Kelan Combe, Program Coordinator, Empowering Financial Wellness For most people, investing can be a very daunting task. It can feel overwhelming to research different funds or investments, manage risk, and make sure your investments are diversified. However, there are investment options to help make this process simpler. One of these options is called a target-date fund.
Before I go on to explain what a target-date fund is, I want to clarify that we at Utah Money Matters are not financial advisors, and nothing in this article is intended to be specific investment advice. We do not recommend or endorse any specific investment. Our goal for this article is intended to be informational only, and we recommend that you do your own research, and/or speak to a financial advisor before making personal investment decisions. A target-date fund is a type of mutual fund, or a collection of different investments and investment types, that is made to grow for a specified period of time, for example, for the next 30 years until retirement. The purpose of a target-date fund is to automatically adjust investments and risk over time so that the closer you get to your target-date, the less risk your investments have. Think of it like a pilot guiding a plane into a runway. The closer they get to the runway, the more level and slower they have to make the plane so that it doesn’t crash into the runway. A target-date fund does this by shifting from higher-risk, higher-return assets to lower-risk, lower-return assets such as bonds as the target-date nears. Advantages of a Target-Date Fund
Target-date funds can be a valuable investment strategy for those looking for a convenient, hands-off approach to managing risk, but it is important to do the research to make sure you are comfortable with the risk and specific investments of the target-date funds you choose. For more information, check out this article from the Financial Industry Regulatory Authority (FINRA). You can also research specific target-date funds at https://tools.finra.org/fund_analyzer/ and https://finance.yahoo.com/.
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Vincenza Vicari-Bentley, AFC Empowering Financial Wellness Lead Program Coordinator Both Roth IRA and Traditional IRA have their own advantages and disadvantages. The best choice depends on your current and future financial situation, tax bracket, and goals. Yes, you can have both at the same time. However, your total contributions to both accounts cannot exceed the annual contribution limit set by the IRS each year.
May marks the beginning of warmer weather, summer barbecues and celebrations recognizing the end of another school year. As you enjoy this month, join my529 in celebrating National 5.29 Day by taking advantage of a special offer. my529, Utah’s educational savings plan, has been helping families save for education for more than 25 years, and we take part in National 5.29 Day by making it easier for you to invest in the future.
A special offer We are celebrating 5.29 Day for the entire month. Open a new my529 account between May 1 and May 31, 2022, and you could be eligible to receive up to $40 contributed to your account. Find more details and information about this offer at my529.org/529-day. Scholarship opportunity In addition to National 5.29 Day, my529 and the Utah State Library are once again partnering this year to offer the Book Your Summer reading award. Book Your Summer is an opportunity to get your children reading all summer while entering your name in a random drawing for one of four $1,000 my529 college savings scholarship accounts. Amanda H. Christensen, AFC, Extension Associate Professor Utah Money Moms Editor ![]() Is it really worth the hassle to sit down with your teen and fill out a 1040 Form in addition to worrying about your own taxes this time of year? Y.E.S. Today I'm sharing three reasons why the benefits of teenagers filing a tax return for their seasonal income working summer or holiday jobs is well worth the minimal hassle. Here's some need-to-know personal finance knowledge if you're the parent of a teen. When do Teens Have to File a Return? Americans are legally required to file a federal return when they make at least the standard deduction for the 2021 tax year which is $12,550. Earn less than that, as many teenagers do, and you don’t have to file.
KristiLyn Wilkinson, AFC Candidate, Empowering Financial Wellness Program Manager ![]() Here at Utah Money Moms we spend a lot of time telling you how to save your money, increase income, decrease expenses, spend according to your financial values, and reach your financial goals. Unfortunately, if you lose your hard earned money in an investment scam that work is all for nothing. We need to be smart about saving, spending, and growing our money! I worked for four years as a securities fraud investigator for the Utah Division of Securities. This Halloween season I don’t want to scare you away from investing, or create fear surrounding money, I want to arm you with the tools to make good financial decisions surrounding the money you invest! The following items are some red flags/things to be aware of to help you avoid investment scams! |
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