Starting your investment journey is a big step, and it’s easy to be intimidated and put off by horror stories of investments gone wrong. However, it is possible for newcomers to get into the investment industry and to build a secure and steady portfolio.
First of all, what is investment? A basic definition is that investing is the practice of owning (or controlling) an asset or item in the hopes that it will increase in value over time. This asset can encompass a range of items, from stocks/shares in a company, real estate, cryptocurrency, or even smaller things such as limited edition collectibles.
Regardless of what you choose to invest in, here are some tips to help you to make good use of your money and assets.
Make a Plan
Before you start investing, you need to have a plan in place to figure out specific goals. In making this plan, you need to have a discerning look at your finances. Don’t invest money that you don’t have. Figure out how much you can invest and, more importantly, how much you can afford to lose.
Any kind of investment comes with a measure of risk, and you need to understand your risk tolerance. Even holding onto assets without selling has a measure of risk, as buying power might be eroded over time, so you’re potentially trickling away money.
There’s no shame in choosing safe investments rather than risky, but potentially high reward investments. A stable, diversified portfolio where you’re constantly buying and selling for small profits might not be exciting, but it’s far less likely to break your financial security.
As well as establishing what risks you’re willing to take, set specific goals for your investments. A nebulous goal like “earn more money” won’t help you to invest in any direction.
As well as being sure about your goals and financial health, you should also do plenty of research on what you’re investing in. Even if you’re making relatively small and safe investments, you should make sure that the market is trending and not about to crash. Even a secure market like real estate isn’t completely foolproof.
Media can sometimes wave tempting tips underneath hopeful investors’ noses, but be careful not to blindly chase after these tips. Some of them might be insightful, but a stable portfolio is more important than an exciting tip that every other amateur investor will be running after.
Don’t invest your money in something that looks good at first glance, especially if the price seems too good to be true. Dig deeper.
One thing that will help you do this research and make wise investment decisions is hiring an investment advisor, especially if you are new to investing. An investment advisor like Victor Rigoni III will ideally have years of solid experience that you can use to build your portfolio.
When looking for an investment advisor, look for someone who is qualified and who has real-world experience. With help, you should be able to build a solid and secure portfolio and make the most of your investments.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)