Investments Tips For College Graduates Annapolis MD

Nowdays, there are more and more newly-graduated students starting the investment. New graduates should max out their 401(k) plans and stay informed of market trends. Here are tips for college graduates.

Local Companies

The Kairos Group LLC
410.263.8125
1612 McGuckain Street
Annapolis, MD
Peter J D Gordon Inc
(410) 626-0884
47 State Cir
Annapolis, MD
Hillman Capital Management Inc
(410) 269-7783
613 Third St
Annapolis, MD
Atlantic Investment Group
(410) 267-6464
176 Conduit St
Annapolis, MD
Riordan Investment Management
(410) 268-6220
1206 Poplar Ave
Annapolis, MD
Merrill Lynch Pierce Fenner & Smith Inc
(301) 261-1740
60 West St Ste 300
Annapolis, MD
M & M Real Estate Services
(410) 267-9600
421 Fox Hollow Ln
Annapolis, MD
Foran John A
(410) 721-8883
133 Defense Hwy Ste 107
Annapolis, MD
Main Street Financial Services
(410) 221-0885
511 Court Ln
Cambridge, MD
Growth Stock Outlook Inc
(301) 654-5205
4405 E West Hwy Ste 305
Bethesda, MD

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Investing and trading are like smoking.  Both are addictive and can change the quality of your life.  For the college graduate, here are five tips to starting a financially-healthy life:

1.  Max out your 401(k)

This is the best way to get FREE money.  Most employers will match your contribution up to a certain limit.  There is one main choice in this area:  Traditional or Roth.  A traditional plan will take the deduction out of your paycheck before taxes; a Roth plan after.  If you are just getting out into the world on your own and are strapped for cash, a traditional plan is advisable.  It allows you to take home the maximum amount of money each month.  The downside to this is that you will be taxed later in life when your individual tax rate may be higher. 

Here's a quick example:  Your paycheck is $1,000, contribution rate is 10%, and tax rate is 20%.

Individual Retirement Account- Traditional:  ($1,000 - ($1,000 * 10%) = $900 - ($900 * 20% tax) = $720 take home pay

 

Individual Retirement Account - Roth:  ($1,000 - ($1,000 * 20 %) = $800 - ($800 * 20 % tax) = $640 take home pay

 

2.  Know Yourself

Picking individual stocks to invest in requires time for researching and analyzing different stocks.  If you are not willing or able to put in the necessary time for research, let someone else do it for you.  There are several avenues you can take in the mutual fund and 401(k) world.  This will allow you to pick the general investment sectors, areas of the world, and risk level you want to invest in, but a professional will take over from there.

Featured Local Company

The Kairos Group LLC

410.263.8125
1612 McGuckain Street
Annapolis, MD

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