Best tips for investing
Published 12/20/2021
If you want to start investing, the first thing is to be very clear about the objective you want to achieve with that investment. For example, do you want to save for your pension? Do you want to save for your first apartment, or do you want to save to ensure your family's future? Each of these objectives is very different, right? And for this reason, you must know that the risk you must be willing to take for each of these projects is also very different.
Why is it important to start investing?
When you look for places to invest your money or where to invest money without risk, you find a lot of information, which can throw you back and make it difficult for you to start.
Investments resulting from the money saved by implementing a financial planning program pay off and help you achieve fixed goals. If saving has been a constant within your financial planning, the time will come when you can put those savings to work to help you achieve your goals. That is the best support you can count on because your capital works for you and to make you earn more money.
A key investment goal can keep up with the cost of living. If you overprotect your money, you could miss out on earning enough to keep up with inflation or rising prices as time goes on.
Tips for investing in a better way
1. Map out your financial goals
Before starting to invest, you should think about what you want to achieve so that you can identify which assets and investments allow you to achieve your objectives and goals in the short, medium, and long term. If it is about short-term goals, the investment will be different from long-term goals.
If, for example, you already save for your retirement, you probably invest in bonds and stocks, and you can be riskier because you will have the time to understand when it is a good moment to invest and when you have to wait to do it. But suppose you are looking to invest in something you want to achieve in twelve months, such as taking a trip. In that case, you will look for a product that offers greater liquidity to recover the money quickly and with little volatility. Ask yourself what the goal you want to achieve with that money is and when you will need it to make the best possible investment.
2. Consult an advisor.
Some investors choose to consult personal financial advisers who help them select the investments that suit their needs. However, many advisors require a higher level of assets than you might have when you start out and generally charge more in fees than an online program, so this may be an option for later when your portfolio grows.
3. You should follow your investment.
Check periodically. It is necessary to verify the way your investment advance in order to check if you are getting the results you want. If you see that it is not working in the way you want, consider changing the tool to refocus the path.
4. Consider the risk
Regardless of the amount, you must first consider the relationship between the risk assumed and the expected return when you want to invest. In general, the higher the risk in the investment, the higher the return it should offer. There are few cases in which the risk is minimal, and the profit is high, explains Julián Villamizar, stock market advisor. It should be reviewed very carefully when you receive an offer of a high rate of return with very low risk or, as it is commonly said, almost inevitable. The second aspect to consider is the risk profile of the investor. Not all people are willing to assume the same level of risk in exchange for a specific return. In general, people do not take risks.
Remember that there are different ways to invest money. You must analyze your specific situation to achieve the expected results.
At El Paisa Multiservices we want to help you with your financial movements. You can contact us if you have questions about our services.
By Ingenuity & Solutions
