FIVE FAST TIPS TO GETTING STARTED
To calm any nerves about investment, we secured some top tips from famed (and formidable) financial analyst and expert, Paul Clitheroe.
GET IN A GOOD POSITION BEFORE STARTING ANYTHING “Pay off your credit card debt. Seriously. Right now. Debt at 18 per cent interest is a cancer – so kill it. Then control your cash flow – it’s best to be a saver before you become an investor.”
TAKE THINGS EASY, EARLY “Knowledge is power, so don’t rush. Build up knowledge with free resources like those in the ASX education centre. Read. Study. And keep your wallet closed. Need more specialist information? Subscribe to a publication like Intelligent Investor and learn the ropes.”
IDENTIFY AN AREA TO TARGET “Say it’s healthcare. If you’re new, choose an exchangetraded fund (ETF), which exists in every sector. If there are 20 stocks, the ETF spreads funds across them, which is hard to do alone. Ensure the manager’s track record checks out.”
DON’T WASTE MONEY ON EXPENSIVE BROKERS – GO TO A LOW-FEE ONLINE BROKERAGE “They’ll provide the information needed on your area of interest and where you want to invest. Apply online, and buy a set amount of the ETF stock.”
START OFF WITH WHAT YOU KNOW AND GROW FROM THERE “Once you have expertise in one area, consider selecting a low-cost online broker and picking stocks yourself. You learn more that way. Be sure to learn when you’re young and the stakes are low.”