There’s often a disclaimer at the beginning of an investment offer. Sure, reading the offer document is important before investing; but, have you really thought out your investment strategically? Here are expert tips that will ensure you don’t tread the risky ground while investing.

Strategize

Before plunging into the investment world, you’ll have to strategize your expenses. First and foremost, a tight budget is needed. It will record the occasional expenses along with a 20 per cent savings quota. Investors will have to pay all their debts and create a backup fund.

Don’t be shy, ask for help

Investment is a heavy word for a lot of beginners. The whole process of investment can prove to be overwhelming as well. The first step involves setting up an investment account. Julie Rains, an investor and journalist, recommends calling the customer service agent at the brokerage firm if you don’t know how to open and fund an account.

Keep in mind that they will not humour you with investment advice. However, they will introduce you to tools that can help you make the right investment decision.

Automation and simplification

Your future self will thank you for keeping your present investment habits simple. Don’t heed too many advice, find what works for you and stick with it. Mike Piper from ObliviousInvestor.com says, “Automate your contributions every month — whether to an IRA, a retirement plan at work or both. A risk tolerated low-cost and all-inclusive fund works best.” Mike Piper maintains that this plan saves time and minimizes risk.

Consider less risky avenues

A lot of investors, including Gennady Barsky, consider real estate to be the perfect low-risk high-gain investment option. Peer-to-peer lending is also a good option if you properly screen the borrower you are lending, else it can be a really risky affair. If that doesn’t work out for you, Gennady Barsky suggests bank bonuses, dividend-paying stocks, municipal bonds, annuities, certificate of deposit, and high-interest savings.

Set it and forget it

Rookie investors should take the 401k plan, which is a retirement savings plan. You won’t have to waste time in managing and rebalancing the investment. Just select a target-date fund for your 401k investment and work stress-free without worrying about your retirement.

Never make big investment

A big investment looks attractive but it is quite the opposite. It’s a no brainer that risk increases as the amount of the investment increases. Experts suggest buying a low-minimum mutual fund. The initial investment can be as low as $100.

Don’t trust the idiot box

Television is good for entertainment and news, but it is a terrible channel for the financial market. The analyses and advice offered on the television can be quite different from the real-time numbers; hence, it is a disaster recipe to rely on the telly tube for your investment decisions.

Don’t watch the tech charts

Watching the tech charts and attempting to time the stock market looks smart, but it is not. Over-analysis of the stocks can be a waste of time. Instead, choose a company that has been proven genuine and have products you can count on.

Take a look around

Look at the social and financial changes around you. You’ll realise what’s hot and what’s not. Investment expert Gennady Barsky advises you to keep an eye out for changing trends. For example, minimalist watches are coming back into fashion after a lot of people switched to a simpler time keeper from multifunctional digital watches. Traditional watch companies can be a good area to invest in.

Would you like to add something to the list? Let us know in the comments!