Exactrades February 4, 2013 0

Sometimes there are just so many choices that its so hard to pick a few. Most investors feel that way. There are thousands of stocks, mutual funds, bonds, etc. to choose from. The available options are both tempting and distressing. Encouraging individuals to become investors is a tough feat especially if investing sounds like a ton of work. Newbie investors might feel like managing an investment portfolio is a full-time job. Truth be told, you can generate substantially more income from keeping your day job than investing. However, if you start investing a generous part of your income as early as now, a material amount of income will be generated over time.

Time is gold the saying goes and in case of investments, this is true. You can expand you net worth by accumulating money from various investments. Do not put your eggs in one basket is another apt adage. Diversify your portfolio but not to the point of chaos! Well, thats enough words of wisdom for now. If you want to start investing today but you dont want to be a mess, do not fret! If you are on clean-up mode with your investments that are lying around and not making sense, there is a way! There are ways to simplify your portfolio and automate your investments. These efficient and time-saving steps will uplift your mood as soon as your portfolio makes a lot more sense.

Consolidate Your Investments

Consolidate the most recurring investments such as bank accounts, bonds, mutual funds, etc. Retirement fund is a good place to start cleaning up. How many retirement funds do you have? If you have more than one, then youre lucky but managing it could also cause your early retirement. To reduce paperwork and stress, you can literally roll your 401(k) into a single Rollover IRA. This will save you from a great deal of unnecessary complexity and it can also offer more options for investing across the portfolio.

Invest Periodically

Set your investments on autopilot by instructing your bank or broker to transfer funds periodically to your investments. Not only will this save you time, it will also encourage you to invest regularly. Automatic contributions to your 401(k) is also a fairly neat setup. This way, you will only have to review your investments and rebalance your accounts quarterly.

Bundle Your Stocks Through Index Funds and ETFs

Index funds and exchange traded funds (ETFs) are a form of investing on the movement of a whole index or a bundled stocks. Index funds and ETFs are basically packaged investment assets that combine stocks into one big asset. Instead of keeping track of hundreds of stocks, you can just look at the S&P 500 or Dow Jones if you are investing in index funds. ETFs are traded like stocks in the market but buying ETFs is like buying hundreds of stocks rolled into one.

Stick With A Familiar Asset Class

As a new investor, exotic investments such as options, futures, derivatives, etc. can be intimidating. Stick to the ones you know first stocks, bonds, mutual funds. Do not venture into new investments without enough advice and research. Create an effective portfolio from the basics and work from there. Complex investments can join your portfolio later when the basics are in place. In fact, you dont need exotic investments. You can build a fortune by sticking to what you know.

Pay Attention To The Outflows

Read your bank statements, and retirement plans. Look closely on the outflows of your money, especially withdrawals from your bank or unusual deductions. Inflows will come to you soon enough but outflows should be monitored closely. If you find anything unusual, do not hesitate to talk with your advisor or broker.

Hire A Financial Advisor

If you dont already have one, get one! A financial advisor can really change your life! Some of us like to think we can do it ourselves until we get ourselves into some trouble with the numbers and cry for help. A good old financial advisor will help you sort out the investments that suit your financial goals, help you monitor your portfolio, and advise you on further steps to boost your investments. Take the best advisor in town and leave the rest!