Having a goal in your career and setting your mind to reach that goal is the #1 tip for new investors. Think long-term goals when it comes to investing.

Babe Ruth, Muhammad Ali, and Emmet Smith were great for a reason, they had goals. The same is true of those entering the investment field.

Before even making your first transaction in the world of stock investing you should ask yourself, what are you expecting to achieve?

Everybody likes to be charitable, but it has a place and a time and neither is found in the world of stock investing.

What Do Investors Want

Most investors simply want a good return on their investment. But what is considered a good return? Enough for retirement? I

If it is based on what they want for retirement the question becomes how long is it until retirement age?

If it is in two years your investment strategy will be much different than for those who are retiring in 15 years time.

The #1 Tip for New Investors
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Can I Begin Investing at 40?

As an example, let’s use me as a typical investor. 40 years old with a decent income and the ability to invest $300 per month. We’ll have to change my circumstances just a bit and imagine I have nothing in my portfolio but I want the ultimate dream – I want $1 million dollars to retire with.

The question is, if I have the $300 available right now, is my target something I can hit?

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Assuming that I can match – if not better – a stock index return which is running at 10.4% annually, my sum would be worth roughly $380,000 by the time I’m 65.

Damn – missed my $1,000,000 target!

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To hit that level – I need to invest more than $300 per month and would need need a return of at least 17 – 18%.

Okay – an index fund isn’t going to do it for me, especially as the history of these shows it won’t better much more than the 10.5% mark!)

What If I start Investing at 23?

Okay – let’s look at another scenario for me shall we?

Let’s imagine that I’ve actually been working away at my investments and funds for a while. I actually listened to my parents and have $100,000 saved away at 40 and have been investing since 23.

Can I hit the target million with that amount as a lump sum starter?

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Well, if I am set in using the index funds as my investment vehicle of choice, the answer is Yes!

So long as no major market upheaval occurs, I should have over the $1,000,000 mark by the time I retire. I won’t have to add a cent more to my savings either. Long story short, don’t put yourself in a position to have to play catchup. Begin saving now. Just making it a habit to invest.

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The #1 Tip For New Investors

But what makes this possible for me to hit my target? The fact that I HAD a target. That is the #1 tip for new investors-have a target and readjust it as needed.

It’s critically important to always have your GPS set, so to speak. Most people who claim that they didn’t reach their goals, never actually set any.

Investing and Having Goals

Goals – targets – aims, they all help us to focus on getting to the end of the race with the result we want.

Goals to help you focus on your investment are what help you design your investment plan.

Do you need to be aggressive and look for a major return or can you simply protect your savings and earn a more modest return to reach your goal?

Set yourself a (realistic) towards it, keeping it in mind always.

Budget well, stay modest and continue be focused.