The allure of higher returns has many young savers looking to break into the investment scene.
"It's funny because you have alot of people that come to us early on and that number's getting bigger and bigger every year. The people that come to us in their 20's and 30's saying I don't know what to do, help me start," said Michael John Byers, with Lone Star Registered Investment Advisors.
For those needing direction, local financial experts agree the best way to get started is setting aside a certain amount each month to invest. "Whether it's every paycheck, every month where you've got it coming out automatic and consistently, that is the biggest thing to do it on a consistent basis," said Byers.
Getting involved in a 401K or IRA account, one of the easiest ways to build consistency, like clockwork. "The 401K is payroll deducted. So you don't get your hands on the money before you spend it. And you get used to living without it and over time it accumulates," said Joe Scarborough, a financial advisor with Edward Jones.
Scarborough says part of the process for beginners is identifying why you want to invest, if you're goals are short or long-term, and how much you can afford to risk. Some of that conversation means putting to rest common fears and misconceptions.
"Thinking that you're going to get a hot tip and make alot of money is one of them that I would caution against. And the other one is selling when the market is down or news is real bad. That's not the time you want to sell," said Scarborough.
To that end, advisors say to trust the market, and more importantly, your own instincts. "The history that we have with the market, this is nothing new. We've had these concerns or concerns like them for years and years and years," said Scarborough. Byers recommends to "look at companies you're familiar with. Sometimes the companies that you know are alot of times some of the best ones to invest in and do it on a long-term basis."
They say one thing is certain, delaying your start delays putting your money to work for you. Young investors get the value of time on their side, which makes their financial future a little brighter.
