The road to financial freedom is paved with risks and rewards. Savings accounts are an excellent place to begin your journey, but making savvy investments must soon follow. In order to become a savvy investor, however, you must make your first investment and learn about more about the basics of the market. Follow these tips for making your first investment.
The Basics of Investing
First, you must determine your investing goals and choose an investment vehicle. Investment vehicles choices are numerous. You must make your selection based on which one suits your investment goals best. The rest falls neatly into place – a basic six-step plan.
- Determine your investment goals
- Choose an investment vehicle
- Open an investment account
- Start Investing
- Monitor and adapt
- Protect your investments
Determining Your Savings and Investment Goals
- Saving goals strive to achieve major purchases such as a car, down payment for a home, your child’s college education, a big vacation, etc. Savings should be kept in low volatile accounts, like a high yield savings account in a CD.
- Common investment goals include longer term goals such as retirement and keeping pace inflation Investment goals are goals that are in the distant future, where fluctuations in the market will not impair your plan.
The Best Investment for First Time Investors
The best investment for a first time investor is a target date fund, which is essentially a mixture of stocks, bonds, and other investments designed to have more risk while you are young, and then gradually transfer your funds to less volatile investments as you get closer to your projected retirement date. The management is done automatically. All you have to do is invest and the fund manager does the work.
Protecting Your Investments
Protecting you investments is the best piece of advice anyone can offer. You worked hard to build a savings, learned to invest, and successfully achieved financial gains – protecting all you have worked for is essential. And, your life insurance plan can evolve as your life and investment do. Life insurance offers you protection for the unexpected in life. It not only protects your investments, but it protects your family too.
Fortunately, finding the right life insurance company is not as nerve-racking as making your first investment. LifeQuote takes the worry and the hassle out of shopping for life insurance. LifeQuote only works with top-rated companies, and can help you find and inexpensive life insurance plan online. Call LifeQuote for a free life insurance quote at 1.800.521.7873 or get a life insurance quote online today.