Momentum - Business to Business Online Magazine MOMENTUM February 2020 | Page 18

INDUSTRY SPOTLIGHT - FINANCIAL LITERACY & TAXES
KRISTI TREVINO
Financial Advisor
Edward Jones
www.edwardjones.com/kristi-trevino
NEW AT INVESTING?
Follow These Suggestions
I
f you’re fairly new to investing, you might be
wondering what sort of rules you should follow
or moves you should make. And while everyone’s
situation is different, there are indeed guidelines
that make sense for all investors. Here are some to
consider:
• Learn the basics. The investment world can seem
confusing, but the more you know about the basic
components, the more confident you’ll be when you
begin to invest. For starters, you’ll want to be familiar
with the essential types of investments: stocks, bonds,
mutual funds, government securities and so on. And
it’s also important to know that some investments
are designed to provide growth – an increase in the
investment’s value – while others provide income in
the form of dividends or interest payments, and still
others may offer growth and income.
• Set your goals. You need to know why you’re
investing – and that means you must clearly define
your goals. Do you want to retire early? When
you do retire, what kind of lifestyle would you
like to have? Are you planning on helping your
children (or grandchildren) pay for college? Once
you’ve established your goals, you can create the
appropriate investment strategy for achieving them,
taking into account your time horizon and risk
tolerance.
• Invest regularly. At first, you may only be able to
afford to put in small amounts to your investment
accounts, but even so, try to contribute regularly.
You’ll get into the habit of investing and, later on,
when you earn more money, you can ramp up your
contributions. If you have a 401(k) or similar plan at
work, the money can come out of your paycheck
before you even see it.
• Think long term. As you begin investing, it’s important
to have the right attitude. Specifically, don’t look for
the “hot” investments that will make you a “bundle”
in a matter of weeks. Investing just doesn’t work
that way – instead, it’s a decades-long process of
carefully choosing, managing and adjusting a
diversified portfolio that’s suitable for your
individual needs. And by maintaining a long-
term focus, you’ll be less susceptible to
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making ill-advised moves in response to short-term
market events.
• Don’t get scared off by downturns. If you invest for
many years, it’s inevitable that you will experience
sharp drops in the financial markets. But these
declines are actually a normal part of investing. If
you overreact to them by selling investments just
because their price has dropped, you’ll not only be
breaking a cardinal rule of investing – to buy low
and sell high – but you’ll also be disrupting the type
of cohesive, continuous investment strategy that’s
necessary to help you achieve your goals.
• Get some help. You may find it easier to navigate
the investment landscape if you get some help from
a professional advisor – someone who understands
your goals and family situation and who can make
appropriate investment recommendations. A
financial advisor can also suggest changes to your
portfolio in response to changes in your life (new
job, child graduating college, etc.) and in your goals,
such as a new date for retirement.

When you invest, there aren’t many
guarantees. But by following these
suggestions, you will know, at the very
least, that you’re taking the steps that
can lead to success.
This article was written by
Edward Jones for use by
your local Edward
Jones Financial
Advisor.