When it comes to investing, it can sometimes feel overwhelming or like there’s a secret “know-how” only insiders understand. But that doesn’t have to be the case. Yes, investing can be hard to start with and there’s lots to learn. But it’s not impossible and you’re not out of your depth. Especially with MAJORITY here to help.
So, first up, what’s investing? Investing means buying an asset in the hopes that its value grows in the future. People talk about buying low and selling high. You can invest in things like stocks, bonds, EFTs, mutual funds and even real estate. But why should you?
Well, because investing can help you realize financial wealth – setting up your future and ensuring your family is taken care of. Yes, you work hard for your money, but that’s not always enough to fund the future. When it comes to supporting your kids or looking ahead to retirement, investments are usually a necessity. And, as an immigrant seeking better opportunities, investing makes sense for you.
How do you get started? First, decide how much you’re comfortable investing and set that amount aside each month. If you can, set up an automatic transfer from your bank account so you don’t risk missing a month, and then another, then another… Choose the right sort of investment account depending on your goals. And don’t be too proud to seek advice and learn from the experts.
Also, depending on your goals, the kind of investment strategy you’ll go for may vary. Are you saving for something in particular, like a home, or longer term scenarios like your eventual retirement?
But don’t forget that investing is a risk. Be clear about how much you can afford to invest responsibly and avoid investments that are so risky you end up losing all your money straight away.
Good to know!
The average annual rate of return for the American stock market is approximately 7-10%. This means that investing broadly in the US stock market could result in your money growing on average 7-10% per year.
Some years it will be higher and some it will be lower. Very few investments perform better than average, which is why some people who think they can beat the stock market by making risky investments ultimately end up losing out.
MAJORITY’s view is that you should take a smart, long-term, responsible approach by trying to follow the 7-10% average growth of the stock market rather than taking further risks or paying a hefty fee to firms that promise higher rates of return. Take your time, read up on all you can and remember that investments don’t grow overnight.
But most importantly, remember your future is always worth investing in!