- August 10, 2019
- Posted by: Harrine Freeman
- Category: Financial Advice
Investing is a complex topic. However, it has several benefits. It provides peace of mind, financial security and develops discipline. Many people ask for advice from friends, co-workers, family members, strangers, and their financial planners about how to invest. No matter you take advice from you must keep your money invested during the ups and downs of the stock market – at least 7 years to see a decent return on your investment.
Every investor has different financial goals and objectives and should work with a financial planner to achieve your goals. Financial planners have expertise in how to survive the ups and downs of the stock market and can provide the best advice and if and when you should move your money. Ensure you financial advisor is concerned about your goals and does not try to steer you into products that do not align with your goals and values. Here are 7 practical steps to help you start investing your money to plan for retirement.
Get your finances in order. Pay down debt.
Create an emergency fund 9-12 months.
Get insurance to insure your assets – you, home, autos, jewelry, art, etc.
CREATE A STRATEGY
- Determine your retirement date, lifestyle, and goals.
- Develop a clear plan where you are now and where you want to be financially.
- Identify whether you want to invest in small caps or big cap stocks, emerging stocks, etc.
- Research the stock price history, executives, and annual report. Learn everything about the company before you invest.
- Research the fees that you will be charged when investing such as commissions, management fees, cost of operating the fund, etc.
- Read self-help resources to gain knowledge.
KNOW YOUR PHILOSOPHY
- Take time to develop your personal investment philosophy.
- Identify your risk level and patience level.
- Get an investing mentor.
- Get advice from someone in your social circle who has an extensive financial portfolio you would like to emanate.
- Ask questions and ask for resources.
- Hire a financial advisor or financial planner.