The cliche “new year, new you” belies very real possibility. The start of a new year is a great time to try new things — or get back on track. Many people will use this time to try to start eating healthier, exercising, meditating or a whole host of other healthy activities. And that’s great! But why not work toward securing your future by adding investing to that list?
To help you out, we connected with some local investing professionals to get their insight and put together some advice that might be useful for you — whether you’re new to investing or a seasoned pro.
If you’re new to investing the first rule is: don’t be afraid! Investing isn’t as inaccessible as it might seem, and there are plenty of ways you can get started.
“Do your homework,” said John Morgan, a wealth management specialist at Raymond James. And don’t be afraid to trust your gut. “If it sounds too good to be true, it probably is.”
Along the same lines, watch out for “trendy” or “viral” advice from social media. “Be sure to take investment advice from reputable sources only,” said Kris Khalil, managing director of BioFund. “That means NO to almost all IG (Instagram) and TikTok ‘investment influencers.’”
For many, the “safer” the investment option, the better. This might be especially true if you don’t have much investment experience, but even investing veterans may want to stick with less risky options. If that’s the case for you, the experts we spoke to recommended CDs, I bonds, T-Bonds (treasury bonds) and municipal bonds.
“It depends on what you’re starting out with to invest, your risk appetite, and your time horizon for returns,” Khalil said. Take some time to look at what you’re working with and what you’re willing to risk before you get started. And try investing in multiple ways at once rather than putting all your investment money into one option. “Don’t put all of your proverbial eggs in one basket,” he said. “Many folks who put their entire net worth into crypto are in a bad spot right now during this downturn.”
Above all, if you’re serious about investing, whether you’ve got some knowledge and are eager to get more into it, or your first taste has whetted your appetite and you want to take your investing to the next level, the next step is to talk to a professional. But even then, it’s important that you take time to vet them.
“Check out the credentials and credibility of the investment advisory firm,” said Morgan. “Use brokercheck.finra.org to look for credentials and licenses, as well as important regulatory disclosures.”
JOHN MORGAN
Wealth Management Specialist
Raymond James
As has happened periodically throughout history, 2022 has been a challenging time in the financial markets. Take time to match your investments to your goals. Work with your advisor to design a suitable plan and then trust that professional to work with you for the long term.
KRIS KHALIL
Managing Director
BioFund
Take the time to educate yourself and make a plan. Don’t fully depend on anyone else since it’s your hard-earned capital. Diversify as much as possible across asset classes and sectors. One way to do this is by purchasing ETFs [exchange traded funds]. Avoid putting any large concentration of your portfolio into one investment or one sector.
