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NerdWallet Investment Calculator: How to Grow Your Money Smartly

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Learn how NerdWallet's investment calculator helps maximize your returns.

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Are you looking to grow your money through smart investments? NerdWallet offers a variety of tools to help you make informed financial decisions, including their investment calculator. This powerful tool can help you determine how much your money can grow with compound interest. By inputting key variables such as your initial investment, annual contribution, expected rate of return, and time horizon, you can see how compounding interest can work in your favor over time.

One popular investment option to consider is real estate. There are five ways to invest in real estate, including REITs, online real estate investing platforms, rental properties, flipping properties, or renting out a room in your home. Each option comes with its own set of risks and rewards, so it's essential to do your research before diving in.

If you're looking for a low-risk investment option, certificates of deposit (CDs) may be a suitable choice for you. Use NerdWallet's CD calculator to see the total interest you can earn on a certificate of deposit. CDs function similarly to savings accounts, earning interest over a set period of time.

Inflation can eat away at the value of your money over time, making it crucial to factor inflation into your investment strategy. Use NerdWallet's inflation calculator to estimate how much your money could be worth in the future. By understanding the impact of inflation, you can make smarter investment decisions to protect your purchasing power.

I bonds are another investment option to consider, especially if you're looking to safeguard your funds against inflation. Currently, I bonds are offering competitive interest rates of 5.27%, making them an attractive choice for conservative investors.

When it comes to taxes on your investments, capital gains play a significant role. Understanding how capital gains are taxed can help you maximize your after-tax returns. Depending on how long you hold an investment before selling it, you may qualify for lower tax rates on your capital gains.

Your 401(k) contributions can also impact your overall investment strategy. The amount you should contribute to your 401(k) depends on various factors, such as your plan's investment options, employer matching contributions, and long-term financial goals. By maximizing your 401(k) contributions, you can take advantage of tax-deferred growth and employer matching funds.

Budgeting is a crucial aspect of successful investing. NerdWallet's budget calculator uses the 50/30/20 budgeting rule to suggest how much of your monthly income you should allocate to needs, wants, and savings. By following a balanced budget, you can free up more funds for investments and long-term financial goals.

To estimate how long your retirement savings will last, you need to consider your annual expenses, total savings, and expected investment returns. By using NerdWallet's retirement calculator, you can gain insights into how long your money will last in retirement and make adjustments to ensure a financially secure future.

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