When a person thinks of investment, stock markets are the first thing that comes to mind. However, another meaning of investment is how to make your life better in the future. There are several investments that you will make as you grow up from going to school, to buying a vehicle. Here are the top five life investments that are worth the long cost with reasons behind why they are worth the long cost.
College is not cheap, and depending on your degree program, it could take a long time to pay the loans back. College is still an investment that will dictate how your future can be. It is impossible to be a doctor if you do not go to school and get the education. It is easier to attend college when you are single and have no children, but it is an investment that can be made at any point in your life.
2. Life Insurance
Life insurance is an investment that you will pay towards for most of your life. Parents can even start life insurance policies for their children as soon as they are born. This investment has value that exceeds words. The money can be used to pay for funeral costs or medical costs. It can be used when you have passed to help loved ones left behind who now have only one income. Most life insurance policies have a very low monthly payment, it is just important that you go with a company that you have researched since you will be paying them money for the length of your life.
3. Mutual Funds
Mutual funds are often viewed as life investments, even though they can have fees and you cannot customize them. They are controlled by the government and they offer liquidity that can be accessed daily. It may not be one of the highest on people’s list for investments worth it in the long run, however they can quickly gain interest, and you can pull the money out to invest elsewhere over time.
4. Purchasing a Home
Another important life investment to make is the purchase of a home. It is important not to make this purchase too early in life, unless you can afford it financially. That is because if you foreclose on a house, it will stay with you for years. You want to get a secured loan with payments that you are comfortable with. Your home can then become an asset later in life.
5. Roth IRA
The final life investment worth the long cost is a Roth IRA. Roth IRAS are literally retirement accounts. This is an investment that will make your life easier when you retire, because you will have a tax-free income. You can start a Roth IRA at any age; however, just like life insurance, it is better if started at young age.
Life investments can cost you thousands of dollars, but this does not mean that they are not worth it. The investments listed in this article are the top five investments that are worth the cost over the years.