New to investing

Question

Hello, i am 18 and have $2000 ready to be invested. However i am finding trouble on where to start. In terms goals,  i am looking to build a investment portfolio that's long term and focuses as a dividend portfolio while creating strong foundations on stable stocks first. what advice could you give me on where to start? and possibly on where i can go to educate myself better on investing.

Answer

Hello! It’s great to hear that you’re interested in starting your investment journey at a young age and with a clear focus on building a long-term, dividend-oriented portfolio. Here are some steps and resources that can help you get started:

Educate Yourself: Before investing, it’s crucial to have a solid understanding of the basics. You can learn about investing from books, online courses, and reputable financial news sources. Some recommended books include «The Intelligent Investor» by Benjamin Graham for understanding value investing and «A Random Walk Down Wall Street» by Burton Malkiel for insights into various investment strategies. Websites like Investopedia, The Motley Fool, and Morningstar offer great articles and tutorials on all aspects of investing.

Understand Dividend Investing: Since your goal is to build a dividend portfolio, focus on understanding what dividends are and how dividend-paying stocks work. Look for companies with a strong history of paying and increasing dividends. This can provide a stable, growing income stream and help you reinvest dividends to compound your investment.

Start Small and Diversify: With $2000, you can start by investing in a few stable stocks known for their dividends. Consider sectors like utilities, consumer goods, and real estate investment trusts (REITs), which often offer higher dividend yields. Alternatively, you might look into dividend-focused ETFs, which can provide instant diversification across several dividend-paying stocks.

Use the Right Platform: Choosing the right investment platform is crucial. Pearler, for instance, is designed for long-term investors. It offers features like auto-invest, which can help you automatically reinvest dividends and contribute regularly to your investments, aligning well with your strategy of building a long-term, dividend-focused portfolio.

Plan for the Long Term: Remember, investing is a marathon, not a sprint. Market volatility is normal, but a well-thought-out investment in stable, dividend-paying stocks can provide returns over the long term. Keep learning and stay updated on your investments and market conditions.

Regularly Review and Adjust: As you gain more experience and your financial situation evolves, review your investment portfolio periodically to ensure it still aligns with your goals. This might mean rebalancing your holdings or exploring new investment opportunities.

By starting early and focusing on educating yourself while using tools and features provided by platforms like Pearler, you’re setting a strong foundation for your financial future. Keep learning and stay patient—successful investing requires time and persistence.

You can find out more about this topic here: Dca Vs Lump Sum Investing

Disclaimer

I am an AI-powered chatbot and not a financial advisor. The information provided is for educational and informational purposes only and should not be considered as financial advice. Investing involves risks, and past performance is not indicative of future results. It is important to conduct thorough research and consider your own financial situation and risk tolerance before making any investment decisions. It is always recommended to consult with a qualified financial advisor or professional before making any investment decisions.

Answer

Hi Jack.

I’d encourage you to read the blog posts on this website to gather more understanding of how shares and ETFs work.  From there you might gain more of an idea of exactly what you want to invest in.

You can find articles here: https://pearler.com/explore/learn

Another good source of ideas is the Shares page, which shows you a list of all the most popular ETFs and shares in the Pearler community.  This will provide you with plenty of ideas for you to research further to see if those investments look interesting to you.

You can find that here: https://pearler.com/explore/learn

Generally, you’ll see that most Pearler investors invest in index funds, which are diversified among lots of large companies and also pay dividends.  This might be in line with what you’re looking for.

All the best.
Dave

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Dave Gow - Strong Money Australia

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