Yusra3
VIP Contributor
Investing money can be a daunting and confusing task, but it doesn't have to be. Here are a few simple tips that will help you get started with investing.
1. Know what you want to invest in. If you're looking for the best way to diversify your portfolio, consider mutual funds or exchange-traded funds (ETFs). These investments typically share similar characteristics and are often offered by the same companies so they tend to be more stable than individual stocks.
2. Choose an investment advisor who is licensed and has experience managing your money. You'll want someone who has experience managing money in your situation and knows how much risk you can handle before recommending specific investments or strategies for your portfolio.
3. Make sure your investment advisor understands the tax implications of their recommendations and how those taxes will affect your bottom line over time (for example: if a client opens an IRA with $10,000 per year for 10 years, then receives $40,000 from Social Security at retirement, each year's IRA contribution would reduce his taxable income by $4,000 per year).
1. Know what you want to invest in. If you're looking for the best way to diversify your portfolio, consider mutual funds or exchange-traded funds (ETFs). These investments typically share similar characteristics and are often offered by the same companies so they tend to be more stable than individual stocks.
2. Choose an investment advisor who is licensed and has experience managing your money. You'll want someone who has experience managing money in your situation and knows how much risk you can handle before recommending specific investments or strategies for your portfolio.
3. Make sure your investment advisor understands the tax implications of their recommendations and how those taxes will affect your bottom line over time (for example: if a client opens an IRA with $10,000 per year for 10 years, then receives $40,000 from Social Security at retirement, each year's IRA contribution would reduce his taxable income by $4,000 per year).
