Once you’ve managed your finances under control, having balanced budget, secured assets, enough savings, minus major purchases, you are now ready to invest the rest of your money.

Investing comes in many forms connected with the financial markets such as stocks, bonds, indices, options, real estate, and more. Finance investing can be done singly or through a broker. Either way, you have to be sure of your moves and avoid investing pitfalls.

Here are some tips about investing from Your Credit Advisor:

1. Be wary of mutual funds.
2. Don’t try to pick stocks.
3. Avoid fees. With long term investing, fees are a primary factor in total return.
4. Stocks are high risk, high reward.
5. Stocks first, bonds later.
6. Past performance is not a guarantee of future success.
7. Diversify your portfolio.
8. Build a nest egg that is 25 times the annual investment income you need.
9. If you don’t understand how an investment works, don’t buy it.
10. Don’t borrow from your 401(k).
11. Invest for the long term.
12. Seek professional help.
13. “Fee-only” is your friend.
14. Index funds are your friend.

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