Is it time to invest?
Have you been wanting to invest but not sure where or when to start? Many suggest to get started as soon as possible and to not wait for the “right time”. The sooner you start, the more time you will have to get your money growing. One main factor to consider is making sure you're financially ready. Know the ins and outs of the money you earn and get to know your risk tolerance.
As you’re getting started, assess how much time you will be able to put into analyzing investments and keeping up with their progress after you buy them. Do the research on stocks and have your goals in place with the end in mind. Below are a couple of ways to invest, terms to understand and advice to find advisors that can provide assistance during your investment journey.
Four Ways to Invest
1. Savings
Interest accounts such as Individual Retirement Accounts (IRAs) will get you investing for retirement. There are two types of IRA accounts; Traditional IRA and Roth IRA. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.
2. Certificate of Deposit
Similar to a savings account, a Certificate of Deposit (CDs) can typically earn more interest and can be less risky than other investments. Our CDs have a wide range of terms available from 6 months to 3 years.
3. Stocks and Bonds
Investing in stocks is when you buy a portion of a busines to profit along with them. NerdWallet suggests investing in companies “you believe will increase in value.” Bonds are a way for a company or government to borrow money. They tend to balance the portfolio and are a lower risk investment.
4. Mutual Fund
A mutual fund is a portfolio of stocks, bonds and other securities. The fund’s assets are allocated by a money manager, who attempts “to produce capital gains or income for the fund’s investors.” This option allows an investor to buy a portion of many stocks rather than just one.
Consult a Financial Advisor
There is some financial risk involved when investing. The risk mostly connects with the returns of the investment. To understand your risk tolerance, consult the financial advisor of your choice.
There are also convenient robo-advisors available that can be more affordable than human providers. However, if you still want the ability to talk to a person, they usually have human advisors available for questions.
Overall, investing comes down to your preferences, doing the research and figuring out what you have time for. Once you find a financial advisor that aligns with your goals, you’ll be on the journey of growing your money! Contact us for additional financial needs, we’ll be happy to find the right financial solutions for you.
Sources:
How to Invest Money: Choosing the Best Way To Invest for You
What Is a Robo-Advisor and Is One Right for You?
How Bonds Work & How to Invest in Them
How to Invest in Stocks: A Beginner's Guide for Getting Started