# Page 4: Invest your Savings

Once you have some money saved up, it's time to start putting it to work for you through investments. Here are some options to consider:

# Index Funds: These passively managed funds track a market index like the S&P 500, so they're broadly diversified and offer low fees.

Pros: • Low cost and hassle-free • Tend to outperform most actively managed mutual funds • Wide exposure to hundreds of companies

# REITs: Real estate investment trusts allow you to invest in real estate portfolios and properties without actually owning physical assets. Many pay high dividends.

Pros: • Professional management of the properties • Potential for high yields from dividends • Diversification across different types of real estate

# Dividend Stocks: Companies that pay regular dividends provide both capital appreciation potential and a steady stream of income.

Pros: • Passive income from dividends • Stable cash flow that can compound over time • Potential for stock price growth

Look for companies with: • Long history of dividend growth • High dividend yield • Low payout ratio (leaves room to increase dividends)

The key with any investment is to stay the course and ignore short-term volatility. Focus on long-term growth through:

• Dollar cost averaging - Contributing fixed amounts regularly over time • Compounding interest and dividends - Reinvesting the returns to accelerate growth • Tax-advantaged accounts - Utilizing IRAs and 401(k)s to reduce taxes

With consistency and discipline, these investment strategies can generate life-changing returns over 10, 20 or 30 years. So start small and build good investing habits that will pay off big down the road!