The investing category lists personal finance tips that can help you with investing.

Start investing in a personal investment account after you have maxed out your retirement accounts

Until you have maxed out your retirement accounts hold off on investing in a personal investment account. Prioritize saving for retirement first. Then, once you have maxed out your annual contributions to these accounts, invest on your own.

When you can afford it, hire a professional to manage your investments

When you have the money, consider hiring a financial advisor to manage your investments. This can be an excellent way to help you prepare for your financial future and achieve your goals. Just make sure you hire the right type of financial advisor for you. Having a professional manage your investments can help you big time in the long run.

Know exactly what you are paying in fees

When you invest in the stock market, you end up paying fees in some capacity. Whether it is fees from the funds you invest in, the brokerage firm you use, the financial advisor you hire, or a combination of these – you are going to pay fees. The amount of fees you pay varies and can be tricky to figure out. Make sure you know how much you are paying in total fees. You can look at your fee schedule on your investment account statement (specifically at the expense ratio of the portfolio) in addition to adding out of pocket fees you pay for services you get with your investments. Fees are sometimes hidden and tricky to find. Make it a priority to know what you are paying in total fees so you are not duped into paying more than you should be paying.

Rebalance your portfolio

If you invest in the stock market, you need to rebalance your portfolio. It is generally not a good idea to invest and never look at your portfolio again. Rebalancing is when you buy and sell assets to match the asset allocation you originally decided on. If this sounds foreign to you, that is okay. But if you are investing in the stock market and you do not know what rebalancing is, take time to learn more about it so you do not sabotage your efforts. Rebalancing is important.

Pay attention to asset allocation

Asset allocation is the plan you set for your investments. Your Investment plan is more important than your actual investments. If you decide the plan for your portfolio is 75% equities, 15% bonds, and 10% market diversifiers, this is your plan or asset allocation. Depending on who you talk to, it is arguably more important than the actual equities, bonds, or market diversifiers that you have in your portfolio. If you are investing on your own, without a professional, take the time to learn about asset allocation – it is too important not to.

 

Until next time.

The MoneyShop Team

 

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.