How To Start Investing

How To Start Investing: A Simple Guide

Weeks ago, we posted an infographic that provided an easy introduction to investing, and why it should be a priority.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

Q2 hedge fund letters, conference, scoops etc

But how does one actually get into the market?

Today’s infographic is a practical guide that explains and compares four different ways to get started:

How To Start Investing

Investing can seem confusing for a newcomer, and there are many conflicting messages out there that can add to this perceived complexity.

However, when you boil it all down, there are only four real ways to get into the market.

The Investment Continuum

Investing can be a full-time job, or it can be something that you set and forget – it all depends on how you do it.

Picking stocks:

Manually building your own portfolio of stocks and other securities. This provides the ultimate level of control – but it’s also extremely challenging to do successfully. Managing your own money through market fluctuations can be a humbling experience.

Picking managers:

The next step up the continuum is to pick the professionals that manage investment portfolios called mutual funds. Buying a mutual fund ensures your money is professional managed, but you still have to make sure you have the appropriate asset allocations, and watch fees closely.

Picking index funds:

Another option is to invest in the stock market as a whole, which has shown exponential returns over time. An index fund is one way to approach this – it buys all the stocks in the market, and tries to replicate the performance of the index as a whole. The downsides: lack of control, and less downside protection.

Hiring a financial planner:

Finally, hiring a financial planner allows you to build a personalized relationship over time. They will manage the investments on your behalf and answer any questions, but will charge you fees to do so. It’s also important to remember that if you go this route, that not all financial advisors are created equal.

Which of these four options is best – there is no correct answer that applies to everyone. It all depends on your experience, mindset, tendencies, and personality.

Article by Visual Capitalist

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted & limited time offer for being a sophisticated and loyal reader.

ValueWalkPremium is a website and newsletter on the latest industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 2/29/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0