Thrifty Thinking: Investing Tips for Gen X and Y

For many people who are struggling, especially Generation X and Y, the idea of investing money is a challenge. For many, actually considering where to put their money and  choosing certain investments is a whole new ballgame, that requires a great deal of thought and preparation. Investing money can be an extremely beneficial; however the hard part is figuring out how to do it on your own.

Folio Investing has five key tips on investing. The Company is a pioneer in the self-directed do-it-yourself portfolio investment markets and open to working with self-starting young investors.

• Diversify: As the saying goes, don’t put all your eggs in one basket. The problem is that buying different baskets may be an expensive proposition, especially if you are working with a small amount of investable assets to start. Fees add up as you begin to buy and trade stocks. Folio Investing, for example, is the only brokerage built with a model for cost effective investment diversification that allows you to increase returns with less risk.

• Personalize: One size does not fit all — yet that is what many investments, like funds currently offer. Would it really make sense to invest in the same fund as someone who is retired, or someone who is just starting their career? You need to invest in what makes sense for you.

• Invest Consistently: This is where investors of all ages fail. Emotional investing – jumping in when markets are good and jumping out during a down turn – is where most portfolios do not succeed.  This can be overcome by a platform that keeps fees low so you can stay active all year long.

• Minimize Taxes:  One mistake even the most skilled of investors is underestimating the impact of taxes on investment returns. So they ignore capital gains taxes until they have to pay them. This is where you see those huge end-of-year sell offs, and that can hurt your portfolio.  Tools found in the Folio Investing platform can help control your capital gains and losses to minimize taxes and maximize investment returns every day. 

• Reduce Costs: Most young investors do not realize fees can start to add up and soon might outweigh your gains. Over time, expenses and fees can really make a difference. Consider a commission-free or low-fee models such as the one offered by Folio to keep your cost low and manageable.

Since 1999, Folio Investing has promoted smarter investing by enabling cost-effective and easy customization and diversification and tax efficiency, and by offering highly unique products and services.