Buzz
Investing might seem more complicated than it is. The real challenge is getting started, especially when you're already aware of the basic rules. A great way to ease the anxiety is to experiment with a mock portfolio before committing to real investments.
According to financial advisor Brad Klontz at LearnVest, a mock investment portfolio is a great way for beginners to get their feet wet. Begin by choosing investments—whether it’s stocks, index funds, or target date funds—and track these assets over a few months to get a sense of how they perform.
Ideally, [this exercise] will demonstrate the benefits of a passive investment strategy," Klontz explains, emphasizing an approach that requires little adjustment to your portfolio. "Once you grasp that predicting the market is nearly impossible, you'll be less likely to lose [real] money in the long run."
The goal here isn't to outperform others; it's to familiarize yourself with how the market functions. Understanding the mechanics behind it can make investing feel less daunting.
For further information, read the complete article.
Image courtesy of Chris Potter.
