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Just getting started in investing? Here are 5 tips for young investors


Although the stock market is volatile right now, it can be a great place to start investing.

Millennial Americans — ranging in age from 22 to 40 — are famously wary of the financial markets. Dotcom busts of 2002 and 2004 as well as 2008’s financial crisis will lead to market collapses.

Matthew Ricks is a certified financial planner and president at Haystack Financial Planning Syosset. However, many have not been able to take advantage of the greatest bull market ever.”

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However, young investors have the advantage of being able to save time. You can compound your returns for decades if you are consistent with saving and investing in the financial market. It’s possible to start slowly but still get going.

These are five important things to remember for young investors.

1. Credit cards must be paid off first

Investing is always a good idea … unless you have a fat balance of high-interest-rate debt sucking up cash flow.

Amanda Campbell, certified financial planner, vice president of Wealthspire Advisors Fulton Maryland, stated that credit card debts with high interest rates should be paid off before investing.

According to the Federal Reserve’s average credit card rate of 16.15% last year, it’s almost certain that you will lose more interest than what you make on the market. Savings of 7% [return]She said that feeding your pocket with money you don’t have is a good idea.

Campbell says that lower-cost student loans or mortgage debt won’t prevent you from investing. Campbell says, “As long as your interest rates aren’t too high.”

2. Know what your goals are

Ricks stated that each dollar must have a purpose. You should consider what you’re saving money for before you make any decisions about how to or whether you will invest your cash in public markets.

Ricks said that saving money for retirement will not look the same as if saving to buy a home or for a down payment. Don’t invest the money in stocks if you don’t intend to make use of it within the next few years.

You can ensure the money is available when it’s needed by a certificate of deposit or a money market account.

3. Take the time to know yourself

What is your hate for losing money? If you answered yes, then it is time to invest. Ricks advised that you be honest with yourself. If you’re not able to handle the high-fashion trend, but want to keep up with it, be honest about your feelings.

It is a common trait for millennials to be conservative. Ricks said, “I have reviewed many accounts for my millennial colleagues and clients. They are usually not as aggressive and as knowledgeable as academics suggest.”

This boils down to your ability to rest at night, without worrying about investments.

Amanda Campbell

Vice President at Wealthspire Advisors

You don’t need to invest in 80% of the stock market, even if it is “appropriate” for someone younger than you. You can start where you are comfortable, and make adjustments as you go.

Although you may not yet know your tolerance for risk, it is possible to find out what happens when the markets drop. Campbell said, “It boils down to whether it is possible to rest at night without worrying over your investments.”

4. It’s easy to keep it simple

Follow your passions if you believe in cryptocurrency or are interested in technology trends. Keep your long-term goals for savings in mind when you invest. Also, don’t invest too much.

Campbell said, “Treat it like Vegas money.” It is possible to lose your money.

5. Help is available

Long-term growth is the goal of investing. Getting advice about how to invest and how to build a portfolio that will deliver long-term results is crucial. Although young investors might not be able to afford a financial adviser, online platforms such as the robo-advisors or brokers like Schwab and Fidelity can help them create an investment plan. These platforms are worth exploring.

Campbell stated, “You don’t need to be crazy or do it all alone.”