Many people wish for greater financial prosperity in their futures. Smart financial planning is the key to attaining this goal. The new year has arrived, and now is the perfect time to consider what investments you can make to increase your wealth. Below, learn some tips for your investments this year. 

5 Smart Investment Ideas for Financial Planning in the New Year

1. Consider the Stock Market

Stocks provide you with a share of ownership in a public company. Since the market fluctuates, look for stable investments with established companies. "Blue-chip" stocks like banks and utility companies usually even pay dividends per share, giving you a cut of the profits.

2. Invest in Bonds

If stocks seem too risky to you, bonds are a more stable alternative. These are basically a loan that you give out to an entity and are less affected by market volatility. Split your investment between public and private bonds to diversify your investment.

3. Prepare for Your Children's Futures

If you have kids, it's never too early to start saving for their education. A 529 college savings plan is one option. The investment earnings are not taxed so the longer you keep funds in the plan, the more you should benefit.

4. Revamp Your Retirement Planning

If you have a 401(k) and your employer sponsors a matching contribution, maximize the match percentage if you haven’t already done so. If you can't benefit from employer-sponsored benefits, get an IRA. With a Roth IRA, for instance, the money you take out in retirement isn't taxed.

5. Consider Mutual Funds or Exchange-Traded Funds

Mutual funds and ETFs are investment packages that bundle together a diversity of investments. They usually combine a mix of stocks and bonds. This allows you to diversify your portfolio without doing extensive research on your own.

For personally tailored financial planning advice, consult Stephan and Associates in Xenia, OH. These wealth management experts offer a comprehensive range of services designed to help you meet your financial goals. Whether you are worried about retirement planning or have questions about life insurance, they can help. Whatever you turn to them for, you will receive personalized expert advice that prioritizes your wishes. Review their full range of services online. For an appointment, call (937) 374-2002.