Investing Tips from FFGBuild wealth while raising a familyRaising a family is rewarding ─ and expensive. But taking a few steps to set up can help you support your family financially while you start investing.To build a career while raising a family requires management skills. Juggling time, priorities and money now while planning for the future can be daunting, but it is vital to start planning and investing for future endeavors like the kids’ college tuition and your retirement.

Saving part of your monthly income is the first step toward building wealth. After putting aside enough cash for an emergency fund, consider investing. Here’s how to design your investment portfolio to your tolerance for risk, age, goals and income.

Start with building your retirement nest egg. While building your child’s college fund is important, preparing for retirement should take precedence. Your children have options using a combination of savings, loans and scholarships to attend college. You must live on Social Security and the wealth you’ve accumulated.

Use the tax code to help build wealth. If you’re covered by a qualified employer retirement plan, consider making the largest contributions you can afford to your 401(k), you should make sure the money is invested in assets with the potential to provide long-term growth. If you’re self-employed or not covered at work, consider an Individual Retirement Account (IRA) and/or Self-Employed 401(k), preferably self-directed ones, to hold your investment portfolio. Not only are contributions tax-deductible each year (subject to income and contribution limits), but all your earnings are tax deferred until you start making withdrawals. You can delay withdrawals until age 70 1/2, giving you many years of tax-deferred growth potential.

Take advantage of other tax breaks. While contributions to a 529 education savings plan aren’t deductible from your taxes, growth is tax deferred. If used for qualified educational purposes, withdrawals are tax free.

As your wealth grows, consider if it’s appropriate to allocate money into investment vehicles like tax-free municipal bonds,* Treasury Inflation-Protected Securities, whole life insurance, Real Estate Investment Trusts (REITs), and qualified annuities, to name a few.

Be a good parent, and be good to yourself. How you invest your money is critical to the financial health of you and your family.

Source: LPL Financial
*Interest income may be subject to the alternative minimum tax. Municipal bonds are federally taxfree but other state and local taxes may apply.
     There is no guarantee that a diversified portfolio will enhance overall returns or outperform a nondiversified portfolio. Diversification does not protect against market risks.
     Qualified accounts such as 401(k)s and traditional IRAs are accounts funded with tax-deductible contributions in which any earnings are tax deferred until withdrawn, usually after retirement age. Unless certain criteria are met, IRS penalties and income taxes may apply on any withdrawals taken prior to age 59½. RMDs (required minimum distributions) must generally be taken by the account holder within the year after turning 70½.
     Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Past performance is no guarantee of future results. This material was prepared by LPL Financial.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. American Airlines Federal Credit Union and Flagship Financial Group are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Flagship Financial Group, and may also be employees of American Airlines Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, American Airlines Federal Credit Union or Flagship Financial Group. Securities and insurance offered through LPL or its affiliates are:Not Insured by NCUA or Any Other Government AgencyNot Credit Union Deposits or ObligationsNot Credit Union GuaranteedMay Lose Value