Investing in the stock market is a great way to build wealth, but there are some things you should know before getting started.
1. Investing can be very risky.
People are often unaware of the risks that come with buying shares in the stock market. We suggest investing what you can afford to lose.
2. Wealth is not created overnight.
Investing is a long-term sport. Global news shapes how "the market" performs each day.
3. You are buying stake in a company.
It's important to know what you are buying because you will own equity in that company.
4. How should you get started investing?
You should determine how tailored of an approach you need based on your assets. There are many online brokers available, but as you accumulate more wealth (and taxes) it may benefit you to speak with a financial professional about creating a plan that addresses your whole financial picture.
5. How often should you rebalance your investment portfolio?
Rebalance your portfolio at least annually. If we are your financial advisors, we rebalance your portfolio every quarter.
If you have questions about investing in the stock market, give our office a call!