To respond to requests for information about what people should invest in, The Motley Fool doesn’t offer a list of specific companies but instead outlines some rules of thumb that novice investors could follow.
Having an investment strategy is important. Rather than chasing what you think may be a hot investment, find a way to make the most of your resources and invest in a way that will make you feel comfortable and yield results. This is where a Fee-Only financial planner can help. If you aren’t comfortable with your investments, you can bring unnecessary on yourself. You may also get nervous and start moving money around when you need to give your investments time to grow.
The Motley Fool suggests that you:
Consider your age:
The younger you are, the more time your money has to grow so younger investors can afford to take more risks. Older investors need to err on the side of being more conservative with their investments.
Consider how much you can invest:
If you go after certain investments because you are sure they will have great results but overspend, you can put your present life at risk for uncertain gain in the future. You don’t have to risk your ability to meet expenses now. In fact, you should have an emergency fund ready before you invest to ensure that your current needs are met.
Consider your reason for investing:
We all need money and yet growing your investment portfolio isn’t usually just an exercise in getting more money to just store in bank accounts. Are you investing for retirement, education, to start a business, or to buy property? The reason you need the money and the projected time frame for when you will need it can help inform your decisions about where to invest your money.