An economic recession is the best time to invest because companies are hurting for business and are eager to get new clients. In addition, stock prices are lower so you will get more for your buck by purchasing shares at lower prices.
You will need at least 70-80% of your income during retirement so contribute as much as you can each year. It is never too late to start investing, it’s better to have a small amount than nothing at all. Here are 9 beginner investing tips.
1. Sign up for your employer's retirement plan and use the matching contributions benefit.
2. Setup a separate IRA using automatic paycheck deduction to help reduce taxes and in the event your employer goes bankrupt. Invest with an established investment company or brokerage company such as Charles Schwab or Price Waterhouse Coopers and ask questions about your investments.
3. Invest in mutual funds if you are not knowledgeable about investing.
4. If you have some extra money to play around with you can invest in companies that never go out of business: grocery stores, oil companies, car repair shops, pharmaceutical companies, information technology companies, etc.
5. Diversify your portfolio to minimize losses. Put a portion of your money in stocks/mutual funds, a portion in low risk investments such as bonds and a portion in medium risk investments such as large cap funds, etc.
6. Review your retirement statement to check for any errors.
7. Educate yourself and know at least the basics about investing so you will know whether your financial advisor is providing you with correct advice.
8. Find an investing mentor or role model. Ask questions and get advice on investing and how to grow you money in the stock market.
9. Gain additional knowledge by reading books by investing experts and watching financial television shows or reading articles on financial websites.
No comments:
Post a Comment