{"id":7862,"date":"2023-02-20T12:01:40","date_gmt":"2023-02-20T01:31:40","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/6-tips-for-the-young-investor-in-todays-markets\/"},"modified":"2023-02-20T12:01:40","modified_gmt":"2023-02-20T01:31:40","slug":"6-tips-for-the-young-investor-in-todays-markets","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/6-tips-for-the-young-investor-in-todays-markets\/","title":{"rendered":"6 tips for the young investor in today\u2019s markets"},"content":{"rendered":"
How much money you\u2019re able to invest each year is one of the biggest factors in achieving your financial goals.\u00a0<\/em>And the longer you\u2019re invested, the more time your money has to compound and grow.<\/strong><\/p>\n Inflation is up and markets are down. What does this mean for you?<\/p>\n <\/p>\n Entering the world of investing can be intimidating, even during the best of times. After all, it\u2019s normal to have some hesitation when you\u2019re doing something new. But what about when the markets are choppy?<\/p>\n The truth is, ups and downs in the markets are normal parts of the investment landscape. But starting out during a rocky market is not a bad place to be.<\/p>\n When you\u2019re still in the accumulation phase of your financial life, you\u2019re trying to grow your portfolio\u2014by holding more growth-oriented investments, for example. At this stage, you\u2019re more likely to have time to take on more risk because you won\u2019t be accessing your money for many years. In short, time is on your side.<\/p>\n A volatile market can be seen as a formidable hurdle. But down markets can be favourable for investors. As the mantra goes, \u201cbuy low, sell high.\u201d<\/p>\n If you can start saving for your future when the share market is down, you give yourself a better chance of meeting your goals. That\u2019s because you\u2019ll be able to buy more shares at a lower price, which can give you more value over the long term.<\/p>\n The longer you wait to start investing, the more money you\u2019ll likely need to invest over time to accumulate the same amount. You could also end up purchasing shares when they\u2019re more expensive and miss out on market appreciation.<\/p>\n This also could be a great time to dollar-cost average. \u201cDollar-cost averaging\u201d is the practice of purchasing a fixed dollar amount of a particular investment on a regular basis, regardless of the share price. You\u2019ll automatically buy more shares when prices are low and fewer shares when prices are high. This helps you avoid the risk of investing a lump-sum amount when prices are at their peak. With each contribution, your portfolio has the potential to grow\u2014increasing your nest egg.<\/p>\n 1.\u00a0Start now, start small<\/strong><\/p>\n Create a budget for yourself and commit to investing a comfortable amount on a regular basis. For example, you could:<\/p>\n Start contributing a little each month into an account dedicated to investing suitable for your situation.<\/p>\n<\/li>\n Set up a monthly investment into a high-yield account where you may be able to earn more interest than a standard savings account.<\/p>\n<\/li>\n<\/ul>\n 2.\u00a0Maintain voluntary contributions to super<\/strong><\/p>\n If your company provides a matching contribution, contribute up to the full match. The company\u2019s match is essentially \u201cfree money\u201d toward your future that can help you reach your goals sooner\u2014so why miss out?<\/p>\n 3.\u00a0Start an emergency fund<\/strong><\/p>\n An emergency fund should cover about 3 to 6 months of your living expenses. Keep in mind:<\/p>\n Your emergency fund should be kept in a liquid and stable place like a high-yield savings account.<\/p>\n 1.\u00a0Don\u2019t spend your money on trendy investments.<\/strong><\/p>\n While it may be alluring (who wouldn\u2019t want to get rich quick?), jumping on the bandwagon for an individual stock that\u2019s momentarily in the spotlight is high-risk.<\/p>\n 2.\u00a0Don\u2019t stop contributing to your investment when markets are volatile.<\/strong><\/p>\n The sooner money is invested, the more time it has to grow. Stopping contributions altogether will slow your progress. You work hard for your money; let it work hard for you.<\/p>\n 3.\u00a0Don\u2019t focus on the value of your portfolio on a single day.<\/strong><\/p>\n On any given day, the market can go up or down. Instead of stressing over your balance, ask yourself, \u201cWhen will I need this money?\u201d If the money is for a longer-term goal\u2014say 10, 20, or even 30 years\u2014the value of your portfolio today doesn\u2019t matter.<\/p>\n These are general tips and every investor should consider their own personal situation when making financial decisions.<\/p>\n If you\u2019d like to start your investment journey, call us on [phone].<\/p>\n Source: Vanguard<\/a><\/span><\/p>\n Reproduced with permission of Vanguard Investments Australia Ltd<\/p>\n Vanguard Investments Australia Ltd (ABN 72 072 881 086 \/ AFS Licence 227263) is the product issuer. We have not taken yours and your clients\u2019 circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our\u00a0PDS\u00a0or\u00a0Prospectus\u00a0online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.<\/p>\n \u00a9 2022 Vanguard Investments Australia Ltd. All rights reserved.<\/p>\n Important: The post 6 tips for the young investor in today\u2019s markets<\/a> appeared first on MLC Contemporary<\/a>.<\/p>\n<\/div>\nTips for getting started on your investment journey<\/h3>\n
The Dos<\/h3>\n
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The Don\u2019ts<\/h3>\n
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