Investor Who Managed Over $140 Million Gives Investing For Beginners Advice
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Kevin L. Matthews II is an entrepreneur, former financial advisor, and best-selling author. While working in New York City as a financial advisor he managed more than $140 million. While Matthews is no novice, he does provide investing for beginners advice.
Matthews boasts a bachelor’s degree in Economics from Hampton University, a certificate in financial planning from Northwestern University, and a certificate in disruptive strategy from Harvard Business School. In 2017, Matthews was named one of the Top 100 Most Influential Financial Advisors by Investopedia. Matthews notes that you don’t have to be a stock market whiz in order to make sound investments. He stresses five key points for beginners to make their foray into investing a successful one.
Identify Your Financial Goals
You need to decide what you are attempting to accomplish with your investment – whether it be a risky short-term investment to try to make a quick buck or a long-term investment for retirement.
Find what works for you.
“Before you start investing, spend some time articulating what your financial goals look like,” Matthews told Grow. “Once you have your goals in mind, they can help dictate how you approach your financial education. If you want to know more about retirement, for example, then you may want to focus on learning about different retirement accounts. Start with one type of account, like a 401(k), and then move on to the next concept.”
Start Slow And Take It One Step At A Time
“Learning should be incremental, meaning that one lesson or idea can build on the next to better understand more complicated or riskier investments,” Matthews said. “When I began learning about the stock market, I started by learning about index funds. Then I started learning more about individual stocks, and then eventually moved on to cryptocurrencies.”
Once you see what works and what doesn’t work, you can alter your strategy.
He recommends expanding your investment knowledge – even if it means reading one investment article each day or by setting notifications on your phone for your favorite financial publication.
Seek Investment Advice From The Experts
He notes that you wouldn’t be shy to ask your doctor for medical advice, so you should ask experts to provide investing for beginners advice.
Matthews advises that if you do hire a financial planner, it should be a fee-only planner – which is one that is “paid directly by clients for their services, be it a flat fee, hourly rate or a percentage of assets under management.” Fee-only financial planners don’t “receive commissions or other payments from the providers of financial products they recommend to clients.”
He recommends that the financial planner be “curious” so they create an investment strategy tailored to your finances and goals.
Be Flexible and Open To A Variety Of Investments
Matthews suggests that your investment plan be flexible enough to “evolve” as market conditions shift and new investment types appear – such as cryptocurrencies.
Understand The Value Of Compound Interest
Compound interest is the interest you earn on interest. Having a diversified and well-balanced portfolio allows you to take advantage of compound interest.
Matthews concludes, “Ultimately, the most important lessons I’ve learned in my financial journey is that progress is more important than perfection, and never be afraid to ask for help. Just because finance is personal doesn’t mean that you have to do it all alone.”