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Saturday, July 12, 2008

Beginner Investing



From the Hoss's Mouth

Beginner Investing

Investing, in The Hoss's opinion, should not be considered unless or until you have:
  • Eliminated debt or the debt you have is classified as good debt
  • Have set up a budget which provides funds for investing
Remember that old cliché: Don’t put the cart before the horse." That is exactly what you would be doing if you start investing before you have successfully completed the above steps.

If you have been reading this blog faithfully, you have already decided what you want to accomplish with your money. Now it's time to refer to your short, intermediate and long term goal lists that you established when setting your financial priorities, and decide on a beginner investing program which will assist you to achieve these financial goals. Increasing your wealth is like building a house; you start with a proper foundation. After the foundation is set, you can expand your investments.


beginner investing


The Hoss understands that the world of investing is indeed complex and foreign to many people. The mere though of comparing stocks, bonds, mutual funds, term deposits and the like can be as difficult as understanding the daily racing form. If you do not understand your investment choices, there are many financial advisors available to assist you with these tough decisions. My next blog will provide information that will aid you in selecting a financial advisor.

You, and/or you and your financial advisor ,will have many things to consider when creating your personal beginner investment plan:

  • How much money is available for investing?
  • What is your tolerance for risk: high, medium or low?
  • Which investment products best suit your risk tolerance level?
  • What do you know about the stock markets?
  • How familiar are you with mutual funds?
  • What asset mix will best achieve your financial goals?
  • Will your employment income remain constant or is it subject to change?
  • What is your investment time horizon?

The Hoss reminds you that you, and/or you and your financial advisor, must monitor your investment portfolio on a regular basis. When required, make adjustments to keep your portfolio in line with your beginner investment objectives.

Future posts of this blog will contain detailed information on stocks, bonds and mutual funds; what they are and how to purchase them.

Stay on track,

The Hoss

Previous Post: Banking and Finance

The next Hoss Cents Free Financial Money Magazine post: Choosing a Financial Advisor


Posted by Money Magazine Hoss at 5:00 AM
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1 comment:

  1. UnknownNovember 25, 2008 at 8:21 AM

    Thanks so much for this great info about beginner investing! Too Shy to Stop writer Justine Lorelle Blanchard just wrote an article about stock market trading for first-time investors, which you can read here.

    ReplyDelete

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