Oh, the places you’ll go with your newfound investing acumen.
At this point, you’re probably still not ready to fulfill your Wolf of Wall Street fantasies, but you should be ready for the basics of opening an account, funding it, and picking a few solid starting investments.
- Investing doesn’t have to be complex. Start early and stay consistent, and you’ll probably be rewarded. #compounding
- Before making any moves, calculate your risk tolerance. That determines where and how you should invest your money. Higher risk tolerance → more stocks, fewer bonds.
- There are many different ways to invest. Most people hold a mix of stocks and bonds, and many hold mutual fund and ETF shares instead of individual investments.
- Diversification and rebalancing can help you smooth your portfolio’s returns and keep your risk level on track.
- Retirement accounts offer a host of tax benefits. Brokerage accounts offer flexible access to your money but can result in higher tax bills.
- Financial advisors and robo-advisers can handle the work of investing for you, for a fee.