Many people shy away from investing because they think it’s too complicated or risky. But the truth is, with a little research and careful planning, anyone can start investing. And there are plenty of investment products out there that are perfect for beginners. In this blog post, AG Morgan Financial Advisors will discuss how to get started in investing and what some of the best investment products for beginners are.
Investing can seem like a daunting task, but it doesn’t have to be. Here are a few simple steps to get you started on your journey to becoming an investor:
- Figure out your financial goals. What are you hoping to achieve by investing? Do you want to retire early? Save for a child’s education? Build up an emergency fund? Once you know your goals, you can start thinking about which investment products will help you achieve them.
- Do your research. There’s a lot to learn when it comes to investing, so it’s important to do your research before you dive in. A good place to start is by reading books or articles on investing, attending seminars or webinars, or talking to a financial advisor.
- Choose the right investment products. Not all investment products are alike, so it’s important to choose carefully based on your individual circumstances and financial goals. For example, if you’re risk-averse or have a short time horizon (meaning you need to access your money soon), then low-risk investments like bonds may be a better choice for you than higher-risk options like stocks.
- Start investing! Once you’ve done your research and chosen the right investment product for you, it’s time to start investing! The sooner you start, the more time your money will have to grow. Keep in mind that there’s no “right” amount of money to invest; even if you can only afford to invest $10 per month, that’s fine! Every little bit counts.
Now that we’ve discussed how to get started in investing, let’s take a look at some different types of investment products that may be suitable for beginners:
- Savings accounts: A savings account can be defined as a type of bank account where you can deposit money and earn interest on it over time. Savings accounts are typically low-risk and offer relatively modest returns (the interest rate paid on savings accounts is often lower than the rate of inflation).
- GICs: GIC stands for Guaranteed Investment Certificate. A GIC is defined as a type of savings product offered by banks and credit unions where you agree to deposit money for a set period of time (typically 1 year or more) in exchange for earning interest on your deposited funds. Like savings accounts, GICs are low-risk and offer modest returns; however, they tend to offer slightly higher rates than savings accounts due to their longer terms (i.e., 1 year vs 10 years).
The most important thing is to figure out your financial goals and then choose an investment product that will help you achieve them.