When you want to make your money grow you first need to learn how to invest properly. The fact is that thousands of Canadians lose money on investments each year by not taking the time to understand their investment strategy. Having a solid investment plan in play, you need to take the right steps and inquire with the right people who can advise you. To get on the right track with your investments, check out these 5 ways to be sure you are making the right investment choice right from the get-go.
Know Your Goal
You will never be able to know if you’re on the right track of making the best investment choice if you don’t know what your goals are. For instance, are you investing for extra retirement security, income, or growth? Do you want to invest for the short-term, mid-term, or long-term? Your answers to these questions can help form your financial plan and strategy that will be in sync with your goals. Thus, any decisions you make should be in sync with your strategy in order to keep you on the right path.
Being realistic about how much money you have to invest will help you make better investment choices. For instance, if you have a hefty sum of money to invest you will naturally have more investment options available to you, and can easily diversify. If you only have a small amount of money, you should start slow and begin transferring monthly amounts to your investments that you can actually afford. If you’re not realistic you can get yourself into money issues quickly, so talk to an advisor on how to build your portfolio with what you can afford.
Do the Research
Hearing from a friend about a “good stock to buy” often leads to costly regrets. Before you invest, learn as much as you can about stocks, bonds, mutual funds, and all the investment instruments out there. Take the time to understand the jargon and terms, the types of investments available to you, what investments are better for short and long-term, and educate yourself about the financial markets. The more you know, the better prepared you are, and the more likely you will make the right investment choice to see your money grow.
Know the Risks Involved
It’s no surprise that all investments come with some degree of risk. But some investments are much riskier than others. You are more likely to make a sound investment decision if you are aware of the risks that a particular investment can entail, and have the capacity to absorb any potential risk you may experience.
Get Advice from a Professional
Investments are complex to understand and trade. If you don’t know what you’re doing, you could lose money. Talking to a professional for advice on what investment tools are best for your financial condition, is the best way to ensure you’re making the right investment choices for you. Even the savviest traders have financial mentors and work with other professionals to help them get the most out of their investments.
When you need some expert advice, talk to us at The Beacon Group of Assante Financial Management Ltd. Our team of business professionals can guide you in your investment decision and help you understand what financial strategies are best suited to you.