A Beginner's Guide to Investing

Are you thinking about investing but aren’t sure where to start? Investing can definitely seem intimidating, but it's actually pretty simple once you get the hang of it. Instead of putting your money in a savings account where it just sits there, investing allows your money to work for you. You buy assets like stocks, bonds, or real estate with the hope that they'll increase in value over time, making you a profit. Here’s what you need to know about getting started. 

Setting Clear Goals

Before you start investing, take some time to think about what you want to achieve. Are you saving for retirement, planning to buy a house, or just looking to grow your money? You might have earned or inherited a decent sum of money and want to do something with it instead of having it just sit there, or you might be starting really small and that's ok too. In fact, many platforms allow you to begin with as little as $100. Starting small will enable you to dip your toes into the investing waters without risking too much upfront. However, having clear goals will help you choose the right investments that align with your objectives.

Doing Your Research

One of the most crucial steps in investing is doing your research. You need to understand what you're investing in and how it works. Take the time to research different investment options, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Learn about their risks and potential returns so you can make informed decisions. You'll need to choose a platform to buy and sell investments. There are many platforms out there, ranging from online brokers to investment apps. Look for one that offers low fees, a user-friendly interface, and educational resources to help you learn more about investing.

Diversifying Your Portfolio

Diversification is key to reducing risk in your investment portfolio. Instead of putting all your eggs in one basket, spread your investments across different asset classes, industries, and regions. This way, you won't lose all your money if one investment performs poorly.

Staying Consistent

Consistency is important when it comes to investing. Rather than trying to time the market or chase the latest investment trends, focus on investing regularly over the long term. Set up automatic contributions to your investment accounts so you can invest consistently, regardless of market fluctuations.

Ignoring the Noise

The financial markets can be noisy and unpredictable, with news headlines and market fluctuations causing investors to panic. It's essential to tune out the noise and stick to your investment plan. Remember, investing is a long-term game, and trying to time the market rarely pays off in the end. Once you've started investing, monitoring your investments regularly is important. Keep track of how your investments are performing and make adjustments as needed. Make sure that your investment performance reports undergo GIPS standards verification for accuracy and transparency so you’re able to make informed decisions about your portfolio adjustments.

Rebalance your portfolio on a regular basis to maintain your desired asset allocation and ensure that it aligns with your long-term investing goals.