Best Bets: Money Investment Strategies

The best money investment strategies can be difficult to figure out. You will read and hear varying opinions on what is best. Here are a few things to consider when it comes to investing your money.

Start Early

You should be thinking of retirement the moment you land your first job. If you invest 10% of your income as early as 18, you can almost guarantee yourself a hefty nest egg when you get to retirement age. Start contributing to a 401k plan as soon as you are able to. If 401k isn’t available through your employer then look in to setting up an IRA. The roth IRA is available with a low initial investment and less restrictions than a typical IRA account. Even if you are only setting up small CD’s, anything you can do to start saving is going to be a great step in the right direction.

Build a Diverse Portfolio

The best way to invest your money is to be diverse about it. If you spread your money throughout several different types of investments then the risk of losing a lot is much lower.  The market will fluctuate, this is a given and there is no avoiding it. If you have diversified your portfolio you have a better chance of weathering the rough times and enjoying the up swings.

Avoid Too Good to Be True Investments

Just as scammers have taken over many other aspects of life, the same holds true for investments. Avoid investing things without properly researching. Don’t take one persons word for an investment unless they happen to be your financial planner. Stay away from anything that sounds like a gamble or pyramid type scheme. Chances are if it sounds too good to be true, it is.

Get a Financial Planner

One of the best ways to set up great investments is to have a financial planner or advisor help you through the process. Asking for help should never be something you are ashamed of, especially when it comes to your money. Many banks offer free financial planning to their customers. Many employers also offer financial planning services as part of their benefits package. Even if you need to pay a professional, it’s a wise investment.

Study the Market

If you are planning on investing any money in the market, it’s wise to study it and learn all you can. There are thousands of books on the topic, just as many websites, and advice from professionals is available for the asking. The best way to invest smartly is to be smart about the market, the current conditions, and the fluctuations. With this in mind though, it’s best to steer clear of software programs that guarantee to find you the best stocks. While it sounds like a good idea in theory, most of the software programs simply do what you can do on your own and will cost you more money than it’s actually worth.

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