Start investing today: 5 steps to take right now
For those new to investing, getting started isn't complicated, we breakdown how to get in the game in five easy steps.
If your thinking about investing there is no time like the present, advises Rosecliff founder and managing partner Mike Murphy. "Recessions come and recessions go, people need to look for opportunities to invest and not try to time the next recession" he told FOX Business' Stuart Varney.
Here's his five steps to getting started in FOX Business' Financial 101 Planning series.
Get at it. There is no need to monitor the markets, just decide you're ready and set aside some funds. "They should start investing today, not wait for maybe the market's down tomorrow, or maybe they'll be a better time in six months", Murphy advised.
Anticipating market moves is challenging for even the most seasoned traders, says Murphy. It's unwise to try and time the market. "For most people, professionals even, it's tough to trade successfully", he warned. Instead, let your money sit and grow.
Decide what your goals are; long-term, short-term or retirement. Then decide how much you can allocate each month or quarter and start investing.
INFLATION RISES FOR A THIRD STRAIGHT MONTH
Murphy recommends low-cost exchange-traded funds (ETFS) that hold a basket of stocks for broader exposure.
A good option, he noted, is the SPDR S&P 500 ETF trust, which mirrors the S&P 500, the broadest measure of the U.S. stock market. So far this year the fund has returned over 10%.
The fund's heavily weighted in large cap tech, according to filings. Those stocks include Microsoft, Apple, Nvidia and drugmaker Eli Lilly to name a few.
It's a good idea to keep track of your returns every month, quarter and year, according to Murphy. "History has proven 100% of the time, its proven, if they leave that money there over time it's going to compound and increase in value," he said.