, virtually any topic can be made profitable. Employer-sponsored retirement plans offer an equivalent employer contribution of 50% up to an employee contribution of 6%.
It is important to consider fund fees, which can really affect your 401 (k) plan. Options like Blooom are useful for analyzing 401 (k) plan fees and ensuring that your investments are optimized. Paying off high-interest debt is one of the best investments you can make, as it ensures a high rate of return. Automated advisors can be used if you're not comfortable creating and managing your own investment portfolio.
Dividend Aristocrats are well-known companies that have been paying regular dividends for decades and increasing them for at least 25 years. Money from an account can be withdrawn tax-free for education expenses, but if used for other purposes, withdrawals will be taxable and subject to a 10% penalty for early withdrawal. Mutual fund fees can go up to 3%, reducing the return on your investment. If you have a high risk tolerance, you may want to invest a very small percentage of your portfolio in cryptocurrency, but no more than 5% or 10% of the total value.
