How to Start Investing – Four Steps You Should Take

Investing your savings is one of the best ways to grow your wealth and create financial stability

Investing your savings is one of the best ways to grow your wealth and create financial stability, but it can be overwhelming to know how to start investing. If you are looking to increase your wealth, it’s probably time for you to begin your investment journey. While it can be daunting to dive into investing, we believe you can achieve substantial financial growth and stability through investments. Making the decision to start investing is a great first step to take, but what should you do next? It’s natural to wonder, “Well, how do I start investing?” If you’re ready to explore investment options, there are a few steps you can take to get your feet wet.

  1. Determine your goals. In order to make the best investment decisions, it is essential to have an idea of where you are aiming. If your main goal is to retire early at 55, you will need to invest money much differently than someone whose primary goal is to save enough for their children to go to college. Financial decisions are usually deeply personal, and the goals you hope to achieve through investing will have a huge impact on which investments are likely to work best for you. Establishing clear objectives is crucial if you are wondering how to start investing.
  2. Determine your investment time horizon. Depending on the timeline attached to your goals when you start investing, your strategy may need to be more aggressive. If your goals require a large sum of money in ten years, you may need to start with more money and be willing to accept more risk than you would if you had those same goals thirty years down the road. You may find that your time horizon can be more flexible which can also have an impact on which investments are best for you. In some cases, it may even be beneficial to set smaller milestones for you to keep an eye on so you can adjust your overall strategy as needed.
  3. Determine your risk tolerance. When you start investing your assets, risk is always a factor. Moving away from savings accounts and short term bonds may increase your risk, but you will also find a greater potential for growth. While a financial professional can certainly help guide you through the process, the amount of risk you are willing to accept is personal decision that only you can determine. You may find you need to adjust your goals and timeline depending on how comfortable you are with taking risks in your investments. James River Advisors provides free access to a risk assessment tool, which you may use with no obligation.
  4. Consult with an advisor. A financial advisor can provide valuable insight on all three of these decisions. Financial advisors who act as a fiduciary will prioritize your financial well-being and guide you through the many decisions involved in reaching your goals. At James River Advisors, we work with a wide range of clients. Some of our clients have worked with financial advisors in the past, and others have not. Regardless of your prior experience, if you are wondering how to start investing in your future, we recommend scheduling a free financial consultation to see how we can partner with you to help you meet your goals.

Investing has many benefits and is a huge contributing factor to financial stability. These four steps can help you feel less overwhelmed if you aren’t sure how to start investing. At James River Advisors, we are here to help you define and achieve your financial goals. Whether you are on the verge of achieving financial independence, or you have suddenly come into a large sum of money, we are here to help you get started investing.

James River Advisors is a registered investment adviser in the State of Virginia.  The content on our site is for informational purposes only and should not be considered an offer or recommendation to buy or sell any specific investment or investment strategy.