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Investing: A Comprehensive Guide by O1ne Mortgage

Welcome to O1ne Mortgage’s guide on investing. If you have any mortgage-related needs, feel free to call us at 213-732-3074. We’re here to help you navigate your financial journey with confidence.

What Is Investing?

Investing involves purchasing assets with the aim of earning money through their appreciation over time. This can help you achieve your financial goals and grow your wealth. If you’re new to investing, it might seem overwhelming, but understanding the basics can set you on the right path.

How Does Investing Work?

When you invest, you buy assets hoping they will increase in value. You can either hold onto these assets or sell them when they appreciate. Contrary to the high-stakes image of fast-paced stock trading, a successful investment strategy often involves a diverse mix of assets and a long-term perspective.

Investing vs. Saving

Both saving and investing involve setting aside money for the future, but they differ in terms of risk. Investing typically involves more risk but offers the potential for higher returns, making it suitable for long-term goals like retirement. Savings, on the other hand, are better for short-term needs and emergency funds.

Types of Investments

There are several types of investments you can consider:

• Stocks: Shares of ownership in a publicly traded company, known for their potential high returns and volatility.
• Bonds: Loans from an investor to a borrower, usually offering lower risk and fixed returns.
• Mutual Funds: Pooled investments managed by professionals, investing in a variety of assets.
• ETFs: Similar to mutual funds but traded on stock exchanges.

How to Start Investing

Ready to start investing? Follow these steps:

1. Decide Your Goals: Determine what you’re investing for and how much risk you’re willing to take.
2. Choose an Account Type: Select between tax-advantaged accounts like 401(k)s and IRAs, or standard brokerage accounts.
3. Open Your Account: Set up your investment account through your workplace or a brokerage.
4. Fund Your Account: Decide how much to invest, aiming for around 15% of your pretax income.
5. Buy Investments: Diversify your portfolio by investing in mutual funds, ETFs, or individual stocks and bonds.

Why Should You Invest?

Investing is crucial for growing your money over time, helping you reach long-term goals like retirement or education funding. While savings accounts offer safety, investing provides the potential for higher returns, helping you outpace inflation and build wealth through dividends and compound interest.

Make a Plan for Your Financial Future

Investing through a 401(k) or IRA can be a solid strategy for retirement. For personalized financial planning, consider consulting a financial advisor. They can help you create a tailored plan to meet your unique needs and goals.

For any mortgage-related inquiries, don’t hesitate to call O1ne Mortgage at 213-732-3074. We’re here to support you in achieving your financial aspirations.

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