New here? Just starting as an investor?
If you’re a new investor and visiting Investor Junkie for the first time, then this page is what you need to get started.
When I first started investing, the Internet was still in its infancy, and listening to radio programs was one way to get educated about investing, so the resources available to increase my investment knowledge were very limited.
I didn’t have wealthy friends or family to guide me, so my only option was to read as many personal finance books and magazines I could get my hands on, and experiment with my own finances.
After trial and error from my own experience, I made it one of my goals to help educate others about investing and personal finance, by creating this website.
I also don’t pretend to have all of the answers.
I’m not some financial “guru”, but someone just like you. Something that’s outside of my personal expertise I’ve sought out in finding the best experts in that area and consulted with them. That’s why you also find multiple authors and guest writers on this site.
Investing and building wealth for the future is such a critical skill to have — one that affects every part of our daily life.
Click the titles below to get more in depth information and access to related articles on the site.
Before you start thinking about investing, you’ve got to get rid of consumer debt. It’s the first step on your road to building wealth and creating financial stability for the future. Why? Because saving for the future is really simple – spend less than you earn and invest the difference.
If you’re an employee, head to your HR department now and open up a retirement account with your company. Depending upon the company, it’s either called a 401(k) or 403(k). Not all companies match what you invest, but if they do, it’s almost like free money.
If you can afford it, take the maximum amount out of your paycheck and deposit into your retirement account. If you are recent graduate, you’ll want to do this right away — when you land your first job. With compounding interest, you will be amazed how quickly your money can grow and grow.
It’s critical you create a proper asset allocation for your investments. There’s nothing that will affect your returns more than asset allocation. Various asset classes do not move in parallel with each other. For example: typically when stock prices rise, bond prices fall.
With investing, taxes matter, a lot! You are best to be tax efficient with your investments. This means some investments should be placed in tax deferred accounts, while others can remain in taxable accounts. Know which types of investments should be placed where.
Investment expenses are an often overlooked. If not careful fees can dramatically decrease your performance over time. Research has shown over a ten year period, 80% of actively managed funds (which have higher fees to boot) perform worse than index based funds. Ironically the performance difference typically is the same as the management fees — meaning fees are a drag on performance.
Owning a business gives you so many life experiences. You’ll deal with issues you normally would not deal with when working for someone else. From how to incorporate, to balancing the books, to developing a business plan and managing cash flow — there’s always something new to learn. And if you should lose your job, you have something to fall back upon.
Whether you own a business or have a large investment portfolio, it’s important to protect your assets. You don’t want to make a mistake, get slapped with a lawsuit and lose a ton of money or even be forced to close your business. Taking the necessary steps to protect your assets will save you from this headache.
Once you’ve paid off your debts, created financial goals and started investing for the future, it’s time to take the next step — building wealth. Want to know the secret to building wealth? It’s not as complicated as you might think.