Many Americans make financial New Year’s resolutions, including paying down debt and saving more money. To grow your wealth, consider following these three investing tips from self-made millionaires:
Keep it simple by investing in low-cost index funds, such as those that track the S&P 500. These funds provide diversity and can help you achieve long-term growth without sacrificing returns to a fund manager’s fees.
Start early and take advantage of compound interest by starting to invest as soon as possible. Automating your investments through automatic contributions or setting up automatic increases in contributions can help you build the habit of investing.
Learn how to spot red flags when choosing a financial advisor. Be wary of advisors who encourage you to make bad decisions, such as investing in annuities that aren’t suitable for your age. Look for advisors who are transparent about their fees and where your money is being invested. Additionally, educate yourself on basic investing concepts to identify potential red flags.
