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3 Investing Tips to Last for the Next 365 Days

By U.S. News & World Report

Now that we’re more than a quarter into the year, it’s likely that many investors have already lost sight of the financial resolutions they recently made. If your excitement to reinvigorate your financial plan is fading, now might be a good time to revisit these goals and establish an investing approach you can stick to all year long.

And if you failed to make any financial resolutions, you’re not alone. In fact, Capital One Investing’s Financial Resolutions Pulse Survey found less than one quarter (24 percent) of Americans were considering making a financial resolution this year. But it’s not too late to establish financial goals, or to remind yourself why you had these intentions to begin with.

Commit to your financial future now. While it’s easy to prioritize in-the-now purchases that deliver instant gratification, you may not want to wait until it’s too late to start building your financial foundation. Even if you invest what seems like a small amount, it has the potential to considerably add up (depending on the risks of your investing strategy and market activity).

[Read: Do Actively Managed Funds Really Pay Off for Investors?]

The earlier you begin, the more likely you are to grow your nest egg — so think about ways to start investing a portion of your everyday budget. Buying a premium cup of coffee twice a week totals $500 a year (or roughly $10 a week), so putting away incremental sums in a portfolio on a regular basis can be a critical first step and it may build over time.

For example, if you invested that $500 in your 401(k), you may accrue $21,000 over 20 years ($10,000 principal and $11,000 in investment gains). That’s one full year of college tuition! If you decide to start an investing account, consider setting up automatic contributions that enable you to invest a set dollar amount on a regular basis at a low cost.

Set simple, attainable goals. Your financial resolutions don’t have to be complicated or cause you to drastically change your lifestyle. For instance, maxing out your 401(k) contributions and your employer match is a straightforward change that may make a big difference down the line.

[See: 7 Ways to Tell if a Stock Is a Good Price.]

Unfortunately, it’s easy to overlook your 401(k) investments, and Capital One Investing’s Financial Resolutions Pulse Survey found 49 percent of Americans aren’t planning to increase their contributions to a 401(k) or other employer-sponsored retirement plans this year. If you don’t you think you can swing investing more in your 401(k) right now, one rule of thumb suggests slowly increasing contributions with each raise until you are investing 10 to 15 percent toward retirement.

Depending on your situation, increasing your 401(k) allocation in this manner may have a significant impact on how much your retirement savings may grow over your career.

Improve your financial knowledge. According to Capital One Investing’s Financial Resolutions Pulse Survey, younger investors’ (ages 18-24) top financial resolution is improving their understanding of investing. If you know you want to create a portfolio but aren’t sure how to get started, access free online resources or talk to a financial advisor to learn more about the markets and strategies that may help you build your plan.

[Read: 5 Signs Your Dividend Is Doomed.]

If you already have a portfolio but are considering making changes to reflect your financial resolutions, you may want to review your strategy to make sure you understand any recent gains and losses, leverage educational tools, or talk to a professional to determine if you need to rebalance or tweak your strategy to reach those goals. Remember to also take the time to learn about the risks associated with your investments, as there is a potential for loss.

There are many ways to stay on track throughout the year so you can end 2016 as you started it — motivated and inspired. For instance, you may want to consider gauging your progress on a regular basis to make adjustments where necessary. Remember, checking in on your portfolio’s asset allocation mix and risk level throughout the year may help you make sure that you won’t encounter any surprises later on.

Setting attainable goals now may help you prioritize your financial fitness for the next 365 days and beyond.

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3 Investing Tips to Last for the Next 365 Days originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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