Beginner?s Guide to Investing
Many people are intimidated by investing, but it can actually be easier than they think. The key is to take small steps toward your investing goals and to keep the process simple.

Investing is the process of giving funds to businesses, Beginner’s Guide to Investing them grow and ultimately earning financial rewards in the form of interest or capital gains. It can be done in a variety of ways, from traditional stocks to alternative assets like real estate or venture-backed companies. Some investors invest in order to grow their wealth, while others may seek to maintain or increase their standard of living in retirement by securing funds through a traditional or Roth IRA or 401(k).

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The first step in getting started with investing is to determine your savings and investment objectives. It is also helpful to establish an emergency fund, a cushion that covers 3-6 months of expenses in case you lose your job or need to address an unexpected expense. Once you have determined how much to save and invest, you should open a taxable or tax-advantaged account (e.g., IRA) and set up automatic investments to help you meet your goals.

Next, consider your investment time horizon and risk tolerance. Younger investors tend to be more interested in growth and long-term wealth accumulation, while those who are closer to retirement usually focus on income generation and asset preservation. As a rule of thumb, it is advisable to avoid high-risk, low-return assets like penny stocks and alternative assets, and instead stick with established, stable businesses that pay regular dividends. A great way to start is by identifying dividend aristocrats, a group of companies that have consistently paid and increased their dividends over a long period of time. Examples include ExxonMobil, the oil and gas giant; Procter & Gamble Co., the consumer products multinational; and Coca-Cola Co., the soda giant.