IRAs, CDs, ETFs…financial investment can seem like a puzzling alphabet soup – even for eager investors seeking to up their game. Entrance into the financial game does not need to be overly complicated or stressful. With the right preparation and an eager attitude, you can translate even a few dollars into a healthy sum of money and become confident in your finances.
Begin Investing Now
Small investments can add up even when you have a tight monthly budget. A low-cost, all-in-one IRA or retirement fund is a savings option that automatically takes money from your salary each month and puts it into a savings account. If your employer offers a 401(k) match, you should commit to putting at least the percentage of your salary that is matched as part of the plan, as this essentially is “free money.”
Do Your Research
An investment takes time, preparation and familiarity. Match your eager attitude with as much investment knowledge as possible to grasp where and why you are looking to invest. There are countless books, videos and online articles available. You can also speak with customer service representatives at investment brokerages and ask for specific resources to guide your decision-making. Begin to define your short- and long-term goals to build confidence in your strategy.
Find Your Allies
If you are unsure of your ability to make the right investment decisions, financial advisors can offer professional, non-biased expertise around the options that make the most sense for your current and long-term financial goals. Advisors understand the full range of available possibilities and can open your eyes to opportunities you may have yet to discover. Additionally, financial advisors can provide insights around failed investments to prevent you from repeating mistakes. While a financial advisor is an investment in and of itself, the short-term expense should be worth the long-term gain.
Seek Comfort in Investing
If the risky side of investing seems unsettling, explore less risky investment options. While bonds and bank certificates of deposit carry less potential for significant return, they are better bets for safe, slow gains. Investors also should note associated taxes and fees when exploring options and factor these numbers into overall investment expenses. Young, eager investors have the benefit of time to take more risks and get more in the long-term.