For many people, just hearing the term “investing” can be overwhelming and complex. But, when done correctly, investing is a great way to set yourself up for financial success in the future. With a few investing tips and tricks in mind, savvy financial decisions can become easier and start to compound in their positive impact, without extra work or hassle for you. For first-time female investors looking to dip your toes in the investing pool, here’s what you need to know to position yourself for success.
Dress for success.
You may have to meet with multiple different financial advisors or investment managers when getting started with building your investment portfolio. It is important to always dress professionally for these meetings, so it’s a good idea to invest in your wardrobe, even before you start looking into investments. Choose some pencil skirts, petite dresses, button-down shirts, blazers and pantsuits for an ultimate professional impact. When you dress for confidence, you’ll feel more confident in your professional meetings as well.
More investing tips: Let your goals guide your choices.
It’s not a good idea to just start investing with the vague goal of growing your money. You need to have a specific goal for your money, which will then help you pick the right investment property. To get started, ask yourself these three questions:
- What is my overarching goal for my money? For example, do I want to save for retirement, save to buy a house or save to go to school within the next few years?
- When do I need my money? Do I have a deadline in mind?
- How much risk am I willing to take?
When you have the answer to these questions, its time to look at the different investing options. There are many options available, but before you settle on one, consider the short-term and long-term goals of each.
That’s key when it comes to investing tips. As a rule of thumb, stocks are a good option for those looking to invest for the long haul, whereas cash and gold are great for if you’d like the money within the next few years.
Understand the ins and outs of brokerage firms.
Each brokerage firm offers different fees and services. Look at the fine print before you choose to invest, and consider which is more important to you: the terms of service or any fees, such as soft dollars. Soft dollars are the amount money managers pay to the brokerage firms out of their client’s accounts to cover the cost of research that the firm provides.
Also, soft dollars will come out of your account to cover the transaction fees that come with trades, which allows fund managers to gain income at your expense. While soft dollar transactions are legal, it is important you know about them before you sign up with a brokerage firm. That way, you understand where your money is going at all times.
Always be willing to change is one of the top investing tips
The great thing about investing is that the market is alway in flux. With this point in mind, you need to be willing to change up your investment portfolio when times call for it.
The best way to do this without making huge changes to your investments is to diversify your accounts, so you don’t put all your eggs in one basket in case the stock of a certain company plumments. Continue to rebalance along the way, and stay on top of your investments to make them work for you.
First-time female investors, don’t forget about taxes.
Investing is a form of income, meaning your investment accounts will have some sort of impact on your taxes. Make sure to work with an accountant during tax season so that you completely understand any penalties you may face or if you need to do some extra planning.
With these investing tips in mind, first-time female investors have a tool to use wisely to secure your financial future, including a comfortable retirement. It doesn’t have to be overwhelming, and it can even be fun!