You've probably heard many stories of people who struck it rich putting money in the stock market. After reading a few success stories, it's hard to not consider throwing your hat in the ring, as it's a great feeling when you can watch your money make more money.
So, what is it about stocks that get people the returns they want? On the silver screens, investors are typically painted as denizens of Wall Street who strut around in tailored suits and crunch numbers all day. However, teachers, firefighters and electricians also want a cut of the action. You don't have to be a corporate bigwig to make a few investments. One of our investment experts can help you get started and create a sound strategy.
Whether you're looking to invest your way to millions or pad your retirement savings, here are some signs you're prepared to put money in the stock market:
You have the time
Of course, we can help you get started on your investment strategy, but you'll still need to put in time to determine where you want your money to go, especially if you're considering individual stocks. Research is required if you're going to determine whether a stock will increase in value or plummet. Additionally, you have to watch stock prices and the overall market to determine the best times to buy and sell.
You have the bravado
Stock market investing isn't for everyone. There's the potential for large losses as well as gains, and a stock that's up one day could fall the next. Diversifying your assets is typically cited as the best way to mitigate risk, but when losses do occur, you'll still need to make logical decisions about whether you're going to sell or hold rather than making knee-jerk reactions.
You are a patient investor
In some cases, individuals get a huge payout from the stock market in a short time, but most investors realize their riches over a longer period. Albeit at a slow pace, stocks have limitless potential to increase in price. If you were to purchase stock in a tech startup and hold the stock for 10 years as the company grows into an international franchise, you could pocket a sizeable return. This strategy can be beneficial if you purchase the stock and wait to cash out until retirement.
You have the money
If the balance in your checking account is low and you're dealing with a sizeable amount of credit card debt, you may want to hold off on investing in the stock market. The money that you put into the market should be separate from your funds for expenses and emergency savings. Separating your finances allows you to avoid financial strain if you suffer a large loss. Before you get started, ensure your other expenses are covered and try to pay off any debts that you have.
For more information on effective wealth management strategies, contact Landmark Bank.
Investment products and services are not FDIC insured, not insured by any federal government agency, not a deposit or bank obligation, not financial institution guaranteed, subject to investment risk, including potential principal loss.
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