Investing Tips 5 Have a Long Term Plan for Your Money

In the Stock Market, it can be crazy and at times very overwhelming, especially for someone that is new at the whole investing in stocks. That is why in this blog of Investing Tips we are going to over how important it is to have a long term plan for your money that you make while you are buying stocks from the stock market.

For a lot of new stock investors, it is exciting when your stocks climb higher and higher when there is a bull market, because that means that as a new investor you are going to end up getting a higher payout than what you paid. However; there is the times that your stocks are going to fall and you are going to lose money that is called a bear market. It happens. The one thing that you want to keep in mind is how can you stay in the positive side of the stock market?

Making Long Term Plans

Now you may decide that working on Wall Street and purchasing and selling stock is something that you are going to want to do for a living. Which is fine but how do you know what to set aside for later on in life versus what to put toward your stocks?

This can be so confusing as a new stock investor. However; as a rule of thumb the percentages should be something similar to 60% goes toward a bank account for retirement. Then the 20% for your every expense’s, and 20% put back into stocks. It all depends on your daily living and what you need a month and what your cash out was.  

Never Invest it All

Some stock brokers are all about pushing the envelope. But as a good practice if a stock broker tells you to invest all of your money at one time, do not. You are going to find that by doing that you are going to be taking a huge risk and possibly losing your money. You will never know when that money could come handy especially when life tends to have some unexpected twists and turns.