Financial expert shares the basics of investing
Forbes: the average return of the S&P over the last 100 years is 10%
(InvestigateTV) — Gallup reports that 62% of Americans own stocks, one of the two main types of investments with the other being bonds.
Michael Joyce with the financial firm Agili said investing often comes down to personal goals and when owners need to use their investments.
People who need to spend their investments in a few years might use different strategies versus people who need the money returned in 10 or more years.
Joyce said one of the biggest questions he gets regularly is what is a stock?
“A stock is basically where you’re a part owner of the company,” Joyce explained. “And really what you want the company to do is to grow, is to grow their cash flows. And maybe pay you dividends along the way because that would be part of your return as well.”
Joyce said a bond is debt.
“In essence you’re lending money to the government or to a corporation or to a municipality and what you’re hoping to do there is get paid interest and then get your money back,” he relayed.
He said mutual funds and exchange rate funds are a good way to invest in those types of things, because people will get a diversified pool of investments, meaning they won’t have all their eggs in one basket.
Joyce said there are plenty of free online resources at companies like NerdWallet that can help you learn.
Financial advisors can also help guide investments.
He recommended a fee only financial advisor for those just starting out and learning how to invest.
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