Fidelity's survey revealed that only 47% of women feel confident in investing $25,000. Don't be part of that statistic. Here’s a straightforward path to begin your investing journey.
Have you received a financial boost recently? Whether it’s pandemic savings or an unexpected windfall, knowing how to invest your $25,000 is essential.
Investing: Let’s Get Real is brought to you by Fidelity Investments, who understands what women need for successful investing. They’ve created a special event with tailored resources to empower women in reaching their financial goals. Click here for more information.
DEFINE YOUR OBJECTIVES
Before jumping into investments, clarify what you aim to achieve and your timeline. “Are you saving for a home? Planning for your child’s education? What are your goals and when do you want to achieve them?” advises Ryan Viktorin, a financial consultant. Your objectives and timeline will shape your investment choices.
If your goal is short-term, like a house down payment in a few years, opt for lower-risk options. Conversely, if you're investing for retirement in twenty-five years, taking on more risk is typically acceptable. “Once you establish your goals and timeline, you can explore the how,” Viktorin states.
CHOOSE YOUR INVESTMENT APPROACH
Are you a hands-on investor, or do you prefer a more passive approach? Determine your investment style to start off on the right foot.
If you seek professional guidance, there's encouraging news. You don’t need a fortune to access financial advice. Many advisors offer free initial consultations and will tailor a plan to fit your goals and budget. “You don’t have to tackle this journey alone, regardless of your investment size,” Viktorin explains. “The complexity of your investments will inform the type of support you require.”
For those who like to automate their investments, robo-advisors are a popular choice. These online platforms ask about your goals, risk tolerance, and investment timeline, then manage your portfolio for you. “With Fidelity’s platform, you provide your details and you're set,” Viktorin says. Hybrid robo-advisors blend digital investing with human oversight.
Going the DIY route can be risky for beginners. It's crucial to educate yourself about market intricacies before making decisions. From stocks to bonds, each investment varies in risk and cost. Avoid the trap of poor choices that could lead to losses or high fees. “Does the investment align with your financial planning needs? Always relate it back to your goals,” Viktorin advises.
PREPARE FOR MARKET FLUCTUATIONS
Investing can stir strong emotions. One day your stocks soar, the next they plunge, which may drive inexperienced investors to panic sell. A sound strategy involves staying calm amidst market volatility. Craft a solid investment plan rooted in your goals and risk appetite. When downturns occur, having a plan helps resist impulsive selling. Remember those who weathered the Great Recession and ultimately saw their investments rebound. “When market conditions are tough, don’t hesitate to reach out for support,” says Viktorin. “Sticking with your strategy is effective but can be mentally taxing.”
SEEK GUIDANCE
No one has all the answers when it comes to investing. As a newcomer, asking questions and seeking help is the best way to learn. Even seasoned DIY investors benefit from occasional guidance. “Regardless of whether it’s your first investment, don’t shy away from asking for help,” urges Viktorin. “Shift your mindset from ‘I can’t do this’ to ‘I can do this!’”
Money discussions can feel daunting. Fidelity offers insights on the top five questions to ask yourself and others to improve your saving and investing strategies. You’re capable, and there’s support available. Click here for actionable resources to boost your investing confidence.
