
9 Tips for Investing Wisely
Investing is a necessity for some and an exciting side project for others. But, if you’re saving for retirement, more than likely you’ve had some experience with the stock market.
If you have a significant amount of investment knowledge, you may choose to manage your own accounts. However, most people aren’t confident playing the stock market on their own and can benefit from the knowledge and experience of a financial advisor. For newbies just getting their toes wet, in addition to the nine tips below, be sure to check out this quick start investment guide for beginners.
No matter how you choose to get started, these nine tips can provide you with a good strategy.
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Map out a personal financial plan—Before you make any significant financial decision (investment or otherwise), take some time and plot your financial journey. This journey should include what has happened in the past (positive and negative) as well as what your goals are for the future. It’s always easier to get where you want to go when you have a map, right?
If you don’t feel comfortable doing this yourself, enlist the help of a financial advisor.
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Find your risk comfort zone—Of course, all investments come with some degree of risk. Stocks, bonds and mutual funds, for instance, carry more risk than certain cash deposits with federally insured financial institutions.
The more risk you choose to assume, the greater the potential for a higher investment return. Evaluate your timeline—a longer-term goal is typically better served by carefully investing in higher-risk investments like stocks or bonds. Whereas low-risk assets like cash deposits, term deposits or money markets, may be more appropriate for short-term financial goals.
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Mix it up for a lower loss potential