Beginner to Expert Investor: Tips & Tricks

Quick tips: Here’s what you need to know to become an investment expert in no time

You’ve hear friends, family, financial experts tell you time and again to put your money in the right places. But what exactly does that mean when you’re still at the beginner phase of financial management. The stock market can be a pretty daunting place filled with investment jargon and risks you might still be too anxious to take.

Don’t fall into the trap of becoming paralyzed even before you start. The key is to stick to investment basics and keep at it. But to help you out better, we’ve come up with these quick tips.

What assets are you interested in?

The three most common types of assets to invest in are: stocks, bonds, and real estate. Decide which of these three are you looking to own and grow in the long run to be able to make the first step.

Here’s a piece of advice, if you’re in your 20s, 30s, or saving for retirement, go for stocks and be sure to keep the money there for decades to make them grow. And if you’re in your 50s and retiring in a few years, try the bonds route. While these have lower return expectations, they’re considerably more stable than stocks. On the other hand, real estate is almost always a safe choice regardless of age. The catch here is to find the perfect location for the type of real estate.

How do you want to own those assets?

There are two types of asset ownership. One is through outright ownership which means you will be buying shares of individual companies directly. The other is pooled ownership which allows you to buy ownership in a number of companies by mixing your money with other people.

What you have to keep in mind is when you choose outright ownership, you need to have a deeper knowledge in investments and financial management. While if pooled ownership is the track you choose, there is a risk of near total loss of control because all decisions will be coursed through a small group of people with the power to change your allocation.

Build your investment portfolio

People may say that you can start thinking about your investment portfolio along the way. But our advice is to already have a clear picture of how you will build your investment portfolio. Now that you’ve decided which assets you want, and how you intend to acquire them, you can start focusing on actually investing.

Keep your eyes peeled for wonderful, fresh companies you’ll want to put your money in and purchase it — but always when the price is right. As you do this, ensure that your investment portfolio becomes bigger and more diverse.

There are a lot of different advice when it comes to investing. It’s more than fine to hear all of them out, but be wise enough to make your own financial decisions. And the best way to ensure you’re making the right ones is to talk to a financial advisor while you do your own research, so you get expert advice while ensuring that your money grows your way.