- Portfolio: The compilation of all your investments. Diversifying your portfolio means to have many different kinds of investments so you can weather the ups and downs of the market. It’s the investing version of “Don’t Put All Your Eggs In One Basket!
For more information also visit Forbes Investopedia.
What are your goals?
The first question Michael asks a new client who wants to start investing is: Why are you interested in investing?
- Retirement planning through 401ks and IRAs
- Setting up a savings account
- Saving for your child’s college tuition, such as with a 529 Savings Plan
- Aggressively playing the market for those interested in actively trading stocks and bonds
- To have financial freedom and security in case you lose your job, have large unexpected expenses, etc.
Take time to figure out your long & short term investment goals. How old are you and how much longer do you plan to be working? How much do you currently earn? What are your spending habits and how can you change them so you can start saving for the future? Each person will have a different goal and different financial situation so their approach to investing will be different and as time goes on it may change. You may start with investing in a fund, and as you earn more money, you may diversify your portfolio by investing in individual stocks and bonds that may be higher risk.
Financial Planners/Financial Coaches
Technology today makes playing the stock market much easier for the individual than before. It is easy to open and manage your own e-trade account. However it is also just as easy to choose bad investments and lose lots of money playing the market when you don’t know what you’re doing! “Align yourself with someone who can help you put your money in the right place,” urges Michael. A financial planner or a fund manager can be a huge asset to you when getting started and as your portfolio grows. While these professionals will cost you a percentage of your portfolio’s profits, unless you can take the time to learn about the market and confidently manage your own investments, they will most likely earn you more money in the long run and pay for themselves.
After talking with Michael, I definitely felt better about the concept of investing, and my financial future in general! Despite the foreboding financial world that greeted me upon college graduation, it seems that investing is more Fab & Fru than I thought. Michael made me realize that though I may not have loads of money, at 23, I do have time on my side! Even by investing as little as 25 bucks today, I can get in the game and start taking control of my financial future!
Check out this Women’s Day article for more tips on how to grow your savings and make money!
*Michael Hardy is a Certified Financial Planner and partner at Mollot & Hardy Inc. in Buffalo, NY. It is often very cold in Buffalo so he has a lot of time to sit inside and think about financial issues facing his peers today. He is a 30 something himself who pursues art on the side to decrease the stress he faces from trying to convince his peers to start saving for their retirements now. If you would like to contact Michael feel free to call his office at 1(800)659-0754 or via e-mail Michael@mollot.com
{Registered Representative Offering Securities through Advantage Capitol Corporation, Member NASD/SIPC} {The views expressed are not necessarily the opinion of Advantage Capitol Corp., and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Investing is subject to risks including loss of principal invested. No strategy can assure a profit nor protect against a loss. Material discussed herewith is meant for general illustration and/or informational purposes only, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.}
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