Investing is the only way to grow a nest egg for the future. Retirement can certainly be accommodated with the funds that pensioners receive from their social security checks, yet a retirement that is fulfilling and exciting requires the addition of extra funding that can be brought to bear through a variety of savings and investing strategies in your younger years.
If you’re just starting out in the workforce or have just brought a new baby into this world, you may be ready to embark on this journey toward financial security. But getting started can be tricky for many who don’t know the difference between a bond and an ETF. It may all sound a bit like gibberish in the beginning, but learning to take control of your finances and retirement years is something that everyone must bring onboard as they grow older.
With these five simple tips, you can start to build a foundation for long term investing success that will stand by your side for years to come.
1. Start as early as you can.
The secret weapon for investors is time. The average investment in the stock market doubles roughly every seven years, meaning that the earlier you begin investing the more times you can expect to see your money grow organically. This means growth without the infusion of new cash on your part. Innovators in the United States have been relying on the power of compound interest for generations.
Starting early gives you the greatest chance of building a strong and stable portfolio for the future with minimal work that must be done on your part. The power of time puts your money to work for you. All you have to do is leave it there and let it mature.
2. Lock in ETFs and other stable assets for a long term base to grow upon.
Perhaps the easiest way to invest is with the help of ETFs (Exchange Traded Funds), mutual funds, and index funds. These are aggregate holdings that bundle companies trading within specific sectors, or other groupings into one traded commodity. A total market index fund, for instance, is one that is balanced to include all or most of the stocks listed on the NYSE (New York Stock Exchange). The holdings are balanced based upon an algorithm or direct fund management in order to produce the greatest possible return for shareholders.
A great way to take advantage of this type of investment is to think about a sector that you think will continue to perform well over the coming years. Combing through a list of health funds, for example, can give you some insight into healthcare indices and companies that are poised for major growth in the near and long future. Picking an industry that you think will show growth and then locking in the current price of the sector index is a surefire way to take advantage of a growing bull market that continues to indicate significant returns for investors.
3. Leverage your MBA education for great targeted investment opportunities.
Graduates of business schools and others with foundation courses, a bachelor’s degree, or other advanced undergraduate degrees and master’s degrees in a variety of disciplines know the power of research and a constant commitment to learning. This holds true for small businesses, international business leaders, and project management in all realms of industry. Research is crucial when it comes to finding lasting success in anything worth doing, but it’s particularly important for investors relying on data analytics to support their hunt for great investment opportunities across market sectors and beyond the stock market.
For those looking to bring in new skillsets to their trading profile, searching through online MBA programs in Ohio can act as unique leverage for additional research skills and insights into the trading process itself. MBA holders have developed fantastic gut instincts for business through their multiple credit hour semesters and commitment to the coursework. An MBA can act as a wonderful addition to your background as you work to grow as an investor and in entrepreneurship more generally. Advancing from an undergraduate degree to an MBA is a fantastic step toward your career goals and helps to combat the misinformation that often circulates around the marketplace.
By applying for an online MBA program with the University of Cincinnati, Cleveland State University, or a number of other universities that offer these core courses in an online MBA format, prospective students can set themselves up for success. Online MBA programs streamline the application process (and potentially allow for applications without a GMAT or GRE requirement) and can get you into the MBA core course offerings that you need much faster.
4. Pick great stocks with unique upside potential.
Stock picking can offer a mixed bag at times. Many investors select stocks and sectors that they know well as a result of lagging research or unique positioning that helps them understand a unique commodity space better than the average.
For those with long term designs, investigating cutting-edge companies can help you lock in long term growth that pays out hefty profits for years to come. One company that fits this mold is Alamos Gold (AGI).
Alamos is a Canadian mining outfit that operates mines across North America (Alamos maintains the Mulatos Mine in Mexico, and the Young-Davidson Mine and Island Gold Mine in Northern Ontario, for instance) and Alamos is breaking ground on a number of exciting new development projects coming down the pipeline. Alamos Gold is committed to environmental recovery and the business administration side of the house practices robust sustainability that eliminates cyanide and other harsh chemicals that are often found in gold mining projects.
A search for “Alamos Gold, Turkey” brings back exciting news on the world’s lowest cost mine with an expected output that rivals Alamos’ larger producing mines beyond the Republic of Turkey. With the blessing of the Turkish Government already in hand, Alamos stands poised to make huge strides forward in the mining industry. Alamos is a great company to take stock in, but there are many other subsidiaries and international business operations trading in the marketplace to investigate as well.
5. Don’t be afraid to lose some trades.
Finally, it’s important to remember that not every position you take will be a winner. You can’t be afraid to lose money in the short term. Making aggressive moves will introduce an element of risk into your portfolio, yet it’s with this risk that huge gains are made. Those who want to eliminate risk altogether can stick to the sub-one-percent yield of the bond market for assured but tiny returns on investment.
Making your way into the market is the best way to grow your nest egg with speed and confidence. Take the first steps toward financial freedom today.