How To Invest Your Money
Investing is one of the most effective ways to build wealth and achieve your financial goals.
Investing is buying an asset that has the potential to grow over time.
Where do you start? What assets should you buy?
Term deposits, stocks, bonds, mutual funds, exchange-traded funds, gold, and cryptocurrency are just some of what is available.
Who should you go to for advice? We are no longer limited to a financial advisor at a bank. The last ten years have seen tremendous growth in online platforms.
There are do-it-yourself discount brokerages, Robo-advisors, and more.
Despite being inundated with information, there are still commonly asked questions about investing. Do you need a lot of money to start investing? Are all investments risky?
Do all advisors have a fiduciary duty to represent your best interests? Knowing where to invest is dependent on a few variables.
It starts with knowing your financial goals – a child’s education, retirement, the down payment on a home, or a strategy to reduce taxes?
What’s your investment time-horizon? In other words, how long are you planning to keep the funds invested before needing to access them.
One of the biggest mistakes people make when it comes to investing is they invest money for short term goals in assets meant for the long term.
Deciding where to invest is also dependent on your tolerance for risk. Your willingness to accept volatility on your principal.
If you are not able to sleep at night when your principal drops by more than ten percent, you are likely a conservative investor and should purchase conservative assets.
If you want to invest but lack the knowledge and confidence to do it on your own, then it’s wise to consult a financial advisor to help you with the process.