How Do I Start Saving and Making My Money Grow?
We contribute to several forums that provide advice to novice investors. One of the most popular questions goes like this:
• I’m 28 and will start a new job soon. I have accumulated $10,000 in a savings account and will be able to save an additional $1000/month when I start my new job. I need advice on how to start an investment plan.
It’s a good question. The person asking it usually has some money in the bank and has enough income to add to his or her savings. But because interest rates are so low the savings are not growing. There are three common reasons for not starting an investment program.
Not knowing where to start. The mechanics of opening an investment account can be complicated.
Fear of making a mistake. People work hard for their money and don’t want to lose if because they made some rookie error.
Not knowing who to trust. Who will provide good, honest advice for you?
Here’s how to begin an investment plan that works for people of all ages.
- Find a Registered Investment Advisor (RIA) who is a fiduciary: who put their clients’ interests ahead of their own and provide unbiased investment guidance. They will help you through the process.
- Find someone with experience. You don’t want to deal with someone who’s learning with your money.
- Find someone who is accredited. A CFP™ (Certified Financial Planner) is trained to give advice on all aspects of financial planning.
- Find someone who does not charge commissions. It eliminates conflicts of interest.
- Find someone who has a good reputation in the community.
At Korving & Company, we’ve been helping people just like you make better decisions about their money and their lives for thirty years.