Checklist for first-time investors

You might be hearing a lot of people talk about investments and how this can grow your money. That may be enough for you to be interested in starting an investment. But before you jump into that, here are some helpful tips for you:

1. It’s good to have a savings account but it is not the best way to grow your money

Putting your money in the bank, say in a savings or checking account is not enough if you want to maximize your money. There are many options to place your money in and earn higher from such as investment products.

2. Start with low-risk investments

As someone starting out, wanting to test the waters, where do you begin? Go for investments with low risk with good return such as bonds and preferred shares. Don’t let the term scare you. They are bonds from corporations that are looking for funding and raising money. These are regulated by government sectors like the SEC and usually underwritten by banks.

3. Understand guiding metrics

Another thing you need to know is that there are metrics in place that will help guide you in deciding which company to invest in. It is a lot safer to invest in the companies with higher ratings from Phil Ratings, Crisp AA, or Crisp AAA. These ratings would mean safer investments. You can choose, and check on BVAL or Bloomberg Valuation to guide your benchmarking.

4. Read up on the news

Another pro tip is to be informed. Staying updated on news and current events can guide you with economical insights that may affect the market. Additionally, fresh issuance of public investment instruments, as a rule, are announced on media like newspapers and articles online.

5. Gather your options

If you’re beginning to invest, the easiest way to do it is to consult the wealth manager of your depositing bank. These are investment managers that can inform you of investment products available to you at the moment. In addition, they can guide you in the processes of setting up your investment.