If you’re just starting out in your career and thinking about investing for your future, what should you know?
Of course, you may have to address priorities such as paying off student loans.
Still, it’s never too soon to start investing.
Consider these five tips:
First, take advantage of your opportunities.
If you have a 401(k) plan at work, contribute as much as you can afford.
Second, think long-term.
Don’t make mistakes by trying to time the market for short-term gains.
Third, know your risk tolerance.
This knowledge will help you make better investment choices.
Fourth, diversify your investments.
Diversification can’t prevent all losses, but it can help reduce the effects of market volatility on your portfolio.
And fifth, try to avoid dipping into long-term investments to pay for unexpected costs, such as a major home repair.
It helps to build an emergency fund containing several months’ worth of living expenses.
By putting these moves to work, you can help yourself make progress on an investment journey that could last a lifetime.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson and Hawes Dickerson. Members SIPC.
