4 Things New Investors Shouldn’t Do

Are you new to investing in the stock market? Well, there seems to be quite a bit of interest in the market these days, as I have been getting a ton of questions recently on what to invest in.

So instead of telling you what stocks to buy, here are 4 things that I suggest you not do:

1. Do not invest your grocery money.

Only invest money that has been budgeted for investment purposes. Putting your family’s living money at risk is a bad move.

2. Do not pick individual stocks.

Most new investors get their stock tips from magazines or TV shows. Hint: If it’s in a magazine or featured on a TV show it’s probably a little too late. Instead, invest in low-cost mutual funds or ETFs.

3. You don’t need a account manager.

You see, new investors typically do not have enough investable funds to get the best money managers. The top managers have a minimum requirement of $500,000 at the lowest level. Instead, try using companies like Vanguard that offer low cost funds to get you started.

4. Do not wait to start investing.

Playing the waiting game could cost you more in the long run as inflation typically outpaces your earnings from a savings account.

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