How much time should I spend learning about investing before starting? Is it worth it or would it be better to start with something else? Every beginner investors start from zero.
When you invest your money, you hope to earn more than you put into the investment. The question then arises whether you should start investing early or later.
In recent years, investors have started to focus more on their long-term returns rather than immediate gains. This has led to a growing demand for investment professionals who can guide them through the various stages of investing. A good choice for beginners would be to contact a financial advisor like Factum Financial in Phoenix, besides the following investing options.
6 Top Investing Options for Beginners
- Stocks – If you are looking at investing in stocks then I would recommend getting familiar with the stock market before jumping right in. There are plenty of resources out there that can help you get started. However, if you have no idea what you’re doing or where to start, I’d suggest going with mutual funds. Mutual Funds are great because they allow you to invest in various companies that fit your investment strategy without having to worry about picking individual stocks. You can focus solely on building wealth while the fund takes care of the rest.
- Real Estate – Owning real estate has been one of the best investments over time. Whether you live in a city or country, the land is constantly increasing in value, thus meaning people who own land tend to do well financially.
- Gold/Silver – While this isn’t something I would ever put money down on, buying gold or silver IS a good way to hedge against fiat currency devaluation from central banks. With everything that’s happening in the world today, including economic instability, inflation, and low-interest rates, owning physical assets (like precious metals) provides passive income and hedges against financial loss.
- Paper Assets – Like real estate, paper assets like collectible coins and stamps have increased dramatically in value. This makes them a worthwhile asset to purchase!
- Index Fund /ETF – As we’ve seen recently, the stock market is volatile and investors should avoid putting all their eggs in one basket. By purchasing an index fund through your broker, you effectively diversify your portfolio and spread risk across multiple industries and countries. Just remember, not all index funds are created equal. Read below to find out how to choose a quality one.
- High Yield Bonds – Another form of paper asset class, high yield bonds offer higher yields than traditional treasury bonds. They generally start off around 10% and move up to 20-40%.
Making the best investment decisions comes from personalized financial advice
Many people think they don’t need an advisor but many times their needs are not being met. Some people feel like they cannot afford one. Others may be confused about what they should look for in a financial advisor or how a financial advisor will benefit them. Take advantage of the best financial planning in Phoenix by contacting Factum Financial.
Whether clients are overcoming debt, creating lasting wealth, or simply trying to achieve financial freedom, Kyle from Factum Financial can assist with personalized investment advice.