I Asked 4 Investors To Share Their Top Financial Advice — Here’s What They Said

When it comes to investing , everyone’s got different advice. Some say to start right away, while others say to take your time and figure things out before making any major decisions. Some of the more seasoned investors swear by the idea of putting your focus in alternative investments, while others argue that it’s better to keep things simple to the point where it’s almost boring.

Learn More: 5 Ways To Pick Your Next Investment, According to Experts

Find Out: 9 Easy Ways To Grow Your Wealth in 2024

While opinions vary, and you should always take any advice with a grain of salt, it doesn’t hurt to listen to what other people are saying. Several investors were asked to share their top financial tips, and here’s what they said.

Also see Tony Robbins’ six golden rules of investing .

Money mistakes the super wealthy never make - that you might be doing now.

Educate Yourself

You might be excited to start investing, but you should still be mindful about how you go about it, according to Edward Corona, trader and publisher of The Options Oracle . It’s important to make sure you know what you’re doing so you can invest confidently.

“My number one tip for anyone looking to invest — whether you’re brand new or have some experience — is to educate yourself and start with a paper trading account before risking any real money. Seriously, I can’t stress this enough,” Corona said.

According to Corona, it’s better for you to take some time to learn about the markets to avoid mistakes.

“When you’re just getting started, the temptation to dive in headfirst is strong, but taking the time to understand the markets, learn about strategies and practice in a no-risk environment can save you from costly mistakes down the road,” Corona explained. “This isn’t just for beginners, either — it applies to seasoned investors who want to try out a new approach or strategy. I encourage anyone trying something new to use a paper account first to see how it performs under real market conditions without putting their hard-earned capital at risk.”

For You: I’m a Financial Advisor: 6 Steps To Take If You Have $1,000 To Invest

Keep Things Simple

Your investing journey is going to be uniquely your own, but it’s important to keep things simple, according to Adam Nash, former CEO of Wealthfront, personal finance lecturer at Stanford, and co-founder and current CEO of Daffy .

“Good investing is boring, otherwise, you’re doing it wrong. No one wants to be average, but with investing, ‘average’ is actually well above average. You will beat most mutual funds, hedge funds and your peers with simple, low-cost index funds,” he said.

Nash’s four keys to good investing are keep saving, stay diversified, keep fees low and minimize taxes.

Stay Conservative

Your risk tolerance is probably going to change based on factors like your age and financial situation. But even so, it doesn’t hurt to make conservative assumptions. It might, in fact, even be your best bet

“Always make conservative assumptions,” said Paul Gabrail, an investor and the host and founder of Everything Money . “Yes, the market historically has done 9%-10% annualized returns. Assume 7.5% or 8%. Assume you live longer than you expect to live. If you include these margins of safety in your investment strategy, it keeps it simple and realistic.”

Diversify (and Seek Professional Advice)

Last but not least, diversify your portfolio. A diversified portfolio is, generally speaking, a lower-risk portfolio — and that spells good news for your future finances.

“My tip for anyone looking to increase their returns from investing is diversify your portfolio,” said Satayan Mahajan, financial expert and CEO of Datalign Advisory . “Traditional investments, like stocks and mutual funds, are a great way to get started, but they are often influenced by market trends.”

While these types of investments can still make up the bulk of your portfolio, Mahajan suggested adding a few alternative assets — like private equity or real estate — to hedge against market instability and inflation.

But before you do any of this, he also suggested seeking financial advice from a professional.

“Working with an advisor can increase the average portfolio investment returns assets by up to 4%, compared to self-managed portfolios,” he said. “Advisors can help you navigate risk and develop a diversification strategy that meets your specific interests and financial goals, regardless of whether you’re new to the world of investing.”

Investing Is a Journey for the Long Term

Investing isn’t something you’re likely to do just once and make bank. It’s a long-term strategy to build financial stability and, depending on how you go about it, real wealth. You can start however you’d like, but educate yourself first.

You may also want to keep things simple in the beginning — or even for the long haul. You can always make changes as you become more confident, but try to make those changes with conservative assumptions in mind.

This article originally appeared on GOBankingRates.com : I Asked 4 Investors To Share Their Top Financial Advice — Here’s What They Said