How to Start Investing

Whether you have come into a lot of money or are just looking to put away a little each month to try and grow your money for the future, it can be a good idea to learn about investing. Over the years, the incremental increases in money that comes from investing can really build up and help you out in the future. If you want to get into investing, here is everything you need to get started.

What to Consider Before Investing

There are many things to think about before you start putting your money into investments.

Firstly, be sure to think about risk. All investment carries a level of risk. Some investment types and portfolios carry a higher risk. This can mean bigger returns in the short-term. However, portfolios with such high risk can lead to losing a good amount of money.

Another thing to consider is what are your reasons for investing. Do you want to use the money in a few years’ time? Then invest in a portfolio with high returns for the short term so your money can grow at a fast rate. Conversely, do you intend to use the money for retirement? Then, it’s best to invest in a lower risk portfolio.

Lastly, if you are going to invest, taking advice from a trusted wealth management company is a good idea — especially if you are investing large sums of money.

Types of Investment

Stock Trading

Stock trading involves holding stocks and shares in a specific company. You can buy and sell these through a stockbroker.

Portfolio Investing

Many wealth management companies have portfolios that are already created out of stocks, shares, and bonds.

Gold and Silver Investments

Precious metals, particularly gold and silver, are popular investments with a 24/7 market. Since these metals are always in high demand due to being limited resources, the market is evergreen.

You can invest in precious metals by physically buying bullion or using a virtual platform, where a broker holds your gold, silver, or other precious metal.

Bonds

Bonds are used by the government or companies to raise money. Investors buy into a bond, which is repaid with interest in the long term. Although bonds offer a low-return, they are low-risk.

How to Save on Fees and Expenses

There are a couple of simple ways you can ensure you save on investment fees and expenses:

• Use a Zero-Commission Investing Account: Commission-free brokerages have become the norm in recent years and allow you to make transactions without incurring costs.
• Use Low-Cost Index or “Tracker” Funds: Index funds are passively managed and follow an automated investment strategy that mimics the stock market. Since these funds require less staff to operate, they are usually very affordable to use.

Search for Professional Advice

If you are looking to start investing, it is a good idea to seek as much advice as possible. Our guide is designed to help beginners, but you should always seek professional, expert advice if needed to ensure your money is safe.