Clueless about investing? Check out these simple investment tips to help you get started.
Investing may seem complicated, but you don’t need to memorize financial tricks and terms to understand everything. These are the simple things you should know by heart to get you started on your journey towards growing your money.
1. Start early and invest for the long term.
The earlier you invest, the bigger your money will grow, especially when you invest for the long term. Besides, starting early allows you to develop good money habits that will last you a lifetime. It may even allow you to retire early.
2. Automate your money management system.
Once you’ve decided on how much you’d want to save or invest every month, set up an automatic transfer from your bank account so a portion goes to investments. This is more convenient and effective rather than forgetting to do so every month.
3. A big or small amount matters.
Don’t wait to accumulate a big amount to start investing. A small amount can be invested, too. After all, if you’ve just landed a job, you can start small and when your mind is set on your financial wellbeing, you will be motivated to save for a bigger investment. Go with the required minimum, then add in the succeeding months.
4. Don’t put all your eggs in one basket. Diversify.
This may be one of the oldest investment tips in the book, but it still remains a wise strategy. Do not put all your money in one investment fund or investment plan type. Invest in different funds and spread your money across different types of investments. For instance, FWD Life Insurance’s Manifest is a unique product with distinct features and other built-in benefits to mitigate risk, reward you for investing more for longer, and protect you as you grow your wealth.
5. Buy blue-chip stocks.
If you want to invest in the stock market, invest in a blue-chip stock or shares from large, well-established, and financially sound companies that have operated for many years. Since these companies are considered “giants,” they are more stable and are not likely to go bust.
6. Invest in variable life insurance.
You can also grow your money while getting life protection. Popularly known as variable life insurance (VUL), these plans provide you with both a life insurance and investment component. FWD’s investment-linked insurance plans like Set for Life and Manifest offer lifelong protection and earnings through an investment fund of your choice. If you have the appetite for regular dollar payouts, you can also check FWD’s Dollar All Set Higher—an investment-link insurance that fuels your investments via global opportunities.
7. Pay attention to fees and commissions.
Actively managed funds have higher expense ratios than index funds. The lower the fees, the more you can put in your investment.
8. Assess your investment portfolio annually.
Be aggressive when you’re younger, more conservative when you’re older. You can hold more stocks at the beginning and then rebalance your portfolio with balanced or bond fund afterward.
You now have a basic guide when it comes to investing. To further learn how to grow your hard-earned money, set an appointment with an FWD financial advisor today and take advantage of our free financial consultation.
Believe us when we say it’s an exciting thing to watch your investments grow as you progress in life, your savings, and your career.