Getting Started: A Foundation For New Investors, Part 1

Most Americans are hard-working, maintain a disciplined budget, live within their means, and are good savers. But good savers are not always good investors, which is when we try to help.

Saving is one skill; smart investing is another skill. Too often, good savers are hesitant to take the next step towards investing those hard-earned savings. Ensuring a comfortable retirement requires smart investing over long periods, usually decades. This post will be the first in a series aimed at those people looking to get started on a lifetime of smart investing.

Why do so many Americans choose not to invest any of their savings? This is the essential question we’ll have to answer before going any further. If we were to ask a non-investor why they choose not to invest, here are some likely responses:

“I don’t know anything about the stock market.”

“I don’t even have enough money to invest.”

“I get worried about losing it all if the market collapses.”

“I do want to invest, but I don’t know where to start.”

“I don’t want any additional tax hassles.”

These are all legitimate concerns. Nobody wants to risk losing money. Nobody wants more taxes. Nobody wants to put money into a stock market they know little about. But here’s an additional response we also hear a lot: “I get very anxious about investing my savings---but I know I need to invest anyway.” Most new investors feel this way. This ongoing series will lay the foundation for those new investors looking to start a lifetime of investing. Next month, we will address each of these common concerns for new investors.

Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice.

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