The First Step to Investing

There is no question that more people are concerned about their finances than ever before. Perhaps they are confused and are struggling. Or maybe they are a part of this segment of the population that is getting older, the baby boomers. Either way, they know the importance of having enough money to have a sounder financial future. What they need to know is the first step to investing.

Investing your money is a smart way to make your money work for you. You may not know that you don’t need a lot of money to start investing, and you don’t need thousands and thousands of dollars to get your foot in the door. Even a small amount of money, say $1000 or less, is enough to get started. In fact, with many of today’s apps, you can start investing with as little as $5. What’s important is that you actually get started today, as tomorrow may be too late.

The first step to investing is determining where you are financially and where you want to be. The best way to do this is to write everything down on paper; you have it in front of you in black-and-white. This makes it more factual, and there is no second-guessing as to where you stand.

You have a few main options when it comes to investing:

  1. Do it yourself online. There are a lot of places that will allow you to invest online with very little money. You will be able to choose exactly what you want to invest in, but the downside is that you will have to manage your portfolio by yourself. This is fine if you have some financial know-how and understand that investing is for the long term. You should also check to see what tools they have available to help you with your investments. Not all online brokerage firms or apps are the same, and, in many instances, there are such big differences. For my investing and my clients, I use and can recommend Charles Schwab.
  2. Do it yourself off-line. This often scares many people, but it’s not as difficult as it is made out to be. In reality, something as simple as a 401(k) or a Roth IRA is an investment. It would help if you still took some time to learn about the basics of investing and educate yourself on the various options available to you. A while back, I posted about debunking some of the myths concerning 401k’s and IRAs. To read that, please click HERE.
  3. Hire a professional. This is the traditional way of investing. However, as part of the first step to investing with a professional, you need to check their qualifications. Don’t just assume that they are qualified to do so because they are willing to handle your investments. Assuming they checked out, your main decision is whether to pay them upfront for their services, as a percentage of what they make for you or whenever you withdraw your money. A professional can help guide you based on their knowledge. To schedule a free 15-minute call, please visit my CALENDAR.

Regardless of which method of investing you choose, it’s important to get your financial affairs in order; this includes making smart investments. If you think you can handle yourself, then, by all means, do so; however, if you would be more comfortable using the services of a professional, then that’s the best way to go.

If you would like to learn more about investing and how the financial planning process can benefit you, contact me directly if you live in or near the Metro-Nashville area. For those outside of Tennessee or who prefer someone closer to you, seek out a qualified fee-only Registered Financial Consultant near you.

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