BOSTON (WBZ-AM) -- Stands to reason if you can save more you will now have the cash to invest more.
To invest more we need to go back to saving more money so we have the dollars to invest. So make it as automatic as you can. Using your retirement plan at work is a good beginning. Your employer takes the dollars out of your paycheck and sends them to a 401(k) provider to invest them for you.
Review your asset allocation. Are you too conservative? Or worse, are you too aggressive? A diversified portfolio that’s suited to your investing goals is essential here. Get some help if you are frozen and your money is in the money market.
A Fidelity suggestion for those who are not financial savvy is to consider a target date fund. These are appropriate for your 401(k) plan and IRA. The fund manager selects and adjusts the asset allocation to match a target retirement date.
Pay Down Debt
Most of us owe on a variety of debt; mortgages, student loans, car loans and credit-card balances. Those fixed monthly payments take a big bite out of your income.
Your credit card is discretionary debt. The key is to pay off your balance each month. If you are carrying debt month to month look to pay down the credit card with the highest interest rate first. Pay more than the minimum each month.
Check your credit card statement to see how long it will take you to pay off the balance—and how much it will cost. The statement usually suggests how much you need to pay each month to pay it off completely. Check out Bankrate.com’s calculator on accelerating your debt pay off.
You can hear Dee Lee’s expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m. and 3:55 p.m.