Investing can be intimidating.
There are so many concepts, terms, and strategies for investing to get your head around. As if the finance world wasn’t complex enough, the investing world takes it to another level. Then there’s talk of knowing your goals, risk tolerance, and investing style. Not to mention news of markets being volatile and investment values going up and down daily.
Phew! It’s a lot to take in.
And you’re expected to put your hard-earned money into something you don’t even understand? Is this risk even worth the reward?
Information overload and decision fatigue are common for any beginner investor. Our aim in writing this article is to help you overcome those hurdles. To give you the confidence you need to start your investing journey.
Ready? Don’t worry – we’ll hold your hand through this one.
What do I need to know about investing?
There are a lot of well-meaning resources available to help you improve your investment knowledge. But with the internet, news media, social media, and unsolicited advice from family and friends, it can get overwhelming. But it doesn’t need to be.
Ever joined a dinner party conversation among friends, heard the terms “ETFs” and “bull market” then walked away scratching your head? You’re not the only one. When it comes to investing, you can come up against a lot of finance jargon that only leaves you more confused.
That’s not what we’re about at Pearler. We want to make investing simple, to help everyday people like you build wealth. And that starts by knowing what you’re walking into. Our goal is to arm you with the right information. Simple, down-to-earth investing facts for any first-time or beginner investor. We’ll tell you what you need to know so you can contribute your thoughts the next time investing comes up in conversation.
Now, let’s turn your confusion into clarity.
To get you started on the right foot, check out our First Time Investors Guide. We've compiled a list of articles and glossary terms. Among other things, you’ll learn:
- How to set up financial goals
- What to do before you start investing
- Investing mistakes to avoid
- How to understand the stock (a.k.a share) market
- Technical terms like “ETFs” and “bull market” (remember those?)
Work through these resources at your own pace, and you'll feel like an investing ace in no time!
Okay, I've checked your guide, and I’m feeling familiar with the concepts. But how does investing actually work?
Investing allows you to put your money in different assets like shares, exchange-traded funds (ETFs), bonds or property, so you can build wealth over time. Before you start, it’s important to figure out your investment goals, how much you want to invest, and for how long you want to invest. Also, think about how much risk you’re willing to accept and your desired time commitment. All this guides your investing strategy – how you choose to invest.
Once you’re clear on these aspects and know how much you want to invest, it’s time to decide what to invest in. Do your research to learn about the different types of investments, their features, risks, performance and requirements. This will build your understanding of which investments will help you reach your goals.
The next step is to choose a broker or investment platform ( like Pearler ) to invest through. Set up a brokerage account and add funds to it or link to your bank account. If you go with a CHESS-sponsored broker, you’ll get assigned what’s known as a Holder Identification Number (HIN).
Now, you’re ready to invest. You can search for the investment you want on the platform or broker’s website; enter the amount you want to buy; and submit your order. It’s easier than you think!
Is Pearler the right platform for me?
As mentioned, a key step in investing is choosing an investment platform. There are various platforms to choose from, some make investing simpler than others.
When exploring the different brokers and platforms, look into whether their mantra aligns with your values. Notice the language they use – is it easy for you to understand? What about the user interface – is it simple enough for you to navigate? There’s no right or wrong choice; just the one that works for you.
At Pearler, our mission is to help everyday people become successful long-term investors. We want to make investing rewarding, simple, and even a little boring. Our platform and tools support regular, passive investing over the long term, so you can build wealth and reach Financial Independence.
On the Pearler platform, you can invest in:
- Australian shares (including ETFs and listed investment companies)
- US Shares
- Managed investment schemes ( Pearler Micro )
- Shares for your kids ( Pearler Headstart )
Like we said, though, there are a range of investing platforms available. Shop around, compare platforms, and choose the one that best aligns with your goals and values.
How do I start investing with Pearler?
To start investing with Pearler, follow these simple steps:
- Download the app on Google Play or the App Store.
- Create your Pearler account.
- Provide your personal details (full name and date of birth).
- Select your investing goals (e.g. buying a home, early retirement).
- Complete the tax-related information (TFN).
- Supply your identification documents (birth certificate, passport, drivers’ licence).
- Once your documents are verified, your Pearler account is created.
- To start investing, click on the Invest button and select the asset you’d like to invest in. You can either manually invest, or use the Autoinvest feature to set up regular, automated investing.
The set-up process should only take you a few minutes. After that, you can invest.
Don’t know where to start? Follow the investing journeys of others in the Pearler community or check out the ready-made template portfolios to inspire you. With Pearler, you get to do the journey with a community of long term investors so you’re never alone.
Happy investing!
