Let’s face it. Many people fear investing because they are risking their hard earned money. However, we must look at the history of the markets. The markets have been on a bull run throughout history. Even if you don’t want to invest your money yourself, you can go to Agora Financial and they can help you out. Before investing a penny, there are a few things that you must know about investing. We’re going to be breaking these things down in today’s article.
- Set goals for investing
Just like setting any goal, you must incorporate a plan for reaching that goal. You have to know how much you are going to invest, what you are going to invest in, and how you are going to invest. If you don’t feel confident investing the money on your own, the people at Agora Financial can help you with that. All in all, you have to set goals if you want to succeed in the long run.
- Weigh short-term options
One of the big mistakes many people make in the beginning is that they invest their money into CDs or other money market accounts that pay them hardly anything. In fact, you are losing money after adjusting for inflation. I’d recommend swing trading or even day trading stocks if you know what you are doing. By doing this, the returns can be much greater and you’ll maintain control of your money. For any short-term investment, make sure you truly know the investment because it is generally a high risk/high reward investment.
- Long-term options
Roth IRAs are a great way to build your wealth over time. If I was you, I would fully fund a Roth IRA and a 401k if you have it. The IRA will grow tax-free over the years and your 401k will be matched by your employer. These are very great options for the passive investor who wants low risk. You will be glad you invested once retirement comes around. All in all, you must take control of your finances and learn how to invest on your own. It’s your money and you must learn how to grow and multiply it and more