In order to build wealth effectively, you need to get comfortable investing.
While you have to assume some level of risk with any stock market investment, you don’t have to put everything on the line to be successful. In fact, the best strategies balance risk and reward – and it’s probably easier to achieve than you think.
Here are a few pieces of advice from financial planners to help you invest wisely.
1. Start in your retirement accounts
The easiest way to start growing your money in the stock market is through an employer-sponsored retirement plan, certified financial planner Michael Anderson of Maranantha Financial previously told Business Insider.
“The reason I love utilizing a 401(k) plan as a vehicle to start investing is because money will be automatically taken out from your paycheck each pay period,” Anderson said. “You don’t have to think about it, it’s automatic once you decide to participate, and you can adjust your contribution level at any time.”
Your employer has already chosen a selection of safe bet investment options in your plan, he said, so all you have to do is decide where to invest your money based on your risk tolerance and time horizon. Plus, your employer may offer to match your contributions, which can be motivation to save even more.
2. Keep it simple and low cost
The average investor looking to build wealth over a long time doesn’t need a complicated…