So I spent the morning in our bank credit union, working out details of the best way to safeguard the money we’re saving for the kids’ education. I selected the 529 savings plan and made various choices about the ways to invest the money within that plan (based on my kids’ ages, the level of risk involved with the investments, etc).
Though I’d done my homework before I met with the investment guy, I still felt unsure about some of the details and deferred to his expertise at various points. I came away pleased about the decision to open the accounts, but also self-critical about the fact that I’d also been ‘sold’ a particular investment product when I wasn’t completely sure about all of the details.
I feel that I need to become more savvy about investments. I know just the basics and use this knowledge to make what I hope are wise decisions. But perhaps the rest of you have some financial gurus that you trust? Can you point me to where you look for advice on investments and money management solutions?
2 comments
YAY for 529 plans. Getting to have a 529 plan for posterity will be one of the most exciting things about having children for me!
It sounds like you are already right on track because you realize that investment agents are salesmen. For the future, if your investment agent isn’t ok about you taking a few days – or even a few weeks – to think about and research the plans he/she has offered, then you should find another agent. They shouldn’t pressure you into immediate decisions. Knowing how your agent is compensated (i.e., salaried, or by commission based on what you earn, or referral fees from other companies) is also good to know, so you can understand his/her motivations to push one plan over another.
I think the general concepts to consider when choosing investments are what they will be used for, when you will need them, how vital they are to your well-being (which will help you determine how much risk you are comfortable with).
I love the “for dummies” series and have skimmed the Investing for Dummies book and was impressed.
Jana, from what I know of your personality I’d guess you favor pretty conservative investments. On the one hand, don’t let someone bully you into taking more risk than you are comfortable with. On the other hands, the greater the risk, the greater the potential reward – so if you don’t need the $ for a long time, a little risk isn’t a bad thing.
Whoa! Obviously you found one of my favorite subjects to talk about. I think my response is longer than your original post – sorry! :-)
Personal Finance for Dummies is a great starting point. It incorporates basic personal finance ideas, builds you up to a philosophy of investment, and gives you a grounding in why you would choose certain options over others.
journygal: I think you can open a 529 plan and designate whomever you want as the beneficiary. I was thinking of doing that for myself, actually.