5 Tips on How to Become a Successful Investor
With the stock market experiencing massive drops due to the coronavirus crisis, the uncertain down market has investors clamoring to sell at low prices. A lot of people are also considering learning more about investing.
To give you a couple of ideas about where to invest first, here are five investing tips that would help you learn how to become a successful investor.
Establish Your Goals
Your approach to investing may vary depending on your priorities and goals. Maybe you’re looking for a way to grow your extra funds, funds for a comfortable retirement, or college funds for your kids.
Your risk tolerance also helps define your goals. The higher the risk of loss from your investment, the greater the returns are. But how much are you willing to tolerate these risks? Consider a variety of investment types and determine which work for you.
Look Into Investments with Guaranteed Returns
No investment has guaranteed returns, but these strategies could help you improve your financial status in the future.
The first strategy is to pay down your credit cards. Next is to invest in a retirement plan. Grow your money tax-free by investing in the tax-deferred retirement plans. Companies match your contributions to your 401k, so it won’t hurt to maximize it.
Try to Keep Costs Low
Check the charges for the administration fee. Some charge a flat fee, while others depend on the percentage of growth. If you only have less than $1,000 to invest, it may be better to use the percentage.
Use a Robo-Advisor
Investment services are now available on various online platforms, and these are called “Robo-advisors“. These offer user-friendly interfaces, low-minimum balances, and streamlined enrollment processes to help investors, especially the beginners. Find out if using robo-advisors works for you.
Consider Investment Alternatives to Stocks and Bonds
Try to spread your eggs in multiple baskets and diversify your portfolio. Aside from stocks and bonds, you might want to consider energy commodities like natural gas and oil, precious metals like silver and gold, IPOs, or maybe investing in startups.
You can also try peer-to-peer lending, which is considered similar to crowdfunding. How it works is that small businesses will upload a business plan or product on the online lending platform. You then decide if you want to invest in something or not.
More in Pocket Change
Financial Mistakes Most Millennials Regret Making During College
Getting ready for college could be one of the highlights of your life, personally and professionally. A lot of opportunities open...August 17, 2020
Tips to manage Stress and Be Careful Once Offices Resume Post Lockdown
There would hardly be anyone who’d not be excited to get back to work after the Coronavirus lockdowns are lifted. It’s...August 17, 2020
Struggling to Figure Out Your Next Career Move? Here’s How You Can Keep Your Professional Progress On Track With These Expert Insights
We know that planning your next career move is the last thing on your mind right now. With companies closing and...August 16, 2020
Students Looking for Extra Income Can Apply for These Three Online Jobs
Students usually have limited budgets. And with unexpected expenses threatening to mess with those funds, most of them are now considering...August 15, 2020
The Five Most Important Things You Need To Consider When Getting a Personal Loan
A personal loan means borrowing from a lending entity, may it be a bank or some other credit provider. It’s...August 15, 2020
Struggling to set your Career straight? Take a look at These Tips that are Sure to Help
The pandemic has created havoc in many industries, and thousands of people are left without jobs. If not entirely out of...August 15, 2020
Millions of Americans Skip Mortgage Payments during the COVID-19 Pandemic- Here’s Why
The impact of COVID-19 is affecting every industry, as you can imagine. In June 2020, over 4.3 million homeowners skipped their...August 14, 2020
How to Build a Successful Career in Event Management – Expert Tips
Unlike earlier times, today’s younger generation has a variety of career choices. Current opportunities are usually based on either the global...August 14, 2020
If You’re Struggling to Pay Rent or Mortgage During COVID-19, These Tips Will Definitely Help You Out
Let’s face it- when talking about monthly bills, your rent and mortgage bills sit right at the top of the list....August 14, 2020