Ready to Start Investing? Here’s How
Ready to Start Investing? Here’s Howv
Are you still sitting on the sidelines when it cones to investing? Of course, not everyone is in a position to start investing. But if you are, and you haven’t started, then what are you waiting for? Investing is one of the smartest things you can do in terms of your financial security. So, even if you only have a few hundred dollars available to invest, you should go for it. Here’s what you need to know.
When to Start?
The simple answer is start as soon as you can. Of course, you can’t be reckless. You have to take care of your regular monthly living expenses, like food, rent, utilities, etc. However, any money you spend on non-essential items–like cable, eating out, and shopping sprees–could be used for investing. You have to start by earing enough money to take care of your living expenses. Next, you should have enough extra cash saved up to cover your regular expenses for about three months. If you still have extra income after that, then strongly consider investing. The bottom line is the sooner the better.
Why Start Early?
Here’s why. Starting as soon as you can gives you more opportunity to save and plan for the future. In fact, depending on your current age, there may not be anything left over for you from the Social Security administration by the time you’re old enough to start receiving payments. Getting into the game early gives you a better chance of ending up on the positive side, because you have more time to survive the ups and downs of the market.
What to Invest in?
If you’re ready to start, the next move is deciding what to invest in. There are plenty of options, including stocks, bonds, and mutual funds. Each of these has pros and cons, so you’ll have to decide which one, or how much of each, you want to invest in. You can base your decision on your investing goals.
Stocks – when you invest in the stock market you are essentially buying a portion of the company that is offering the stock. You can buy stocks for both the long-term and the short-term. Stocks are riskier than bonds.
Bonds – when you invest in bonds you are actually giving your money as a loan to the entity that is taking it. The government entity, or company that borrows it agrees to pay you back within a certain time frame, and you collect interest during that time period.
Mutual Funds – using a mutual fund takes much of the hard work out of the equation, as the fund actually decides what to invest in for you, based on your investing goals and criteria. You can either choose very risky mutual funds, which usually have a higher reward, or low-risk funds, with smaller rewards. Actually, mutual funds come in all risk levels, so you’re best off choosing the risk level your most comfortable with.
How to Invest?
There are many different answers to this question. But essentially, it comes down to what you hope to accomplish with your investments. As a general rule, the longer amount of time you have to reach your desired goal, the higher percentage of your income you should put into investing. Everyone is different, but if you can invest at least 10 percent of your yearly earnings, then so much the better. Investing doesn’t have to be scary or too complicated. You can start with just a few hundred dollars and build from there. But the bottom line is you should start as soon as you can.
We hope you found this article about “Ready to Start Investing? Here’s How” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
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See Lynn Thomas’ Recent Interview with Alan Olsen: https://youtu.be/0VFOWFl3wqk Lynn Thomas has been helping clients unlock success, one idea at a time by executing tailored client presentations that deliver extraordinary client experiences. Her firm specializes in creating and implementing plans based on new tax laws and the ever-changing market research. Lynn connects with her clients…
See Dr. Lee Hood’s recent interview with Alan Olsen: https://youtu.be/60DDZ0MJ8QE Dr. Lee M. Hood is best known for his development of technologies which have enabled the advancement of predictive, preventative medicine. Dr Hood’s journey began at a young age, when he was an assistant professor of molecular immunology at California Institute of Technology in 1973.…
See Ali’s recent interview with Alan Olsen on Youtube: https://www.youtube.com/watch?v=MJyKKqTCaBM Ali Nasser is a serial entrepreneur who has been helping business owners for nearly twenty years. He understands the legacy dilemma and financial freedom that many business owners face when it comes to their life experience, which is why he has developed a powerful and…
Transcript Alan Olsen Welcome to American Dreams. I’m here today with Lynn Thomas. Lynn, welcome to today’s show. Lynn Thomas Thank you for having me on. I’m delighted to be here. Alan Olsen So Lynn, for the listeners, you have a remarkable career. I think you started out with Arthur Andersen. Lynn Thomas Yes, I…