Investing isn't as complicated as it seems. But getting started can be really overwhelming, even when you know the basic rules. To make it less scary, try a mock portfolio before diving into the real thing.
Photo by Chris Potter
Over at LearnVest, financial advisor Brad Klontz says a mock investment portfolio can help people ease into investing. First, pick some investments — stocks, index funds, target date funds — whatever you'd like to buy in real life. Then, keep track of those assets over several months.
"Ideally, [this exercise] will teach you the value of a passive approach to investing," Klontz says, referring to a low-maintenance strategy that doesn't favour much tinkering with your investments. "The sooner you realise that you can't consistently predict the market, the less [real] money you'll lose."
Really, the idea isn't to see how well you do. You simply want to see how the market works so you can get comfortable with it. Knowing what you're dealing with can make the whole thing less intimidating.
For more detail, check out the full post.