4 Investing Tips For Beginners

by Lauren Beichner

Marketing Specialist


If you're interested in starting to invest but have no idea where to begin, you aren't alone! In fact, only 55 percent of adultsin the United States invested in the stock market this year. With an eye opening statistic like that, it's clear that more Americans need to start investing. Whether you choose to invest your money in stocks or in mutual funds, it's essential that you put your funds into some kind of investments in order to make the most of your money. 

If you're new to investing, here are the beginners tips you need to know: 

Explore Our Investing Module

4 Investing Tips For Beginners - Infographic

Check Out Coastal Wealth Management's Investing Options

1. Start Investing Early 

When it comes to investing, the sooner you do it, the better. It's okay if you can't invest a lot, but investing something is better than nothing. Start by seeing if your employer offers any retirement savings plans that you could invest your money in. If your employer offers a retirement savings account with a match, make sure you take advantage of this opportunity to invest your money and save. 

2. Know The Purpose Of Your Investments 

What you are investing for will change how you invest. You might be investing to save for retirement. You might be investing to save for your child's college education. You might be investing to build your savings. It's important to know the reason for your investments because each investment is very different. With some investments you'll need to access them sooner, while other investments you'll want to keep in the investment for longer. Additionally, if you are investing money that you won't need for a long time, you can be riskier with your investments. 

3. Be Aware Of Your Risks 

It's no secret that when you invest money you are almost always taking a risk, however your level of risk will depend on your unique financial situation. When it comes to investing money, you need to ask yourself how much money you can afford to lose. Risk tolerance is the level of loss in investment returns that an investor is able to handle in their financial planning. In general, individuals with more disposable income can often afford to take greater risks with their investments. If you're unsure of your risk tolerance, meet with a financial advisor to go over your portfolio to determine what risks you can take on while remaining financially stable. 

4. Broaden Your Investments 

Investing in more things will help you reduce your risk of losing investment returns and money. Consider investing on a smaller scale but with a wider net. If the market should fluctuate, having a diverse portfolio will also help you not panic because you'll know that your money isn't all in one place. If one of your assets isn't performing well, odds are one of your other assets will be. Diversifying your portfolio is a balancing act that reduces your risk of being invested in one asset class.

Not Sure Where To Begin?

Investing may seem complicated at first, but if you meet with the right financial advisor you'll get the help you need to grow your investments. 

Coastal Wealth Management, available through CFS*, offers a wide variety of investment options so you are sure to find the right fit for you. Connect with a CFS Financial Advisor to discuss your risk preference and get advice on the investment that’s right for you.

Connect With An Advisor


Back To All Articles

Social Blog Features

1. According to Statista.com, 2021. 

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Coastal Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.