Do you want to invest in something but you aren’t sure where to start? Here are some tips to help you out!
Types of Investing
There are several different types of investments that you can make:
• Mutual Funds
• Company Shares
• Real Estate
• Precious Metals
It’s easy to get confused as to which type of investment best deserves your money. So where do you start? Click here!
1. Learn what each type of investing entails.
You can do this easily enough by checking out a basic investing book from the library or spending some time surfing through the Investopedia website.
2. Start reading the financial news sooner rather than later.
It is going to take time to learn what all of the financial news actually means. The earlier you start figuring out what all of the terms mean and how relevant a news piece is to your investments, the better off you are going to be. The more you understand on your own, the less reliant you will be on a broker to tell you what to do.
3. Find a company that brokers the type of investments you want to make.
Don’t just pick the first company that comes up in a Google search! Do your research! Don’t simply assume that the reviews and testimonials listed on the website are all entirely true or entirely independently given. Look through independent review sites like Google Business, Angie’s List and even the Better Business Bureau to find out what people think of a specific company.
Pro Tip: Do not trust any investment firm that only operates online and through emails or web chatting. If you can’t visit a location or talk to a real person, the company is likely a scam. Move on!
Extra Pro Tip: Edward Jones, Scott Trade and Schwab are well known investment firms that have offices and brokerages all over the country. Meeting with brokers in these firms is a great place to start learning about putting together your investment portfolio.
4. Talk to Your Bank
Most “regular” banks have investment professionals that you can meet with to learn more about the investment process. Wells Fargo, for example, has investment specialists to help people who bank with the company put together and manage an investment portfolio. Even if your own bank is not this expansive, your personal banker should be able to provide you with references for qualified brokers in your area.
The Golden Rules
The golden rule of investing, like gambling, is to never invest more than you can afford to lose. This is because investing is, largely, a gamble in and of itself. By setting aside a certain amount of money each month to invest you won’t have to worry about losing your shirt if your investment portfolio tanks.
A good investment portfolio is a varied portfolio. The reason you want to vary your portfolio is to keep yourself protected. This way if one of your investments goes under, you’ll have others to keep you afloat and your portfolio solvent.
Investing, at first, seems like a really difficult subject to learn. If you work at it, though, soon you’ll know just as much if not more than your broker.