Dipping your toes into the world of investing can appear a little scary initially. After all, there is a plethora of options, and you might feel overwhelmed by all the choices and decisions. With that being said, we’ve come up with some focal points for newbie investors that can help you get started:
First, make sure you have an emergency fund and proper time-frame
Although anyone can invest, successfully investing for the long-term is slightly more exclusive. That’s because investing for the long haul requires a bigger time-frame: you’ll probably need your wealth invested for at least 3 years to see successful results.
For instance, if you need your money in a year, it’s near-impossible to tell if the stock market will be up or down then. That’s why patience is needed to reap the benefits of compound interest and the market’s continual growth over time.
So investing for beginners should start by looking at your financial situation. Do you have an emergency fund (6 months of saved living expenses)? Are you financially able to withstand short-term volatility to see results over time?
Invest for retirement
The good news is that investing for retirement can initially be done without a complex investment portfolio. A 401k, for instance, can be opened through your employer, and is a fairly simple way to start investing for beginners. Start by taking full advantage of your employer’s match, and then consider moving on to retirement investments that give you more options, such as a Roth IRA.
Utilize a fiduciary advisor
The next big step – utilizing a financial advisor – can be very intimidating. After all, you’re entrusting your wealth with a near-complete stranger. However, using a fiduciary advisor can ensue you’re getting advice that’s only in your best interest, so you can harness the tremendous value of the right advisor. A fiduciary advisor is legally required to act in your best interests, so they are free from hidden markups and commissions. The right fiduciary will explain investing for beginners, and allow you to set and understand clear goals for growing your wealth.
Learn more about investing for beginners
At LexION Capital, we’re fiduciary advisors who sit on the same side of the table as our clients. Whether it’s explaining investing for beginners, or helping individuals meet their complex goals, we work hand-in-hand to ensure our clients turn their financial dreams into realities. If you’d like to learn more about our services and how we can help you start investing, don’t hesitate to start a conversation today.
