3. Keep Things Simple
Mike Piper, certified public accountant and ObliviousInvestor.com, is known for his smart and simple investing approaches.
“To me, the best way to invest is to keep things simple,” Piper said. “Automate your contributions every month — whether to an IRA, a retirement plan at work or both. Find a low-cost, all-in-one fund with an allocation that’s appropriate for your risk tolerance. That way, both monthly saving and portfolio management are hands-off, thereby, saving you time and minimizing the likelihood of mistakes,” said Piper.
4. Learn Where to Invest Your Money
George Papadopoulos — a certified public accountant, certified financial planner and fee-only wealth manager in Michigan — offered this advice on beginner investing: “For beginner investors who are most likely investing in just one account — usually the 401k plan at work — and not willing to spend time managing and rebalancing, they should just pick a target-date fund and ‘set it and forget it.’ Further, new investors should focus on expanding their marketable skills and aim to contribute more — ideally, to the point to capture the full employer match — to their workplace retirement account.”
5. Invest Using Dollar-Cost Averaging
Dollar-cost averaging is the practice of regularly transferring a certain amount of money into an investment account to buy stocks or funds. This disciplined approach forces you to buy more shares at lower prices and fewer shares when prices are higher. You can practice this investing strategy by simply investing in a 401k or 403b on a regular basis, or by having a set amount transferred from your paycheck into an investment account.