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Aug 21, 2021
If you want to begin investing, and you have a healthy emergency fund that can cover several months of expenses, the first thing to do is know your time horizon, said New York-based CFP Tom Henske.
“If you are the type of person that when the market goes down 2%, you feel queasy, maybe that might change the investment that you are going to buy,” Henske said.
Making sure your portfolio is diversified is also important.
For smaller amounts of money, Henske would either do an index fund or time-horizon fund, which invests based on when you will need the money — if it is a longer time horizon, you can be more aggressive in the beginning since you have time to recover if the market dips.
