A Look at Some Top Investing Strategies

You work hard for your money, and you deserve for your money to work for you in return. Investing your money is often a wise decision, but it can be difficult to navigate the many choices you have when it comes to investment. You probably know that you need to plan for retirement, but what is the best way to get the most out of your money? Keep reading for a look at some of the top investment strategies.

Dollar-Cost Averaging

Even if you are new to investing in the stock market, chances are you have heard that you should buy low and sell high. This is one approach you can take, but it involves trying to time the market—something that can be tricky to do, especially for new investors. Instead of timing the market, you can simply invest the same amount of money each month in whatever stock or mutual fund you choose. When you set aside the same amount of money each month, you’ll get more used to saving and investing so that it becomes a habit. You’ll be able to buy more shares when the prices are low, and fewer shares for the same money when prices are high.

Reinvest Dividends

Investing in the stock market can provide you with both short-term and long-term rewards. While it might be tempting to take your short-term gains and run, a better investment strategy is to take the dividends you’ve earned and reinvest them to buy more stock. Talk to your broker to find out if they offer a service to automatically purchase shares with your dividends.

Protect Your Profits

Successful investment strategies don’t mean much if you aren’t able to keep the money you’ve earned. You can invest the money you earn in IRAs and other retirement plans to shelter it from the IRS. Ask your investment advisor about smart ways to keep the IRS from taxing what you earn.

Financial Directions, LLC is an independent Registered Investment Advisor serving clients across the Tucson area with sound investment advice and retirement planning. Call us at 520-408-7777 to find out more about what we do, and learn how we can help you save for your future.

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