How to Become a Passive Investor
- 1). Determine your objective. Have a goal in mind before investing your money. For example, consider the age that you would like to retire. Have an idea of how much money you will need during your retirement years. Contemplate other goals, such as starting a business, paying off your house early or paying for your child's education. Knowing your long-term financial goals can help a financial planner determine the best strategy.
- 2). Speak with a financial planner to discuss your options. Passive investors can increase their worth with a variety of investment alternatives, such as money market accounts, investing in stocks, certificate of deposits and bonds. Sit down with your planner. Ask questions, such as what is the minimum you'll need to invest on a monthly basis. Learn the pros and cons of each investment strategy. With knowledge of your situation, planners can recommend the best strategy.
- 3). Rebalance investments. Some investment strategies perform better than others. Periodically speak with your financial planner to review your portfolio. Your planner will review your investments, and based on performance, decide whether you should re-proportion your funds to lower your risk and help keep your financial goals on track.
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