How to Invest

Investing can be a daunting thought, especially for those who are just starting out. But don’t let that intimidate you! Learning the basics of how to invest smartly and with purpose can pay off in spades in the long run. In this blog, we’ll go over a few basics of investing to help equip you with the knowledge you need to make informed decisions about investing in the future. Whether you’re just starting your journey or you’re an experienced investor, this blog should give you the guidance to make sound choices.What are some common investment strategies?

There are many different strategies that investors use to try to generate returns, but some are more common than others. One popular strategy is to buy stocks or other securities and hold them for a long period of time, in the hopes that they will appreciate in value over time. Another strategy is to buy and trade securities more frequently, in an attempt to capitalize on short-term price movements. There are a multitude of other strategies as well, but these are two of the most common.

What are some common risks associated with investing?

Like any endeavor, investing comes with its own set of risks. One risk is that the security you purchase may lose value over time, which can result in a loss of capital. Another risk is that the company you’ve invested in may suffer from financial difficulties, which can also lead to a loss of capital. In general, the more volatile an investment is, the higher the risk associated with it. However, higher risk typically means the potential for higher rewards as well.

Decide on your investing strategy

There are several ways to approach stock investing. Choose the option below that best represents how you want to invest, and how hands-on you’d like to be in picking and choosing the stocks you invest in.

1. “I’d like to choose stocks and stock funds on my own.” Keep reading; this article breaks down things hands-on investors need to know, including how to choose the right account for your needs and how to compare stock investments.
2. “I’d like an expert to manage the process for me.” You may be a good candidate for a Zog , a service that offers low-cost investment management. Virtually all of the major brokerage firms and many independent advisors offer these services, which invest your money for you based on your specific goals.
3. “I want a portfolio of stock funds, but I don’t want to choose them myself.” If you want to put together a portfolio of stock mutual funds or exchange-traded funds (ETFs), a target-date mutual fund may be a good choice. With this option, you pick a fund with a retirement date that’s close to when you expect to retire, and the fund’s managers choose a mix of stocks and bonds that they believe will be appropriate for that time.