So good to see you all today!! We are going to have a short discussion on investing. How many of you are dabbling in investing? Did you start out young, or did you start investing as you got older? Are you investing on your own, using a broker, or are you in a 401K plan at work?
First of all, I want to say here, that I am 54 and prior to a couple years ago, never considered investing in any way. Since I have begun a little research I have learned more and wish I had started when I was quite a bit younger. Looking back I can see where investing would have been a benefit and though I can start now, obviously it won't have as much impact as if I had begun years ago.
First of all there is a major benefit by learning to invest when you are younger. Not only does your investment have more time to grow, but you will learn early on what works for you and be able to branch out some. Investing early, will also teach an awareness of money and how to budget and how to manage your money.
Most of the information I read said one of the best things to do is to get out of any debt before investing. Pay off credit cards and any other debts. Starting early can prevent having to go through this step. Once you have done this you should try to set aside enough funds to carry you through approximately three months without any income. This will be of benefit, should you become unemployed and is a means to get you through until you find a new job without touching your investments.
Now, most people think, "I do not have enough money to invest". It really does not take large amounts of money to get started. I learned about Robo Advisors. You can start with $100, and sign up through a Robo Advisor and they will make choices for you based on the information you input, like the amount you are able to invest, the amount of risk you are willing to take, and the amount of return you are expecting. Robo Advisors a are much less expensive route to go, because you will not incur the larger fees of working with an investment company. Be sure to check out the companies before investing through them.
There is also something called DRIP Stocks, where you can invest as little as $10. I need to do more research on this one. This method also avoids using a broker, so your output in fees is obviously less. You are actually investing in the company and you want to choose a well established company. This is a long term investment strategy, not a quick turn-around.
As with any type of investment program, diversity is a must. You don't want to put all your money in one place, just in case there is a problem you will have other options available.
Another form of investment is in real estate. If you have the skills to successfully purchase a piece of real estate and make repairs, this might be a viable option for you. You must of course have the extra money to invest and to have it tied up for the amount of time it takes you to make repairs and then resell. We personally know a couple of people who do this. This is of course a high risk if you do not know what you are getting in to, or you do not have the necessary skills to do repairs and upgrades. Before flipping a house consider what will go in to the full process.
Any one of these methods of investment will eventually produce a nest egg for your future. You can rest knowing that you have created funds for later on in life, and the ability to get through minor setbacks that life throws at you.
I hope this information is a benefit to someone. This really is just a general, basic post to give you some ideas on how you can invest and benefit from investing. Have some ideas? Share them in the comments. Thanks for stopping by, where neighbors share!!