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Investing For Beginners: Financial Tips To Get Started – NPR

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Illustration of a person standing in front of a life-sized chart showing different colors in waves and lines representing them balancing their stock portfolio.

LA Johnson/NPR

LA Johnson/NPR

Millions of Americans have started investing during the pandemic. And while the market has started to get a bit wobbly lately, stocks are still near all-time highs. So now is actually a really good time for people new to the world of investing to figure out how to get their ducks in a row and their investments set up in a smart way for whatever the future may bring.

If you’re an everyday investor drying to sift through Reddit threads and YouTube tutorials, this is for you. Here are a few common mistakes to avoid and some actionable tips to get you on your own investing path.

Betting on a hot stock isn’t worth it.

Despite news headlines on life-changing investments on one stock item like GameStop, it is too risky to make short-term bets with sizable sums of money on what a stock is going to do next. Instead, some of the most respected investors in the world have long said the best way for everyday investors like you and me to make money is to invest in index funds and hold those investments over long periods of time.

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Most index funds offer low fees and will allow you to essentially buy the entire stock market. That way, if any one stock crashes it won’t affect your portfolio. And if you really want to bet on individual stocks, the best advice is to do that with a very small part of your portfolio — and only with an amount of money you can afford to lose.

Build a diverse portfolio.

The key to everyday investing is diversification, which means owning different types of investments to spread out the risk. According to investment manager Paula Volent, you definitely want to own stock index funds because stocks over time have always offered the best return. She suggests owning a broad U.S. stock market index fund, a foreign developed markets index fund and an emerging markets index fund.

Volent also says you need investments that can do well when stocks are doing poorly. These include Treasury bonds and real estate funds. As far as how to know how much of each of these components is the right mix for you, there are different ways to figure that out. Age-based, or so-called “target-date,” index funds put together a mix of many of these components for you with a risk profile based on how many years you are away from retirement.

For more guidance, read David Swensen’s Unconventional Success.

Want to learn more? If you’re going to read one book, check out economist David Swensen’s Unconventional Success. It’s the ultimate introduction to everyday investing from a world famous investor who set out to tell the rest of us how to do this right. Jack Bogle’s book Common Sense On Mutual Funds is another classic.

Working with a financial adviser? Make sure they’re fee-only.

Checking in with a financial adviser is strongly recommended by experienced investors, but make sure you’re speaking with a fee-only expert, who isn’t receiving commissions for steering you into one investment over another. Once you find someone acting in your best interest, try to meet with them once a year or every two to three years. Find someone you can pay a flat fee for each visit. This will save you money in the long term

Rebalance your investments for stability and to maximize your return on your investments.

There is no need to panic, even in times of big corrections in the market. With a diverse investment portfolio, you actually have an opportunity to make some extra money off of big swings in the markets by selling what has gone up in value and buying more of what’s gone down.

Let’s say you’ve decided you should have 50% of your portfolio in a mix of stock index funds. If stocks crash and bonds rise in value, then the stock portion of your portfolio might only be worth 45% of your overall portfolio. You can sell some bonds and buy more stocks to get back to the target in your investment plan. Buying low and selling high is the right way to make money investing. But you’re not doing this randomly. You are sticking with your plan for your target allocation in your core portfolio.

Bottom line — please don’t panic and sell everything just because the stock market crashes and you see other people panicking and getting rid of their stocks. That can do irreparable harm to your portfolio. Buying high and selling low is not a good way to make money.


The audio portion of this episode was produced by Janet W. Lee.

We’d love to hear from you. If you have a good life hack, leave us a voicemail at 202-216-9823, or email us at LifeKit@npr.org. Your tip could appear in an upcoming episode.

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How To Invest Money To Secure Your Family's Future – The Seeker

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How To Invest Money To Secure Your Family’s Future – The Seeker Newsmagazine Cornwall

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Elon Musk sold nearly $7 billion worth of Tesla stock—here’s how much money you’d have if you’d invested $1,000 in the company 10 years ago – CNBC

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Tesla CEO Elon Musk sold 7.92 million shares of the electric vehicle manufacturer worth about $6.88 billion between Aug. 5 and Aug. 9, according to a series of recent SEC filings.

As of Aug. 9, Tesla shares were valued at about $850 each at the close of trading. That price has fallen by a little over 9% since the close of trading on Aug. 4, when shares were $938 each, according to CNBC tracking.

As for how shareholders would fare longer-term, if you had invested $1,000 in Tesla one year ago, on Aug. 11, 2021, your investment would be up by about 23%, according to CNBC calculations, for a value of around $1,230, as of Aug. 10, 2022.

If you had invested $1,000 five years ago, on Aug. 11, 2017, your investment would be worth around $12,160.

And if you had invested $1,000 on Aug. 11, 2012 and given your investment a decade to grow, you’d have around $145,341 as of Aug. 10, 2022.

Musk’s latest sale comes despite his announcement earlier this year that there were “no further TSLA sales planned” after he sold about $8.4 billion worth of his company shares in April.

So what’s behind this latest move? The billionaire says it’s due to his ongoing legal battle with Twitter.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk tweeted, after replying yes to a question about if he was done selling shares.

Back in April, Musk announced his intention to buy the social media giant for $44 billion or about $54.20 per share. As of Aug. 10, Twitter shares were valued at about $44 each at the close of trading. A share of Twitter stock was valued at about $45 on April 14th when Musk made his announcement.

By July, however, the SpaceX CEO told Twitter that he wanted to cancel the deal. In a letter to the company, Musk’s lawyers claimed that Twitter failed to provide “information that would allow him ‘to make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.'”

Twitter called Musk’s attempt to bail out of the deal a “model of hypocrisy” and said his claims “lack any merit,” according to a legal complaint filed by the company.

Although Musk is now pushing for a public debate with Twitter CEO Parag Agrawal, the head of the microblogging site said he plans to let the courts decide the fate of this deal, with a trial set to begin in October.

When it comes to the stock market, be sure to do your research before investing and remember that a stock’s past performance can’t be used to predict future earnings. An alternative option to investing in individual stocks is to invest in the S&P 500, a stock market index that tracks the stock performance of 500 large U.S. companies.

Although the S&P 500 shrank by nearly 6% compared to this same time period last year, the index has grown by 71.94% over the past five years and 198.58% over the past decade, according to CNBC calculations.

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Don’t miss: Mark Cuban: Buying real estate in the metaverse is ‘the dumbest’ idea ever

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Canada Pension Plan Investment Board loses 4.2% in Q1, net assets total $523B – Cornwall Seaway News

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TORONTO — Canada Pension Plan Investment Board says its fund, which includes the combination of the base CPP and additional CPP accounts, lost 4.2 per cent in its latest quarter.

CPPIB ended the quarter with net assets of $523 billion, compared to $539 billion at the end of the previous quarter.

The board says the $16 billion decrease in net assets for the quarter consisted of a net loss of $23 billion and $7 billion in net transfers from the Canada Pension Plan.

The board says the fund’s quarterly results were driven by losses in public equity strategies, due to the broad decline in global equity markets.

It also says investments in private equity, credit and real estate contributed modestly to the losses this quarter.

CPPIB CEO John Graham says he expects “turbulence” in the business and investment environment to persist throughout the fiscal year.

This report by The Canadian Press was first published Aug.11, 2022.

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