Long-Term Compounding Can Be Meaningful
It’s the “rolling snowball” effect. Put simply, compounding pays you earnings on your reinvested earnings. The longer your money works for you, the more exciting the numbers can become. Fenimore’s Investor Relations teams are available to help you prioritize your long-term financial goals and fine-tune your investment strategy.
Whether you are starting your first job, preparing for a child’s college expenses, or planning for retirement, we’re here to help.
02 THERE’S STILL TIME — MAKE YOUR 2021 IRA CONTRIBUTION
Investors have until the tax filing deadline of April 15, 2022, to make a 2021 Individual Retirement Account (IRA) contribution. IRAs are one of the most powerful retirement savings tools available. An IRA is a personal savings plan that offers specific tax benefits.
- Even if you’re contributing to a 401(k) or other plan at work, you might also consider investing in an IRA.
- The two major types of IRAs are Traditional and Roth.
- Practically anyone with taxable compensation can open and contribute to a Traditional IRA.
- Both Traditional and Roth IRAs feature tax sheltered growth of earnings.
However, there are important differences between these two IRAs with respect to eligibility and taxation.
03 REVIEW YOUR ACCOUNT BENEFICIARIES
Did you know that your beneficiary designations supersede what is written in any legal document such as a trust or will? Therefore, we recommend that you review, and update as necessary, both your primary and contingent account beneficiaries annually. If your situation has changed, there may be unintended consequences from your beneficiary designations.
Questions? To speak with a Fenimore associate about your investing goals, call us at (800) 721-5391 or stop by the Cobleskill or Albany, NY offices.