Smart Investment Advice for Newbies

Smart Investment Advice for Newbies helps pave the way to clever long term Financial Planing.  For most of us new to Investing even the idea of investing money can be more than a little intimidating, especially if you are thinking of doing so for the very first time. It’s all too easy to become confused, overwhelmed and even a little scared. The fear of making a wrong move and losing it all is one that plagues most new investors and they are often not helped by strange to them financial terminology and sometimes rather conflicting popular advice.

If you have been thinking about finally getting into the investment ‘game’ here are some smart tips that will help you head into this new financial adventure with a lot more confidence and, hopefully, success.

Smart Investment Advice for Newbies

No1. Make Sure You Build a Diverse Portfolio

Probably the oldest piece of investment advice in the book is ‘buy low, sell high’. And the second is to make sure that you diversify your portfolio. On the most basic level this simply means that you won’t be putting all of your eggs in one basket. If you share your money between several different financial products you will protect yourself, to a certain degree, from catastrophic losses. If one of your investments loses value as there are others to fall back on the chances are good that at least one of them will perform well and all will not be lost.

Smart Investment Advice for Newbies

No2. Slow and Steady is the Way to Go

Sinking a lot of money into your very first investment is not only scary but it’s also not very wise. After all, you’ve worked hard for this money and making it all back would probably take more than a while. That’s why it is wise to start small. As you learn, and gain confidence, in this new venture called wealth building you can invest more and in higher risk financial investments that may bring you even better results than you had hoped for.

Smart Investment Advice for Newbies

No3.Be Ready to Do Your Homework

You don’t have to have an economics degree to understand the basics of investing. What you do need is an open mind and the willingness to spend some time researching and learning. While it’s certainly true that past performance does not guarantee future results by any means examining trends and past results can be a great help when choosing just what ‘eggs’ to put in your investment basket.

For example, if you are considering investing in mutual funds spending some time really reading the prospectuses is a must. Yes, it’s true that often fund managers will use some flowery prose to make their offerings more appealing, but they are required by law to report the real facts as well, even if they have a tendency to bury them in smaller print.

Smart Investment Advice for Newbies

No.4 Don’t Get Spooked

In the end, investing money will always involve a certain degree of risk. It is, in many ways, a form of gambling, just one that usually, if you are careful, has a lot better odds than taking your savings to the blackjack table. This does mean however you will have to be prepared to deal with uncertainty. However, getting spooked by all of this isn’t going to help.

If your first investment falls in value don’t rush to sell it off in a panic. Instead take yourself to a good financial adviser to get some solid advice. And at the same time pick their brains as to how you can make better choices in the future.

And finally, it’s important to remember that you won’t be an investment newbie forever. It’s OK to be nervous at the start but the potential returns – and future financial gains and stability – that are possible through sensible investments are not something to give up on easily. If it helps you should know that even the likes of Warren Buffett have regrets about their early forays in the investment markets but he did what you should; learned from his mistakes and moved forward, and we all know where he ended up don’t we?

We hope this Smart Investment Advice for Newbies has helped a little in easing your fears, however our final bit of advice and perhaps most important, is to talk to a Financial Adviser . Or simply fill in the form and a Professional Consultant will call you back.