The concept of wealth management for young investors presupposes that they, indeed, have some moderate amount of wealth to manage. It doesn’t have to be that way. You don’t have to be dumping Trumpian numbers into your account to start developing good management skills because – now we’re going to tell you a secret – the more you manage your own money, the more of it you’ll have.
In other words, take an active role in your own investing and don’t leave all the heavy lifting to a broker. You know what? They’re going to charge you for the privilege and that comes out of your profit.
What’s the best way to get started managing your own investing? Here are a few tips.
1.Figure out how much you have to play with. First, you’ve gotta pay living expenses, bad debt, and create an emergency fund. After that, divvy up what’s left between long and short term investing goals. Don’t worry if it’s not much in the beginning.
2.Assess risk tolerance. It’s a fact of life that no two people have the same level of risk-taking built into their personality. Figure out what yours is. Skydiver or plodder? One’s not better than the other but you need to know beforehand because it will make a difference in how you spread your assets.
3.Shape your portfolio. Here’s where you get down to the nitty gritty of wealth management. How much will you put into stocks, bonds, mutual funds, or real estate? Based on your self exploration in the first two points, it’s time to create and execute your actual investing plan.
While the preceding isn’t everything you need to know about managing your wealth, it should get you moving in the right direction. Good luck!
The Young Wealth Team