Top 5 Investing Tips that Turn You into a Successful Investor

Since the present market condition has taken the edge off, it is a wise idea to spend your time learning how to invest and become a successful investor. You do not have to back a step if you are a new investor or you do not have a huge sum of money for investment. Start with small, minimize your losses, and reduce your risks during your learning stage. Here are the five best tips that can help to transform you as a successful investor.

Best 5 investing tips

#1: Set your goals perfectly

Investment can be categorized across three types of age group people:

• You might be recently married or in your 30s and want to begin saving for further life; or

• You can be on your 50s and realize that you have not planned about what is after retirement; or

• You have daughters or sons who will step into college in some time and get into deep thinking on how to earn money for it.

You need unique approaches in all the three cases as your situations also differ.

If you are a parent of a college teen, you require an investment that has a validity period and easy withdrawal with tax-free benefits. This type of plan exists even now. If you fall under the 50-age category, you can double your contribution amount towards a pension/retirement account. Those in the 30s have many options to invest in like mutual funds, bonds, stocks, REITs, peer-peer lending, etc.

You should have clear goals set for investment and risk tolerance as well. Only you can make a call on where and when to invest as per your cash flow.

#2: Opt an investment that gives you mandate returns

No investing company assures you of guaranteed returns. Only insurances can make you count on that. Rather than looking for the term guarantee, you can see if the following strategies help to predict and improve your financial future.

Clear your high-value debts Investment is a right thought but at the same time, if you have any high credit card or loan debts, first clear them off. By doing so it helps you save some money on the interest you pay. You can further plan for various investments with the money you saved through clearing your debts.

Think of investing in a retirement plan Irrespective of age, you should strongly think of investing in a retirement plan. Some portion of your salary or business profit can go into the plan so that you need not develop stress when you grow older. It can be highly considered as a tip because it exempts you from tax.

Invest in a 529 plan This plan is for college teens that are offered by the government, state agencies, or by the institution itself. This is again a tax-free plan that you can rely upon.

#3: Cut down on investment costs

The administration fee of investing in the vehicles is something you must investigate. Some may charge a flat fee, and some may charge you on a percentage basis. Observe and understand how your investment is turning out as a profit and reconsider your advisor’s fee structure upon gaining profits.

#4: Invest using a Robo-advisor

Multiple online platforms are available for choosing the right investment service. Usually, you get many facilities by enrolling with these Robo advisors. You can experience a streamlined process with low minimum balances and a user-friendly interface throughout. But again, the fee may vary according to your requirement and several other criteria. They may ask you a few questions at the beginning to understand and work out a convincing investment plan for you. So, plan and convey your requirements accordingly.

#5: Think of several investment alternatives

Investment generally requires diversification as you cannot predict the market changes. Hence having unified options can help you gain better profits. Here are the alternatives if you wish to investigate, which include:

• Investing in gold and silver

• Oil and natural gas

• best shares to buy

• Cryptocurrencies

• Investing in start-ups and IPOs

You can even consider peer-peer lending as the best investment option. Generally, the less your minimums are, the less are your fees. Choose a business or a project in business and validate its feasibility. You can also invest as per the performance of that business.

The main factors that influence your investing ideas are how you get started and how far you are tolerable towards your risks. You have plenty of investment opportunities but choosing the right one at the right time is quite challenging. These tips can be a stepping stone to enter investments, but you are the sole decision-maker of your investment need.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes