 TITLE: Should I Pay Off Debt Before I Invest? CONTENT: How to Start Investing\n----------------------\nIf you don't have any high interest debt, investing your extra cash flow can help you create a better life in the future.\nIn general, the best place to start with investing is your retirement account. Experts at Fidelity Investments recommend putting at least 15% of your annual income toward retirement. Whether you do that through a work-sponsored retirement plan or an individual retirement account (IRA) is up to you, but make sure you're never leaving any money on the table, such as from an untapped employer match to your 401(k).\nBeyond retirement, the right investments for you will depend on your risk tolerance. Risk tolerance is a term used to describe your ability to withstand a certain degree of volatility in your investments.\nFor example, stocks are generally riskier than bonds, and mutual funds can help provide diversification among stocks, bonds and other investments to reduce the risk from each one individually.\nFactors that help determine your risk tolerance include your age, income, lifestyle and when you'll need the money.\nSomeone who is 30 years away from retirement may have no problems with an aggressive stock portfolio, because their long-term investment can weather the ups and downs of the stock market. If you're two years from retirement, however, a market downturn could wipe out a significant chunk of your investment right when you need it for living expenses. In that case, you might have a lower risk tolerance. END