approximate total return would then be 50.11% (Capital gains: 48.5% + Dividends: ($500/$31,000) x 100% = 1.61% ). How Can I Start Investing? You can choose the do-it-yourself route, selecting investments based on your investing style, or enlist the help of an investment professional, such as an advisor or broker. Before investing, it's important to determine what your preferences and risk tolerance are. If risk-averse, choosing stocks and options, may not be the best choice. Develop a strategy, outlining how much to invest, how often to invest, and what to invest in based on goals and preferences. Before allocating your resources, research the target investment to make sure it aligns with your strategy and has the potential to deliver desired results. Remember, you don't need a lot of money to begin, and you can modify as your needs change. What Are Some Types of Investments? There are many types of investments to choose from. Perhaps the most common are stocks, bonds, real estate, and ETFs/ mutual funds. Other types of investments to consider are real estate, CDs, annuities, cryptocurrencies, commodities, collectibles, and precious metals. How Can Investing Grow My Money? Investing is not reserved for the wealthy. You can invest nominal amounts. For example, you can purchase low-priced stocks, deposit small amounts into an interest-bearing savings account, or save until you accumulate a target amount to invest. If your employer offers a retirement plan, such as a 401(k), allocate small amounts from your pay until you can increase your investment. If your employer participates in matching, you may realize that your investment has doubled. You can begin investing in stocks, bonds, and mutual funds or even open an IRA. Starting with $1,000 is nothing to sneeze at.
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