Try a Portfolio Layout to Get Comfortable With Investing
Investing is not as difficult as it sounds. But getting started can be overwhelming, even if you know the basic rules . To make it less scary, try creating a fictitious portfolio before diving into a real one.
LearnVest financial advisor Brad Klontz says that simulating an investment portfolio can help people simplify their investment process. First, pick some investments – stocks, index funds, fixed date funds – whatever you want to buy in real life. Then track these assets for several months.
“Ideally [this exercise] will teach you the value of a passive approach to investing,” says Klontz, referring to a low maintenance strategy that doesn’t encourage you to tinker a lot with your investments. “The sooner you realize that you cannot predict the market consistently, the less [real] money you will lose.”
The idea is not really to see how well you are doing. You just want to see how the market works so you can get comfortable with it. Knowing what you are dealing with can make things less intimidating.
Check out the full publication for more details.
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