Saving for the Future

For beginning investors, the easiest way to set money aside for investments is to invest in a company sponsored employee stock purchase plan or a 401K. An employee stock purchase plan offers employees the opportunity to purchase shares of stock in the company for which they work. One of the benefits of purchasing stock directly through the company is that it usually eliminates the fees typically charged by brokers. There are also certain tax advantages. Check the details of the plan before enrolling, though, as not all employee stock purchase plans are created equally.

Enrolling in a 401K offers employees a choice. 401Ks usually consist of a variety of different mutual funds with participants determining which mutual funds they wish to invest in. Participants also decide the exact percentage to be applied to a particular mutual fund from the money invested.

Companies have annual open enrollment periods to allow employees the opportunity to sign up for employee stock purchase plans and 401Ks. Taking advantage of these company offered opportunities is a good basis for establishing an investment plan.

If an employee has chosen to invest in an employee stock purchase plan, or ESPP, an excellent resource, with toolsand educational options available, is myStockOptions.com. It is recommended by Charles E. Hall, Sr., Second Vice President and Corporate Stock Option Plans Administrator for AFLAC.

myStockOptions.com offers information on taxes related to ESPPs and includes a tax center as part of the site. Also located on the site is a discussion about the Alternative Minimum Tax, and advice on how to apply this tax to obtain the greatest benefit. myStockOptions.com addresses concerns employees may have pertaining to W-2s and whether a particular plan is tax-qualified, according to the Internal Revenue Service code. A global tax guide and a calculator are available.

Quizzes test the knowledge an individual possesses. On myStockOptions.com, quizzes are offered on a variety of subjects, including basics, taxes, employee stock purchase plans and stock appreciation rights. They are a valuable learning tool.

The site also explores the impact major life events can have on an employee stock purchase plan. Events discussed include merger and acquisitions of an employee's company, retirement and divorce.

Information pertaining to 401Ks is available at The Motley Fool, a basic resource for investors. Using the catch phrase "To Educate, Amuse & Enrich", The Motley Fool has dispensed investing strategies to beginners and seasoned veterans on a wide range of subjects, including 401Ks. Sections relevant to 401Ks include "Income Investor" and "Rule Your Retirement".

The Motley Fool encourages investors to increase the growth of their investments. In-depth explanations of specific stocks, mutual funds and dividends help investors make informed decisions. There is a section devoted specifically to Champion Funds.

Tax related information, including information related to extensions of filing dates, is also available. To view information at The Motley Fool, visit www.fool.com.

Finally, track the performance of your company stock or the mutual funds in your 401K. Investor's Business Daily appears in print Monday through Friday and lists the opening and closing figures issued by all major exchanges each day. Performance of specific mutual funds is posted weekly in this respected publication.

Investor's Business Daily can be viewed online at investors.com.