We are ready to start investing.
Now what?
Have you made the decision to start investing your money? If so, make sure you are prepared to ask questions! Investing your hard-earned money in the right products with a properly licensed advisor is crucial to not only getting a return on your investment, but to keep you from getting scammed. Make sure to educate yourself prior to writing that check.
The best way to guide your investing is by determining your investment plan. Take some time to answer these three important questions:
Why?
For what is it you are saving? Are you preparing to buy a house or to pay for your child's college education? Knowing why you are investing is key to picking the right product.
How long?
Some investment products are designed for short-term goals while others focus on long-term goals. Learning about the different types of investments will help you determine if they meet your long- or short-term goals.
What is your risk tolerance?
Your risk tolerance is essentially how comfortable you are with big gains and losses versus smaller gains and losses.