FINRA Provides Basic Tips for Investors in New Education Podcast
In a recent investor education podcast, FINRA provided five steps to help investors:
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Set and revisit clear financial goals in order to guide their approach to investing (e.g., a goal to save the IRS annual contribution limit in the investors' companies' 401(k)).
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Diversify portfolios across the major asset classes and market segments in order to avoid significant losses as a result of concentration risk.
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Focus on financial security by taking care of day-to-day opportunities that could help build finances over time, such as paying credit card debt on time and in full, and making sure to have an emergency fund.
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Understand the impact of higher interest rates, including how interest rate risk and duration risk may affect fixed-income investments.
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Protect money by being aware of financial scammers and fraudsters, with a particular focus on pitches touting so-called "risk-free" returns in times of market turbulence.