Tips For First-Time Investors

If you have a young family and your income has grown to the point where you can start investing, this is the time to create a wealth-generation plan that will lead to a secure retirement. To say it matters what you invest in would be the understatement of the century and the general rule is: the more risk, the higher the returns. 

Here are a few tips for the novice investor who is looking to make a start.

• Understand Investment Terminology – There are quite a few terms that you need to understand and the Internet hosts all the information you need about the terminology used in the world of investment. Indeed, you can easily find an A-Z list online, which gives you the basics to help you understand how investments work.

• The Stability Of Gold – If you want to know how to buy gold, there’s an Adelaide gold bullion dealer who can help you if you live near the area. If you live somewhere far from the area, Google is your best friend in finding a dealer nearest to you. Once you forge an alliance and create an account with a gold bullion dealer, you can buy and sell at any time. One only has to look at gold’s performance since the pandemic began to see how safe gold is as an investment and while you shouldn’t put all your wealth into gold, it should be in your portfolio.

• Understanding Risk & Reward – In order to be able to accurately gauge risk, you need to have an in-depth understanding of risk and reward. How much of your wealth are you prepared to risk? Spend some time learning about the mysterious world of private investment and that will stand you in good stead.

• Create A Plan – This is of paramount importance. Without a firm plan, you have no direction to your investing, and you might need the help of an investment broker to create a wealth-generation plan. This is something a 30-year-old should be doing, which outlines a path to financial security: diversify your investments and hedge against inflation and follow the plan.

• Be Tax Smart – Of course, you have to pay a percentage of your returns to the government and consulting a tax expert should point you in the right direction. If we are totally honest, no one wants to pay any more than is necessary and consulting with a taxation specialist will pay dividends.

• Investment Brokers – You can seek the help of an investment broker, giving them incentive when you make money. There are good and not so good investment brokers, and it is easy to check their performance. Some will give guarantees and for a person with no investment experience, a year or two with a broker will educate you and you should see a good return.

Many private investors never stray from real estate and gold, both of which are constant performers and during these troubled times, perhaps you should move out of stocks and shares and buy gold bullion. Diversify and learn about new markets, there are opportunities everywhere and with a sound knowledge of risk, you should generate wealth for your golden years.