Five tips for do-it-yourself investors who are just starting out
Many people are afraid to enter into the world of investments, but you can try it on your own with some basic advice.
09:52 20 December 2013
Tackling the world of investments on your own can be too much to handle. If you want to invest but do not have the money to get advice from a financial professional, or you want to learn everything possible about investing, there are a few ways to try it with minimal assistance.
- Research—when you are learning to invest, you need to research as much information as possible. Find out the various options available to you, and take advantage of special tools like retirement calculators that can help you determine how much you will need by the time you retire and how much money you will have to save each year to reach your goal.
- Resources—using all your resources can help you find the information you need without wasting too much valuable time. Research is necessary, but you may find advice quickly in financial magazines and websites. You may even be able to subscribe to receive related information to an email address automatically. Be smart about how you can gain the best information in the most efficient way possible.
- Guidance—there are websites, as well as local groups who may be able to provide answers to simple questions, or a certain about of guidance while you try to figure out your investments. These may be less expensive than a traditional financial professional, or there may be no cost at all involved.
- Small print—if you try to undertake investments without much help, make sure that you read the small print and exceptions in any information. The slightest misunderstanding or oversight could end up costing you a lot of money, or worse.
- Variety— do not just set up just a savings account. Consider savings, ISAs, property investment, business start-ups, and bonds. The ultimate goal is to take on investments that bring lower risk, with higher level return rates.