You may have heard about investors who get in on the ground floor of a hot new company and quickly make a fortune — but that’s rare and certainly not a viable plan for most people. Instead, try to follow a slowand-steady strategy.
With this approach, you can start out small. If you’re beginning your career and you can’t afford to invest large amounts, put away what you can each month into stocks or mutual funds. When your salary goes up, you can increase your contributions.
And take advantage of your employer’s 401(k) or similar retirement plan. At least try to put in enough to earn your employer’s matching contribution, if one is offered.
Also, don’t let the inevitable drops in the market throw you off from consistently investing — ups and downs are a normal feature of the investment landscape. Finally, check your progress regularly by comparing where you are today versus where you were last year — and where you want to be in the future.
Slow and steady may not sound like an exciting approach to investing. But a little less excitement, and a lot more diligence, can prove to be quite effective.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Member SIPC