By: Neerja Caprihan
While the world is in a wait-and-watch mode to see where the markets are headed, it may not be a bad idea to use the time to understand and explore the world of financial planning. If you are one of those who have shied away from investing all this while, this encouragement is for you. Hard work and savings are all very well. But investing can be a powerful way to achieve your financial goals, whether you’re wishing for a dream home with a family, planning to soak in the sights of the world, building a nest for retirement, or simply looking to grow your assets over time. Investing in portfolios is a bit like assembling a team of players with different skills, to win a game. And every game needs preparation, practice and patience.
So before we dive into the details, let’s start with the basics. Now, investing and finance are for adults what math is for most youngsters. One is scared of looking at them even before one begins, thanks in part to the formidable reputation such topics garner over the years. It is only once you try to figure it out, you realize there is sometimes a lot of jargon out there, and an equal amount of conflicting information. Too many stories and scares. And the reality is not as worrisome. So, how does one find one’s way through the maze of the investing world?
Here’s a quick guide to demystify, and de-stress the process of investing. It’s conventional wisdom, summarized in the 3S’s that unravel the basics of not just investing beginnings, but just about any beginnings. Three simple keywords, as simple as our three client signup steps.
- Study: One, read and arm yourself with all the information. There is an unending amount of information available on the internet these days. Find content suited to your personality and interest, and explore the leads.
- Small: Two. Start small and work your way to bigger and bolder decisions once you are comfortable. It’s good to be ambitious and aspirational, but you have to work your way up judiciously. Even the moonwalk needed a first step. And see how far that’s come.
- Start: Three, just start. Not everyone can become Warren Buffet, but you never will unless you at least make a beginning.
At the same time, it’s always good to speak with your peers and see how they are getting on. There is no dearth of advisors and even robo-advisors now to make the process easy for beginners and experts alike. As long as one shows perseverance, the journey can be steady and successful, even if slow. If an advisor or website does not appeal to your sensibilities, move to others until you find one that suits your needs and preferences.
Remember, investing is a long-term endeavor, and while there are risks involved, there are also significant rewards. In this journey, you’ll discover concepts like diversification, risk management, and asset allocation, which are essential to building a robust portfolio. More information on all these is available here in bite-sized pieces that are quick to read and easy to comprehend.
While we offer simple investing for smarter investors, we also simplify investing for starter investors. Try for yourself. We are here to help.
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