Investing doesn’t have to be difficult. You don’t even need to understand the terms people on Wall Street use. You just need a valued financial advisor who can guide you to manage wealth sustainably and reliably. Many people start investing by setting up a retirement account. You can use an employer-sponsored plan or an IRA to contribute money towards your financial future.

Retirement accounts aren’t the only investment vehicles, although they offer some useful tax benefits. If you’re in a high tax bracket, maxing out your retirement contributions can be a good way to minimize your tax payments while saving for retirement. You can also set up a private investment account that seeks to growth wealth, especially after you’ve maxed out your retirement contributions.

With inflation rising and savings rates at an all-time low, you’re losing money if you don’t invest it. Money in your savings account today will be worth less a year from now because of inflation. If you want to build a nest egg for your retirement, a good way for growth potential of real wealth is through investments.

Is Investing Risky?

There is a risk involved with investing your money, but there’s also a risk in keeping your money in a savings account. High inflation rates mean your money loses value in your savings account. You can reduce your investment risk by working with a portfolio manager to keep your portfolio within your risk tolerance limit and well diversified. 

How Can I Minimize Risk?

There are many ways to manage investment risk. Certain investments, like bonds, offer lower returns but hardly any risk. By adding those to your investment portfolio, you can balance your investment risk. 

Diversification helps reduce risk across the board. It’s important not to put a considerable percentage of your assets in one type of company or industry. While there’s a chance those assets can take off, they might also lose value, resulting in a huge financial loss. Finally, you have to be patient. The stock market has ups and downs, but historically, it trends upward. 

What Should I Invest In?

The hot pick for stocks from today will be outdated tomorrow. A smart, future-oriented investor doesn’t look for specific stocks to buy. Instead, we use stringent criteria to pick investments that perform well. Without knowing your unique situation, goals, and risk tolerance, we can’t recommend specific investments. But we’re happy to talk to you in person during an appointment and offer advice tailored to your situation.

 Your money in your savings account is losing value as you read this. We recommend that you don’t wait to invest in your financial future. You can strive to build real wealth one contribution at a time. Call us today and schedule an appointment.