In a volatile stock market, it can be difficult to create a profitable portfolio. Financial adviser and entrepreneur, Aaron Maguire stopped by KDLT News Today to offer some advice.
Maguire says before deciding which kinds of stock to add to your portfolio, you should consider how far along you are in the retirement process. Younger people should consider creating a “nest egg,” Maguire says.
Defining your financial goals are the next step, according to Maguire. He suggests deciding how much income you’ll need after retirement to use as a base for how much you plan to save.
The easiest way to start saving for retirement, according to Maguire, is to take advantage of your employer’s 401(k) plan. These 401(k) contributions are often taken directly out of your paycheck before taxes.
Maguire says he advises his clients to pay off their debt, like students loans first, before investing in the stock market. He also says having cash in the bank is important.
“One of the first goals I’ll always say is you know, build up some cash in your bank account first and then you can start to invest after that because you never know what’s gonna happen,” says Maguire.
Determining your risk tolerance is also an important step when planning your investments.
“If you had $10,000 that turned into $5,000, would that be okay to you?” says Maguire.
Keep your portfolio diverse can help balance risk, especially in an unsteady market, according to Maguire.
Watch the video above for more of Aaron Maguire’s financial advice.
Aaron Maguire currently works at Security National Bank in Sioux Falls. He also invented Portion Clips and has been featured on QVC.