Do you want to build wealth and ensure financial stability? Rani Tarek Jarkas highly recommends that you start investing as early as possible. Investing your money rather than just saving it in a bank account allows you to achieve more visible financial growth, stay ahead of inflation, save on taxes, and prepare for retirement.
Tips for budding investors from financial expert Rani Tarek Jarkas
- Get to know the basics
It’s important to build a solid foundation of the fundamentals before you start investing. New investors are bound to be confused by different terms and strategies, blindly following the advice of experts.
But for you to be able to develop your own strategy, you must learn the hard way. Start with finance books, keep up with stock market news, or obtain professional assistance from a Financial Services Executive.
- Determine your risk tolerance and set relevant goals
The stock market is incredibly volatile, and there’s always a chance for you to lose money. But the real question is, how comfortable are you with taking risks and dealing with fluctuating prices?
Risk tolerance can be classified into three levels: aggressive, moderate, and conservative. There’s no “recommended” level for beginners. The right choice will depend on your age, financial goals, portfolio size, and time horizon.
Speaking of goals, what do you want your investment money to do for you? Perhaps you want to save for retirement or buy a home in the next five years. But regardless of your objectives, you must keep them as specific as possible and revisit them regularly to adjust your timing, strategies, and risk appetite.
- Consider branching out
So, your retirement plan, emergency fund, and long-term investments are all set—what’s the next step in your investment journey? You can diversify your portfolio and place money in domestic and international stocks, bonds, and short-term investments.
It might also be time to explore riskier ventures. However, it’s best not to go all in when investing in high-risk areas. For example, in crypto, financial experts recommend that beginners only allocate 1% to 3% of their total portfolio.
Are you ready to start investing? Work with Rani Tarek Jarkas to find the right sectors for your specific goals and start building your wealth.