Three stock market tips for beginners. Listen up.
Stock Market Tips for Beginners: Pay Off High-Interest Debt Before Investing
Number one, pay off your high-interest debt before you start investing.
The last scenario you want to be in is in one where you have high-interest debt, and you’re investing, and let’s say the stock market sells off like it has been, and you’re down on your investments.
The last spot you want to be in is where you have to sell your investments at a loss to pay off your debts. Pay off your debts first.
Stock Market Tips for Beginners: Open Up a Roth IRA
Tip number two, open up a Roth IRA. A Roth IRA allows you to put post-tax money into an account, and this account grows tax-free, meaning all the gains, all the dividends grow tax-free into retirement. I mean, does it get any better than that?
Stock Market Tips for Beginners: Stick to the Basics
And tip number three, stick to the basics. Don’t look for the next penny stock, the next breakout stock.
Just buy an index fund, something like an S&P 500 Index Fund, and you can do this through ETFs.
I personally own VOO from Vanguard.
Another one you can look at is SPY.
BONUS Stock Market Tip: Timing matters!
It might be difficult to invest a lot money at a young age. If you can’t do 1,000 a month, that’s completely okay. Do $100, do $200.
Don’t just push investing off because you will regret it in the long term.
Let me know your thoughts.
Do your research. As always, I’ll see you later.