Tips for Those Thinking About Investing for the New Year

By: Althea Paul
By: Althea Paul

Experts say the first thing to do is figure out what kind of a risk taker you are. There are questionnaires you can fill out to help you assess how deep you want to plunge into investing. Some are available on-line.

Next, for beginners, it's best to hire a professional such as a market manager or financial advisor to help you out.

"There are just so many risks involved in investing, and it's so much easier to lose money in the market place than it is to make money," said Henry Kaelber of Hoffman, White, & Kaelber.

Get comfortable with your advisor and always ask questions and learn from them, so together you can determine your strategy. If you consider yourself to be low risk, you may want to start off investing in mutual funds.

"I would look for a mutual fund, and then with the help of your financial advisor, in this case generally a selling broker, have them determine some, low, low risk mutual funds,” said Kaelber.

The stock market however is considered risky. Bonds on the other hand are usually less high risk than the market. And another very important piece of advice, diversify.

"Have portions of your money spread out in different areas," said Kaelber. "It is the safest way to not lose your money."

You can diversify within the same investments, however experts say it is less risky to diversity among different asset types, such as stocks and bonds. If you do chose to invest, experts also suggest you have a disciplined approach to your strategies and don't let your emotions take over decisions.

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