If you’re unsure of what to do with your investments, you’re not alone. In today’s volatile market, it’s not uncommon for investors to feel anxious about their next move, according to Ryan Jacobs, financial advisor and founder and managing partner of Jacobs Investment Management, LLC.
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Whether you’re new to investing or reconsidering, here are five pieces of advice from experts to help you make the right decisions when it comes to your portfolio.
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Hire an Investment Advisor
Jacobs said the complexities of the financial world can be overwhelming, but an investment advisor can help.
“Investment advisors act as guides in the financial industry, providing customized advice that can make a big difference in achieving long-term success,” he said. “Their expertise can help you mitigate risks and identify opportunities you may not be aware of.”
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Engage in self-learning
For those who prefer a hands-on approach, Jacobs said self-study can be very rewarding, as the internet is packed with resources, from financial blogs and podcasts to online courses and webinars.
“Education is one of the best investments you can make,” he says. “The more you understand about the markets and how they work, the better equipped you will be to manage your investments effectively.”
Take an investment class
If you want a structured approach to learning, Jacobs recommends taking an investing class.
“Often offered at community colleges, universities and online platforms, these courses cover everything from basic investment principles to advanced strategies,” he said. “Taking an investment class will give you a solid foundation and clear up many misconceptions about investing. It’s a great way to develop the confidence and ability to manage your own portfolio.”
Dollar-cost averaging into index funds
According to Jacobs, dollar-cost averaging into index funds is one of the simplest, yet most effective strategies. He means investing a set amount of money into index funds on a regular basis, regardless of market conditions. Plus, over time, he says, this strategy can reduce the impact of volatility and lower your average cost per share.
“Dollar-cost averaging is a disciplined approach that helps investors stick to an investment plan,” Jacobs says. “It takes the emotional aspect out of investing and allows you to build a portfolio consistently, even during market downturns.”
Consider your risk tolerance
Understanding your risk tolerance — how much fluctuation in investment returns you can tolerate — is crucial when making any investment decision, says Jacobs, and it depends on your financial situation, investment goals, and psychological tolerance for risk.
“Take the time to assess how much risk you can tolerate and make sure your investment strategy is aligned with that level,” he advises. “That way, you’ll stay on the right path even as markets fluctuate.”
Final thoughts
Jacobs said that investing can feel scary, especially during uncertain times, but by taking the steps mentioned above, you can be more confident and successful as you navigate financial markets.
“Remember,” he said, “the goal is to create a plan that works for you and helps you achieve your long-term financial goals.”
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This article originally appeared on GOBankingRates.com: I’m a Financial Advisor: Advice for when you don’t know what to do with your investments
