6 Strategies for Long-Term Saving

 

Setting out on a long term saving plan is a unique kind of adventure. With long term savings, you'll want to plan for eventual gains and yields that will help you beat inflation and grow money over time. You'll also want to plan for consistency and a reliable result. Here are some ways to boost the success of your long term savings plan.

1. Look at IRAs and 401k Options

If your employer offers a 401k or matching funds option, this can be a perfect way to set up long term savings. You can even get some of these deposits automated to make saving even easier. For those who don't have access to a 401k, an IRA or individual retirement account can be a way to save bigger retirement tax-deferred investment into an account that will include limitations on withdrawals.

2. Set Savings Goals

No matter what kind of long term savings plan you're setting up, having eventual goals is important. Whether you're considering long term investment to try for gains, or a stable, simple option that will be there years down the road, look at what you can consistently deposit and how you will keep that money safe.

3. Look for Good High Interest, Low-fee Savings Accounts

When you're setting up an account to hold your savings, you'll want something offers an ongoing high interest rate, so that your money grows at a certain rate. You'll also want to avoid accounts where some of your savings is chipped away in the form of bank fees. Ask the bank about how teller visits, balance requirements or other aspects of your account may be vulnerable to fees, and look around for the best interest rates for your long term deposits.

4. Think about Real Estate 

A huge community of long term savers put their money into real estate. That's because the rising prices of properties over time help to handle inflation, when the dollars you deposited in years past end up getting less valuable due to rising costs of living, currency devaluation or other long term factors.

5. Make a Commodity Play

Some idealistic savers want to make their savings into something else besides dollars. For some who aren't connected to the general financial market, that might mean buying gold bullion and storing it in a safe deposit box, but that's not the only option for investors in today's modern financial world. Products like commodity ETFs allow you to invest in a basket of commodity-based securities that, with proper administration, should go up in value as those commodities get more valuable. Unlike more traditional products, ETFs can also be bought and sold during trading days over online brokerage accounts.

6. Look at Conventional Accounts vs. Money Market Accounts

Money market accounts are a new way for banks to offer slightly higher interest rates to savers. The only condition on these accounts is that they are vulnerable to some kinds of theoretical loss in extreme market conditions. Ask your bank about how the FDIC treats your particular savings accounts in order to know whether your money will be safe in market crash scenarios.

Think about all of the above when you're setting up your long term savings plan for building up an emergency fund that will be there for you later in life.

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