Looking ahead to the future can be daunting – especially when it comes to our finances. Thankfully, by investing wisely, we can eliminate some of this stress by achieving our financial goals over time.
A common misunderstanding that comes with investing is that in order to invest, you must already be “wealthy” or have investment expertise. In reality, investing your money is an opportunity for everyone; it’s all about coming up with a plan that works for you.
Here are some tips to get your investments started, or to enrich your investment portfolio:
1. Understand Your Investment Options
The potential for investment opportunities is seemingly endless – that doesn’t mean every opportunity is right for you. Becoming well-versed in your options will help you create a more personalized investment plan to meet your unique goals.
Not sure where to start? Talk to your financial advisor to learn more about what investment options might suit you best.
2. Start as Early as Possible
You are never too young to invest; the earlier you start, the better. When you begin investing early, you have more opportunities to compound your investments, continually building upon your account value. When you start investing early, it becomes easier to make the practice a habit, enhancing your financial health.
Investing always comes with an element of risk, however, investing early gives you more time to recover from losses and resave your money. Learning from losses young will also provide greater expertise later on.
3. Remain Level-Headed
As we mentioned earlier, a common misunderstanding that comes with investing is that in order to invest, you must already be “wealthy” or have investment expertise, or maybe even be reckless to achieve high-risk, high-reward investments. While some people may achieve financial success this way, overconfidence typically leads to bad investments and the loss of money. Instead, remain realistic about your investments; not everyone is going to be a winner. Also, take the time to evaluate your options before making an emotional decision.
On the other hand, fear and a lack of confidence also lead to poorly performing investments. When fear kicks in, investors may unnecessarily sell stocks, or refrain from investing in wise investment opportunities. Instead, take the time to assess your wins and losses and make a guided decision. Carefully weigh risks without letting emotions overcome you, and seek professional advice when you’re unsure.
4. Mind Investment Fees
Depending on the types of accounts you have and the investments you’ve selected, there is the potential for high fees that can eat up your gains. In order to avoid this, you will need to understand how much you pay in fees and how much you will need to gain to account for them.
5. Seek Professional Advice
Whether a seasoned investor or a newcomer, your trusted investment advisor is there to help guide you towards your goals.
No matter what stage in your investment journey, RaeLipskie’s team of advisors is here to help. We are committed to our clients and have one clear mission: to provide our clients with objective, professional investment management – free from any conflict of interest. We create and manage your tailor-made portfolio of stocks and bonds with an emphasis on achieving your objectives. These portfolios are flexible to the ever-changing environment yet they reflect a clear, long-term philosophy toward the accumulation of capital.
For more, visit this page on Tips for Successful Retirement Investing.