5 Basic Investment Tips
Not everyone is a seasoned investor. That’s why we have compiled a few basic investment tips for you to use.
When you start investing, time is just as important as the dollar amount set aside to invest. Time plays a critical role in the growth of your investments, and for that reason, we recommend that people start saving and investing as early as possible in your career. Even if you can only set aside a bit each month, that little bit can grow into a lot over time. People often make the mistake of thinking they should only start saving when they are 40 or 50. The best time to start is 20 years ago, but the second-best time is now.
Regardless of how much you have invested, you should always keep a certain amount of money relatively liquid, easy to access without a long delay, and without penalty. This is money that you might need in an emergency and for unforeseen expenses. It is generally recommended that you keep enough to cover between 3 and 6 months of your monthly fixed costs, like rent, mortgages, property taxes, utilities, and food. An emergency could be, for example, a pandemic, and an emergency fund comes in handy when unexpected circumstances arise.
This is the principle of not having all your eggs in one basket. You may want to invest in different types of investments and business sectors. Investment advisors can guide you with this. So, even if you love tech stocks, you would not want a portfolio that is only tech stocks. A well-balanced portfolio protects you from the volatility of world economics.
4. Have a Plan
The best way to achieve goals is to first set some. You need a plan for where you are going before you start investing. What do you want to achieve? When do you want to achieve it? A Certified Investment Planner is good at strategizing to help you realize these goals.
5. Stick to Your Plan
Ignore the noise around you. Tune out the television news and your neighbours talking about a really hot stock. Once you have a good plan in place, then what you need is time for your investments to grow. Investing is a long-term strategy with long-term benefits. Don’t lose sight of long-term goals with short-term schemes that often don’t work.
Whatever your plan is, a good investment advisor can help, and more than you realize. These five suggestions above will put you well on your way to a bright investment future.
Noah Belcher is an Investment Advisor with iA Private Wealth Inc., and is a CERTIFIED FINANCIAL PLANNER® professional and a Chartered Investment Manager (CIM®), who helps his clients achieve their financial goals and objectives. He offers personalized solutions and stellar customer service to clients with complex tax profiles who require top-notch advice.
If you have any questions about this article or would like to talk to him about your financial profile, call his office at (604) 535-3454.
This information has been prepared by Noah Belcher who is an Investment Advisor with iA Private Wealth Inc. Opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of iA Private Wealth. The information contained herein may not apply to all types of investors. iA private Wealth Inc., is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.