Your Five Step Guide to Starting Your Investment Account

1. Know your risk tolerance. Risk tolerance sounds like a scary concept, but it’s all about knowing yourself, your preferences and your long-term life goals. Are you in your 20s and plan on working until you’re 65? That’s great! You’ve got time on your side and can afford to take more risks.
   
   On the other hand, if you’re in your 50s or 60s and have only five to 10 years until retirement, you might want to invest more conservatively.
2. Learn the difference between stocks, bonds and mutual funds. Say what? If stock market lingo sounds like ancient Greek, take a few moments to learn the key phrases. Knowing what is being said will help take some of the mystery out of the investment world.
3. Decide how much you can afford to invest. It’s all well and good to say you’ll save half of your paycheck, but will that leave you hurting day-to-day? Sit down and look at what you’re bringing in and what you have going out each month. Cut back if there are areas where you feel you’re overspending and decide on a good number to put away each payday. Then try to grow this amount over time.
   
   If you have a lump sum saved up, you can start your investment account with some of those funds. Experts recommend having at least six months of expenses in a cash account – like a savings or money market. Anything over that can be put to work by investing it.
4. Define your goals and timeframe. Do you know when you’re going to need to access the money? Most likely you’ll withdraw money for retirement, but take into account any withdrawals you can see coming before then. The amount of time you have before you need the money will determine if you can invest in higher-return, but riskier stocks, or need a more balanced approach.
5. Find a knowledgeable professional to join your team. There is so much involved in investing that it’s difficult to know it all. But professionals who spend their days in the finance world can help you make decisions about your money, and find the appropriate investments for your unique situation. Seek out someone you trust, who is licensed and has a well-rounded knowledge of the investing world.

It’s OK to reach for your financial goals – and investing can help you get there. While it may seem scary, starting your investing accounts now can pay off infinitely more than trying to play catch-up as you near retirement.

As a member, you have access to the financial advisors at Arizona Financial Investment Solutions, available through through Osaic Institutions Inc.¹ Call 602-683-1000 to make an appointment today!

¹ Investment and insurance products and services are offered through Osaic Institutions Inc. Arizona Financial Investment Solutions is a trade name of Arizona Financial Credit Union. Osaic Institutions and Arizona Financial Credit Union are not affiliated. Products and services made available through Osaic Institutions are not insured by the NCUA or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any credit union or credit union affiliate. These products are subject to investment risk, including the possible loss of value.