Making Sense of Investing

If you’re in your 30s or 40s, the phrase “start investing” might be lurking on your to-do list somewhere between “book that dentist appointment” and “figure out what an ETF is.” I understand that life is busy, money feels tight, and the stock market has both a real and mythical quality about it like the North Pole or the Bermuda Triangle. We all know it’s there, but we don’t fully know what goes on there.

Here’s the thing, investing isn’t just for influencers and people taking short visits to space. It’s for you, the career builder, the mortgage juggler, the person who’d like to eventually retire somewhere that doesn’t have a breakroom.

 

How Much Should You Actually Be Investing?

A good general rule is to try to invest 15-25% of your income towards long-term goals like retirement. That might sound like a lot, but this isn’t an all or nothing game. Start where you can. Make investing a priority in your budget (above Netflix and even above Apple TV+). This is called paying yourself first. The earlier you begin, the more time your money has to grow—thank you compound interest!

 

Choosing the Right Investments

From stocks to bonds to mutual funds to ETFs, the choices can feel like you’re staring at a financial Cheesecake Factory menu. Here’s a brief breakdown: stocks come with more risk and more potential growth, bonds are the slow-and-steady type, mutual funds give you a mixed basket, and ETFs are like mutual funds but they trade like stocks and usually have less fees.

One of the easiest ways to get started? Your workplace retirement plan. If you have access to a 401(k) or similar plan with employer matching, use it. That match means you’re doubling your money immediately!

I touched on this earlier, but you don’t need a fortune to start investing. Some stocks let you buy fractional shares, while other options like mutual funds or ETFs may require a bigger buy-in. There are options for every budget. The key is to just start.

 

Stocks vs Shares: Let’s Clear It Up

Quick cheat sheet: owning “stock” means you have equity in a company. A “share” is one slice of that equity pie. So if you own a share of Apple stock, you technically own a tiny part of Apple.

 

Crash Course: Bonds, Mutual Funds, and ETFs

• Bonds = you lend money to a company or government, and they pay you back with interest
• Mutual Funds = a group project where your money teams up with others to invest in a mix of assets
• ETFs = like mutual funds but you can trade them throughout the day like stocks

Each one has its pros, and picking the right combo depends on your goals and risk appetite.

 

When (and How) You Can Get Your Money

Investing is not your emergency piggy bank. We’re thinking long term with this money. Yes, you can access these funds but depending on the investment, cashing out early might cost you. Plan ahead with an emergency fund so you’re not forced to sell at a loss or incur fees when your car battery dies.

 

Start Now, Thank Yourself Later

Investing isn’t about getting rich overnight, it’s about building the life you want down the road. Find the funds in your budget and make your future self a priority. If you want someone in your corner, a financial advisor can help you navigate the maze by working with you to create a plan that is specific to your goals.  

 

 

You can do it,

Chandler