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Before you start investing, here's what experts want you to know – CNBC

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If you are ready to jump into the market, there are a few things experts want you to know.

Investing is a great way to grow wealth, but you have to be smart about it, said certified financial planner Cathy Curtis, founder and CEO of Curtis Financial Planning in Oakland, California.

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That means not necessarily following the latest hot stock or trade.

“A lot of young people have a distorted view on how to invest in the markets,” said Curtis, a member of the CNBC Financial Advisor Council.

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“They invest in IPOs [ initial public offerings], companies they think are cool,” she added.

“It makes sense to them to buy those things they see friends and girlfriends using those products, but they don’t necessarily understand if it makes a good investment.”

New investors flooded the market during the pandemic. Some piled into certain names, like meme stocks, or jumped into cryptocurrencies.

While the S&P 500 Index ended up more than 25% higher in 2021, it’s a different story in 2022, with the index down about 13% so far for the year. Cryptocurrencies have taken a beating.

That has led to a surge in skepticism around the markets for young investors, said financial advisor Mitch Goldberg, president of ClientFirst Strategy in Melville, New York.

“Every generation has to go through this,” he said.

“This generation is no different than what we went through in the tech wreck of 2000,” Goldberg added. “People thought they had it all figured out with the new paradigm.”

Steps to take

If you have a 401(k) plan, the first thing you should do is put money into it, at least up to the company’s match, Curtis advised.

If that isn’t an option, open a Roth individual retirement account. (See income limits here.) The money goes in after tax, so it grows tax-free and isn’t taxed when you withdraw it. You can also take out your contributions at any time, penalty-free.

When choosing investments, the best thing to do is keep it simple. Start by using a diversified fund, like an S&P 500 Index fund, Goldberg said. Not only will it help you grow your money long-term, it will also help you learn more about the markets.

Remember, history shows that, over time, the stock market goes higher. Since 2009, the S&P 500 has averaged gains of about 15% a year.

Also, set aside money to invest from your paycheck before you start spending, otherwise you’ll be relying on sheer willpower to get it done, said Goldberg

“If you save and invest the money first before you spend the rest of your paycheck, your odds of becoming an investor and accumulating a net worth goes up substantially,” he noted.

Finally, don’t get caught up in knowing the number you need for retirement at this point, according to Goldberg. That can be overwhelming and prevent you from getting started.

“Just start small,” he said. “It could be $50, $100 a month or a week just to get used to the idea of having money in another account.”

SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox. For the Spanish version Dinero 101, click here.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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Tense diplomatic relations may not impact trade, investment ties between India, Canada: Experts

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NEW DELHI: The tense diplomatic relations between India and Canada are unlikely to impact trade and investments between the two countries as economic ties are driven by commercial considerations, according to experts. Both India and Canada trade in complementary products and do not compete on similar products.
“Hence, the trade relationship will continue to grow and not be affected by day-to-day events,” Global Trade Research Initiative (GTRI) Co-Founder Ajay Srivastava said.
Certain political developments have led to a pause in negotiations for a free trade agreement between the two countries.
On September 10, Prime Minister Narendra Modi conveyed to his Canadian counterpart Justin Trudeau India’s strong concerns about the continuing anti-India activities of extremist elements in Canada that were promoting secessionism, inciting violence against its diplomats and threatening the Indian community there.
India on Tuesday announced the expulsion of a Canadian diplomat hours after Canada asked an Indian official to leave that country, citing a “potential” Indian link to the killing of a Khalistani separatist leader in June.
Srivastava said these recent events are unlikely to affect the deep-rooted people-to-people connections, trade, and economic ties between the two nations.
Bilateral trade between India and Canada has grown significantly in recent years, reaching USD 8.16 billion in 2022-23.
India’s exports (USD 4.1 billion) to Canada include pharmaceuticals, gems and jewellery, textiles, and machinery, while Canada’s exports to India (USD 4.06 billion) include pulses, timber, pulp and paper, and mining products.
On investments, he said that Canadian pension funds will continue investing in India on grounds of India’s large market and good return on money invested.
Canadian pension funds, by the end of 2022, had invested over USD 45 billion in India, making it the fourth-largest recipient of Canadian FDI in the world.
The top sectors for Canadian pension fund investment in India include infrastructure, renewable energy, technology, and financial services.
Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the present frosty relations between India and Canada are certainly a cause for concern.
“However, the bilateral trade is entirely driven by commercial considerations. Political turmoil is of a temporary nature and should not be a reason to affect trade relations,” Saraf said.
He added that even with China, India has acrimonious relations but bilateral trade continues to remain healthy.
“In fact, bilateral trade is an effective tool to improve political relations. India must make special efforts to increase our bilateral trade with Canada,” Saraf said.
India and Canada have a strong education partnership. There are over 200 educational partnerships between Indian and Canadian institutions.
In addition, over 3,19,000 Indian students are enrolled in Canadian institutions, making them the largest international student cohort in Canada, according to GTRI.
According to the Canadian Bureau for International Education (CBIE), Indian students contributed USD 4.9 billion to the Canadian economy in 2021.
Indian students are the largest international student group in Canada, accounting for 20 per cent of all international students in 2021.
Benefits of educational partnerships are mutual and hence the current situation may have no impact on the relationship, Srivastava said.

