To calm any nerves about in­vest­ment, we se­cured some top tips from famed (and for­mi­da­ble) fi­nan­cial an­a­lyst and ex­pert, Paul Clitheroe.

GQ (Australia) - - GQ INC. - EX­PERT AD­VICE


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.”

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