Know Yourself

Before you start investing, it’s important to know your financial self. This means understanding your financial goals, risk tolerance, time horizon, and investment knowledge.

Building a good long-term investment plan takes time and a willingness to learn, and if you’re open to it, the help of a registered investment professional.

You can gain further insights into your financial self by thinking about how you would react if your investments lose money or if you can be easily convinced to invest in a high-risk, high-return investment.

Be honest with yourself. Overestimating your investment knowledge can lead to problems, especially if you go at it alone.

Knowing your financial self can also help with your consideration in choosing the investment professional or service you’ll want to use to reach your goals.