What is the best way to invest money for a long term (retirement)?
First, pay off all short term debt. If you have a credit card interest rate of say, 21%, that’s an instant tax-free return of 21% per year on your money. Next, if your company has a 401(k) with matching funds, fund your 401(k) to the maximum match amount. Free money is good. If your company doesn’t have matching funds, then fund your Roth IRA to its maximum ($4,000). Tax-free growth is good. I’d go with a no-load, low cost mutual fund company, like Fidelity, Vanguard, or T Rowe Price. If you have money left over after you’ve funded the 401(k) to the maximum match, do this step with the extra money. If you *still* have more money for long-term investing, go back to the 401(k) and invest in that up to what you can afford. And get yourself an elementary education in personal finance. You’re going to get a lot advice here, and you won’t know who to believe. Well you can believe this: no one is going to care as much about your money as you are. No one is going to watch it as closely as you
