Start Investing in Stocks and Set Up a Portfolio Review Schedule!

Start Investing in Stocks

Select the individual stocks, ETFs or mutual funds that align with your investment preferences and start investing. If you’ve chosen to work with a robo-advisor, the system will invest your desired amount into a pre-planned portfolio that matches your goals. If you go with a financial advisor, they will buy stocks or funds for you after discussing with you.

Upon successful execution of your order, the securities will be in your account and you’ll begin enjoying the rewards of the stock market. And yes, your funds will reap dividends and experience losses as the economy changes, but for the long-term, you’ll be taking part in the sector of investments that have helped investors grow their wealth for over a century.

As you make your initial stock purchases, consider enrolling in a dividend reinvestment plan (DRIP). DRIPs take the dividends you earn from stocks, either individual stocks, or mutual fund or ETF holdings, and automatically reinvest them back into the fund or stock. You may end up owning fractional shares, but you’ll keep more of your money working and less sitting in cash.

Set Up a Portfolio Review Schedule

Once you’ve started building up a portfolio of stocks, you’ll want to establish a schedule to check in on your investments and rebalance them if need be. A review schedule will help make sure your portfolio stays balanced with a mix of stocks that are appropriate for your risk tolerance and financial goals. Market swings can unbalance your asset mix, so regular check-ins can help you make incremental trades to keep your portfolio in order.

There’s no need to check in on your portfolio daily, so a monthly or quarterly schedule is a good cadence. As you review your portfolio, remember that the goal is to buy low and sell high. Investing in stocks is a long-term effort. You’ll experience inevitable swings as the economy goes through its usual cycles.