6115 Park South Drive
Suite 200
Charlotte, NC 28210



Learning Center

Investing Basics

Investing can be a powerful way to grow your wealth over time, but it’s important to understand the basics before you start. Here are some fundamental pieces of advice:

1. Set Clear Financial Goals:


  • Before you start investing, determine your purpose for investing. Are you saving for retirement, a down payment on a house, or some other financial goal? Your goals will influence your investment strategy.


2. Build an Emergency Fund:


  • Before you invest, make sure you have an emergency fund with three to six months’ worth of living expenses. This will provide a financial cushion in case of unexpected expenses.


3. Educate Yourself:


  • Learning about different investment options, such as stocks, bonds, mutual funds, real estate, and more can help you make informed decisions.


4. Diversify Your Portfolio:


  • Consider diversifying your portfolio by spreading your investments across different asset classes and industries. This can help reduce risk.


5. Risk Tolerance Assessment:


  • Understanding your risk tolerance helps determine how comfortable you are with market fluctuations. Your risk tolerance will help guide your overall investment choices. Generally, younger investors can take on more risk because they have a longer time horizon.


6. Start Early and Stay Committed:


  • The power of compound interest suggests the earlier you start investing, the better. Even small contributions over time can grow significantly. Stay committed to your investment plan.


7. Use Tax-Advantaged Accounts:


  • Tax-advantaged accounts like 401(k)s, IRAs, and HSAs, if available, offer benefits that can help your investments grow more efficiently.


8. Keep Costs Low:


  • Fees and expenses associated with your investments are important. Excessive fees can affect your returns over time.


9. Stay Informed:


  • Financial headlines and market trends are in the news, but don’t let short-term fluctuations influence your long-term investment strategy. Avoid making impulsive decisions based on market volatility.


10. Invest for the Long Term:

  • Investing is a long-term endeavor. Stick to your investment plan and avoid trying to time the market.


11. Seek Professional Advice:


  • If you’re unsure about your investment strategy or need personalized guidance, we can provide valuable insights based on your unique financial situation.


12. Review and Adjust Your Portfolio:


  • Regularly review your investments with us to ensure they align with your goals and risk tolerance. Rebalance your portfolio as needed to maintain your desired asset allocation.

Remember that investing involves risks, and there are no guarantees of positive returns. It’s essential to be patient, stay disciplined, and avoid making emotional decisions based on short-term market fluctuations. Over time, a well-thought-out investment strategy can help you achieve your financial goals.