Investing is another tool to use to ensure your financial future will meet your needs.
Watch our workshop on Investing
Do not be afraid
The investment world can sometimes seem complex and scary with many voices out there telling you how and with whom to invest. There is
uncertainty in markets and economies, and many are unsure how to effectively invest. Investing doesn’t need to be this complicated or intimidating.
A few key things will help you become and be a successful investor.
To begin with, take advantage of the "free money" available through your employer-provided savings plans which include employer-provided
matching contributions. These plans also provide opportunities to properly diversify your investments.
How to proceed
A few key things will help you become and be a successful investor.
-
Create an investment policy statement. Our Investment Policy
Statement form may help you decide on your investment philosophy, your investment management procedures, and your long-term goals.
You can also consult with your Financial Coach and adjust your investments accordingly.
-
Make sure that you are getting the full employer match through your employer provided savings plan.
-
Decide whether to contribute in a before-tax or Roth investment option. Use our Roth 401(k) vs. Traditional 401(k) calculator
to explore your options to decide if the before-tax option or the Roth after-tax option best for you.
-
Make sure that you have the appropriate investment mix for your risk tolerance and time frame.
-
If you have further questions, you may discuss this with a DMBA Financial Planner.
-
Diversify investments to help minimize risk. Use a mix of investments tailored to your investment policy statement and investment time
horizon (the length of time your money will be invested). Keep your funds invested until you really need to start using your funds.
The Desert 401(k) Plan offers preset investment mixes to help you tailor your investments to your investment time horizon.
-
Don’t be reactionary with your investments. Only make major changes to your investments based on the commitments you record in your
investment policy statement. Don’t shift your investments based on the fluctuations of day-to-day markets or economic news.
After you begin investing, find your Core Financial Principles Task Checklist and check off “Invest.”
Resources