Getting Off the Investing Starting Line

Five easy steps

Courtesy of USAA

Like losing weight or going to the gym, once you decide to invest, you’ll find the time.  Remember these five easy steps from USAA.

1. Speak the language. The more you learn about the different types of investments, the less fear you’ll have about getting started.
2. Know what you’re working toward. Your goals will help you pick the right asset mix for you — among stocks, bonds, and cash.  It makes a difference whether you’re saving money for retirement or your first home.
3. Max out your savings plan. Automatically investing through your 401(k), 403(b), or TSP retirement plan is the fastest and easiest way to start investing.  Take full advantage of these tax-deferred investments.
4. Stay diversified. Asset allocation and index funds are great places to keep the proper balance between stocks and bonds as you near retirement.
5. Go easy on individual stocks. Stocks may sound sexy, but limit the number you own unless you have plenty of time to research and monitor your holdings on a regular basis.

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