Let’s face it. Everyone wants to be set up for a good retirement but many people don’t want to put the money down to invest. A majority of the population fears investing and I think it is because of one major thing: they have no idea what they are investing in. When you aren’t knowledgeable of an investment, it’s hard to have control. It is gambling in a sense. The good news is that investing doesn’t have to be this hard or confusing. In this article, I’m going to be breaking down my top tips when it comes to investing.
- Set goals
When it comes to investing, you must have a plan for growing your money. You need to know how much you are going to invest every month, know what you are going to invest in, and know how you are going to invest that money. Every month, you can sit down and write these goals out with your spouse. In the end, you will gain clarity on your investments and understand them better over time.
- Short-term investments
If you look at many successful figures, they have investments that earn them high returns in the short run. This can be a small business, swing trading, or other things. They then use the capital that they gained and put it into more stable, long-term investments that protect their wealth. This is what I would recommend everyone do. Focus on an investing activity that will provide great returns up front that will allow you to invest more into your long-term plan
- If you don’t want to do short-term investing, that’s okay. Plenty of people prefer to only invest for the long-term. Two investment vehicles that I would highly recommend would be the Roth IRA and the 401k. With a Roth IRA, you’ll be able to grow your money tax-free and have it compound over time. With a 401k, your employer will most likely match up to a certain amount that you contribute. All in all, I would max these investments out. Both of these will set you up best for retirement and more