The market is down right now and you are thinking about learning to invest. The following five investing tips will give you some ideas about where to put that money first. And what happens to that money will help you learn how to become a successful investor. Even if you’re just a beginner!
Perhaps you have only $10,000 or even just $1,000 to play with. Don’t worry. That is a start. In fact, you are wise to start small so that any losses are minimized. Remember, you are learning.
So without further ado, here are the five investing tips that will help you become a successful investor.
The Five Investing Tips
Investing Tip #1 – Define Your Goals.
Are you a thirty-something with a bit of extra cash looking to learn to grow it? Are you in your 50’s and realizing you haven’t planned adequately for retirement? Do you have teenagers and you don’t know where money for college is going to come from?
These are people with three vastly different life situations who will need three different approaches to investing. If you are the parent of college-bound kids needs an investment vehicle that will grow savings with a target end-date and withdrawal of returns that will be tax-free – this exists!
Or, if you are a 50-something, you may be permitted to double the amount of annual contributions to a retirement account. And if you are thirty-something then you have many options to play with For example, there are traditional mutual funds, bonds, and stocks, peer-to-peer lending and REITs.
These three beginner investors will have differing risk tolerance profiles. Generally, the greater the risk of loss, the higher the return on an investment. How high is yours?
The trick to this investment tup is to answer these questions for yourself and define your goals. Then, you are armed with the knowledge you need to look at various investment types and vehicles and determine which are best for you.
Tip #2 – Consider Investments with a “Guaranteed” Return
Is there an investment with a guaranteed return? Not exactly, but the following four strategies in this investment tip are almost certain to improve your financial future. They are:
Paying Down Credit Cards
Is the money you have to play with really “extra?” If you have high-interest credit card or personal loan debt, pay that off first. Paying down high-interest debt is an investment in your future guaranteed to outstrip most others returns on investment. And that’s a huge investing and financial tip in general.
If your credit cards have ballooned out of control, you might consider seeking the advice of a debt settlement attorney. A debt settlement attorney can help you pay off your debt for less than you currently owe to your creditors.
Paying Into a Retirement Plan
Another investing tip is to consider paying into some sort of 401k. Many people have …read more
Source:: Investment You