Investing Basics Blueprint

Step 1: Why Investing Matters

• Investing helps grow your wealth over time through compounding.
• It's key to reaching long-term goals like retirement or financial independence.

Step 2: Know the Basic Investment Types

• Stocks: You buy ownership in a company; high growth potential, more risk, depending on the company type and industry.
• Bonds: You loan money to companies or governments; lower risk, lower return.
• Mutual Funds: Professionally managed pools of investments.
• ETFs: Similar to mutual funds but traded like stocks.

Step 3: Understanding Risk and Return

• Higher investment returns usually involve more risk.
• Diversification can help lower risk without sacrificing returns. This is a common investing strategy.

This can get pretty advanced, My Money Vision™ can teach you.

Step 4: Getting Started with Investing

• Start small — even $25/month can grow over time.
• Some individual company stocks may pay you dividends!
• Use tax-advantaged accounts like IRAs or 401(k)s if available.
• Choose a brokerage platform that matches your needs and comfort level.

Some of these different words and concepts might be confusing, which is okay! We can help you!

Step 5: Common Beginner Mistakes to Avoid

• Trying to time the market.
• Investing without understanding what you're buying.
• Letting emotions drive investment decisions.