Step 9 Tips for Success
- Research investment vehicles for high yield and high safety. There are many resources available, both online and in periodicals, to help you do this. Watch out for fees, or penalties for accessing your money whenever you need to, which may cancel out any interest earned. Read the fine print!
- Many people who follow this program “ladder” their fixed-income investments by buying in batches with varied maturity dates. Laddering means that if one of your investments is “called” (if an institution pays back your capital and recalls the bond or other investment vehicle) you still have other investments that continue to pay income while you take the time to reinvest that capital.
- You can create “pockets” of money with differently weighted criteria. For example, you can prioritize liquidity for your cushion, prioritize security for your capital, and prioritize maximum returns (with more risk) for any cache you create and want to invest.
- See the FI website for more resources on investing from a financial integrity perspective.