Welcome to our 2 Part Blog series on Tips for the 1st time Investor. The way and the means that people are investing today have changed due to the economy being, well, precarious, so we decided to put together a Blog that gives the new investor some great Tips to help them get started. So without further ado here we go!
- When investing, always consider where your passions lie and try to invest in something that follows those passions. For example if you truly adore wine then investing in wine may be an excellent idea. If you’re a teetotaler it may not. When you’re searching for an investment keep your passions in mind and you’ll be fine.
- Knowing when you will need the money should determine your stock choices. Say, for example, that you will be purchasing property in 5 years. If so, you’ll need an investment that pays quicker so that you can make what you need in that time. If, on the other hand, you’re looking to fund your retirement and that won’t happen for 20 more years your choices will be quite different.
- The willingness to leave your money alone for a long time is a good one when it comes to investing because, frankly, the short term changes in the market can be a killer. If you don’t want to lose occasionally you may want to avoid risky short term investments. Indeed, long term almost always pays better if you can wait. (And that’s the catch.)
- Look at the world as your investing oyster and don’t put all your investments in the US only. The fact is, many countries are on the upswing but aren’t the place that many people would invest because of fears of what will happen there. Still, investing in technology overseas is a great idea and usually an investment winner. Don’t put all your eggs into a single American basket.
- Understand what you’re investing in. Unless you have an excellent advisor who you trust implicitly don’t invest in something that you don’t understand. If you ask questions and they aren’t answered to your liking you should walk away. The last thing that you want is to invest in something that you’re unable to understand because you won’t know if and when it’s time to stay in or get out.
Those are the first 5 of 10. Come back and see us soon for 6 through 10 and use the info well. See you soon!