The financial landscape has changed a lot over the past couple of years. Between inflation and soaring interest rates, many people are looking for ways to offset the rising cost of living.
The good news is that with higher interest rates, you have the potential to earn more interest on your money through smart investments. Investing your money wisely can help you outpace inflation while growing your savings and building financial resilience for whatever the future may bring.
If you’re new to investing, now is the perfect time to get started. And if you’re already a seasoned investor, it’s a great time to check in on your investments and determine whether you should reallocate funds to take advantage of higher interest rates.
Whether you need help planning an initial investment strategy or simply want to fine-tune your long-term financial plans, our Investment Services team13 is here to help you get a clear picture of your finances, assess (or reassess) your risk tolerance and help you get on track to meet your future goals.
For beginners: Determine your investment readiness
Anyone can become an investor, and it doesn’t take much to get started. But how can you tell if investing is the right next step for you?
According to The Motley Fool financial advice website, here are four signs you’re ready to start investing:
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You’ve paid off your high-interest debt.
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You have an emergency fund.
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You have spare cash to invest.
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You understand the basics of how investing works.
If you feel like investing is the right move for you, the first step is to pinpoint your financial goals and consider your investment timeframe. What are you saving for? How long do you have? And how much risk are you comfortable taking on?
Next, decide whether you want to take a do-it-yourself approach to do the research or engage a professional to manage your investments for you. Finally, you’ll need to choose what type of investment account to use and choose a combination of investments that matches your risk tolerance while maintaining a diverse mix of stocks, bonds, mutual funds, etc.
If you’re not quite ready to invest, you can start taking steps to prepare for investing. Start with as little as $5 and open a high-yield savings account to grow your money. To get started with these first steps, consider an OCCU Ignite Savings account to jump-start your savings.
Once you have some money saved up, you can use a portion of your funds to open a certificate of deposit (CD) to give your savings a boost. As your balance grows, you may want to consider opening a money market account to maximize your interest earnings until you feel ready to start investing.
For seasoned investors: Review your investments
Your investment strategy is based on two key factors: where you are in life and where you want to end up.
As the financial landscape changes, it’s important to take the pulse of your investments and adjust your strategy accordingly to optimize your portfolio’s performance in the current financial market.
Financial experts recommend a simple three-step process for fine-tuning your investments.
As you take stock of your investments, ask yourself: Has the current financial climate affected my risk tolerance? Have I made satisfactory progress toward my long-term investment goals? Am I happy with the performance of my current assets?
A lot has changed over the past couple of years, and your investment strategy may need a little adjusting to help compensate.
Ready to check in on your investments? Our team of expert financial advisors are ready to partner with you to create a financial plan. Learn more and connect with us today to get started.
