Once you get to a certain age and you have some excess income, you might start thinking about investing your money for retirement or just to create even more income for you and your family. Before you jump right in however, you need to know more about what investing is, the risks involved, and why people invest their money.
How Well Do You Know Yourself?
First of all, contact a Portland financial advisor to help you get started. What you need to do is understand yourself and understand why you want to invest. If you’re investing because a friend or relative told you it was a good idea, then you need some more information, because this isn’t a solid reason to invest. You need to ask yourself if you can handle the losses and risks that come with investment. Investing doesn’t guarantee that you will make money, and you need to realize this. Really consider the financial and emotional risks that come with investing before going any further.
Know Which Types of Investments Are Right for You
Maybe your knowledge of investing has come from older relatives and you want to follow their advice. While it’s a good idea to get advice from seasoned investors, you also need to realize certain types of investments are good for everyone. For example, your relative might encourage you to invest in real estate because it worked out for them. However, with today’s real estate market the way it is, this might not be sound advice for you. Contact your local investment management services in Portland to check out the various types of investments available and then research them so you know how they work.
How Are Your Finances?
You may have excess income now, but what about for emergencies? Before investing, you should have two things: a sum of money to invest, and a secure savings account for emergencies. Your savings isn’t for investing, that’s what your extra capital is for. Your savings account is a cushion that will allow you to recover from emergencies without losing your capital.
Once you’ve considered all of these things, then it’s time to start investing. Another important thing to ask your Portland wealth manager is how to contact a reliable stock broker and how to manage mixed investments. After this, all you need is research and a well-managed portfolio and you’ll be ready to start your investment career.