 

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Apple supplier Foxconn aims to double India jobs and investment

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Apple supplier Foxconn aims to double its workforce and investment in India by next year, a company executive said on Sunday.

Taiwan-based Foxconn, the world’s largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.

V Lee, Foxconn’s representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi’s 73rd birthday, said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by this time next year.

He did not give more details.

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Foxconn already has an iPhone factory employing 40,000 people in the state of Tamil Nadu.

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Foxconn dangles incentives for workers as iPhone shortages plague holiday season

Foxconn dangles incentives for workers as iPhone shortages plague holiday season

In August, the state of Karnataka said the firm will invest US$600 million for two projects to make casing components for iPhones and chip-making equipment.

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The company’s Chairman Liu Young-way said in an earnings briefing last month that he sees a lot of potential in India, adding: “several billion dollars in investment is only a beginning”.

Taiwan election: Foxconn’s Terry Gou taps star-powered running mate

 

Last month, Foxconn’s billionaire founder Terry Gou said he would run for the Taiwanese presidency in next year’s election, as an independent candidate.

He said the ruling and independence-leaning Democratic Progressive Party (DPP) was unable to offer a bright future for the island and left Foxconn’s board following his decision to run.

The firm operates the world’s largest iPhone plant, in the city of Zhengzhou in Henan province.

 

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Foxconn to double workforce, investment in India by ‘this time next year’

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Foxconn, Taiwan-based Apple supplier, has said that they are planning to double their investment and workforce in India within the next twelve months, according to V Lee’s LinkedIn post on the occasion of Prime Minister Narendra Modi’s 73rd birthday.

Taiwan-based Foxconn, the world’s largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.

Notably, Foxconn already has an iPhone factory in the state of Tamil Nadu, which employs 40,000 people.

V Lee, Foxconn‘s representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi’s 73rd birthday, said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by this time next year.

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In August this year, Karnataka governments had said that Foxconn has planned to invest $600 million for two projects in the state to make casing components for iPhones and chip-making equipment.

Earlier this month, Young Liu, Chairman and CEO of Hon Hai Technology Group (Foxconn) had said, ‘India will be an important country in terms of manufacturing in future’.

In the past, it took 30 years to build the entire supply chain ecosystem in China, he noted, adding that while it will take an “appropriate amount of time in India” and the process will be shorter given the experience. The environment too is not quite the same, he said pointing to the advent of new technologies like AI and generative AI.

Meanwhile, Apple Inc. has announced plans to make the India-built iPhone 15 available in the South Asian country and some other regions on the global sales debut day, according to a Bloomberg report.

While the vast majority of iPhone 15s will come from China, that would be the first time a latest generation, India-assembled device is available on the first day of sale, they said, asking not to be identified as the matter is private.

Apple introduced the iPhone 15, updated watches and AirPods at a gala event at its US headquarters. Sales of new products begin typically around 10 days after the unveiling.

 

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