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Bottom Line Up Front

  • It pays to invest if you want to build your net worth.
  • You can contribute to your 401(k) or start your own IRA, but always do your research when considering different types of investments. Remember to look at diversification, risk tolerance and time horizon.
  • Consult with a trusted financial advisor or stockbroker when it comes to investing and update your investment plan on an annual basis.

Time to Read

2 minutes

Successful investing is key to building wealth, so it’s important to make the most of your investment accounts with thorough investment advice. Whether you're an established investor or a beginner just starting out in the stock market, our investment strategies can help with your investment plan so you can earn higher returns and grow your nest egg.

Contribute to Your Employer's 401(k)

Get a jump-start on retirement savings by enrolling in your employer's retirement plan. If your employer offers to match your contributions, say at 2 percent, then contribute at least 2 percent yourself. Remember—you're doubling the amount of money you’re investing. 

If your employer doesn't offer a retirement plan, start your own traditional IRA or Roth IRA. Or, if you're self-employed, start your own SEP retirement plan.

Do Your Research

You can choose to invest solely in stock or in mutual funds, or choose from different types of investments such as certificates, annuities, bonds, education funds, index funds and exchange-traded funds. When it comes to choosing an individual stock or asset class to invest in, consider the brands and products you like. There are a number of investment options to choose from, all with the purpose of growing your net worth.

Find a Trusted Broker or Use a Robo-Advisor

Consult an investment advisor or stockbroker about your personal finances and discuss how much risk you’re willing to take for your anticipated time horizon. You'll also want to look at a "prospectus," which gives you an overview of how a stock or fund performs. Based on your risk tolerance and your short- or long-term goals, your stockbroker can help you build a portfolio by advising you on specific financial products. You may even consider a robo-advisor to provide financial advice or investment management online if you’re investment-savvy.

Diversify Your Investments

Investing can take many forms—certificates, retirement accounts, education savings accounts, stocks, bonds, annuities. Diversification of your investment portfolio or brokerage account can give you a good range of profitability. Speak with a trusted broker or financial advisor to learn how to build a strong portfolio based on the level of risk you’re willing to take.

Focus on Liquidity

We all know emergencies arise and market conditions change, and this can take a toll on your investments. That's why it's a good idea to have liquid assets that you can access easily or sell quickly. Liquid assets may come in the form of stocks, bonds or a traditional savings account used as an emergency fund.

Review Your Investment Portfolio Yearly

No matter how comfortable you feel with the investments you've chosen, you'll want to review your portfolio yearly. Market conditions, investment performance and even your income can all change, so reviewing your portfolio allows you to make adjustments that will keep it in line with your wealth-building goals.

Next Steps

  1. A bit of professional guidance will go a long way in ensuring that you meet your long-term financial goals. Contact one of our Navy Federal Investment Services financial advisors for a free consultation. 
  2. Try our Digital Investor to test out online trading yourself. 

Disclosures

Navy Federal Financial Group, LLC (NFFG) is a licensed insurance agency. Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services, LLC (NFIS), a member of FINRA/SIPC and an SEC-registered investment advisory firm. NFIS is a wholly owned subsidiary of NFFG. Insurance products are offered through NFFG and NFIS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of Navy Federal Credit Union (NFCU), are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Deposit products and related services are provided by NFCU. Financial Advisors are employees of NFFG, and they are employees and registered representatives of NFIS. NFIS and NFFG are affiliated companies under the common control of NFCU. Call 1-877-221-8108 for further information. 

This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.