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Understanding Investments – How to Invest in What’s Ahead 

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Produced by American Express, VantageScore Solutions and TransUnion

Investor Brian Portnoy guides contractor Richard Yoshida through his first steps into the financial markets.

Investing holds the power and possibility to make your money work for you instead of you working more for your money. Although there is no guarantee you’ll make money in the markets, it is also something you don’t need to be intimidated by—and may already be participating in. So, how do you know when to jump into the market and how do you navigate once you’re there?


THE GAME PLAN

Investing holds the power and possibility to make your money work for you instead of you working more for your money. Although there is no guarantee you’ll make money in the markets, it is also something you don’t need to be intimidated by—and may already be participating in. So, how do you know when to jump into the market and how do you navigate once you’re there?

 

  • WHAT ARE YOUR GOALS? Do you want to retire early? Buy a cabin on a lake somewhere? Or just be debt-free by a certain age? Once you have your investment goals, you can then see the timespan needed to reach those goals and pick the right investments.
  • WHAT IS YOUR TIME HORIZON? Do you want to reach your goal in 5 years or is it more like 40 years? Identifying your time frame can help you choose the investments that can potentially give you the return you’d need to achieve your investment goals. It can also help you figure out what types of securities should be a part of your portfolio. And remember, with compound interest, small contributions over a long time can add up to big gains.
  • WHAT’S YOUR COMFORT ZONE FOR RISK? All investments involve some degree of risk. If you intend to purchase securities—such as stocks, bonds, or mutual funds—you must understand before you invest that you could lose some or all of your money. First take an honest look at your entire financial situation, perhaps using the debt-to-income ratio. This will help you decide how much you can invest and how willing you are to absorb losses for the chance of larger gains.
  • ARE YOU ALREADY TAKING ADVANTAGE OF “FREE MONEY” FROM AN EMPLOYER? In many employer-sponsored retirement plans, the employer will match some or all of your contributions. If you’re not contributing enough to get your employer’s maximum match, you are giving up “free money” that you could otherwise add to your retirement savings.

NO INVESTMENT ADVICE. The content of this webcast is for informational purposes only. You should not construe any information or other material contained herein as legal, tax, investment, financial, or any other type of advice or as a recommendation to take any specific action by any entity or person. All Content is information of a general nature and does not address the circumstances of any particular individual or entity.

 

All investments or investment strategies involve the risk of loss. You should not use this webcast to make financial decisions. You should seek professional advice from someone who is authorized to provide investment or other financial advice.