Kavan Choksi- How Can You Build Long-Term Wealth With Stock Investing in The USA?

0
24
Kavan Choksi

Share or stock trading done correctly helps you to establish long-term wealth. When you are investing in stocks for the first time, you need to take into consideration your investing approach. There are some investors who prefer individual stocks, whereas others play it safe with a less active method.

It would help if you asked yourself some salient questions as to whether you are analytical as a person and enjoy crunching numbers, whether you do not like doing a lot of homework and are not keen on Math, and whether you want to research or not. Irrespective of what your answer is, you are always a good candidate for investing in the stock market and earning good rewards. Now, the question is, how should you choose the right stocks?

Kavan Choksiknow the different ways to invest in stocks

Business expert and financial management specialist Kavan Choksi says that there are different ways for you to invest in the stock market. For instance, if you have the time and the inclination to research stocks regularly, you can invest successfully in individual stocks. However, it would help if you were keen to examine the earning reports after every quarter and like doing mathematical calculations on a regular basis. In short, individual stocks are perfect for active investors.

Index funds if you are not keen on extensive research

With the addition of individual stocks, you can opt for index funds investments. These funds track the performance of an index like the S&P500. These funds are cheaper, and they are guaranteed virtually to meet their underlying index performance in the long term. With time, it has been observed that the S&P500 has generated approximately 10% returns annually, and this means that one can establish substantial wealth with time with such a performance metric.

The robo-advisor can help you with your investments

In the last few years, the robo advisor has been guiding investor with share or stock trading. It is a brokerage that invests the money on behalf of the investor in the portfolio of index funds appropriate for their age, financial goals and risk tolerance. Besides the above, the Robo-advisor can also choose the investments and optimize tax efficiencies to make the necessary changes with time.

How much should one invest in the stock market?

Business analysts state that the stock market is not suited for investors who need their money in the next five years. The market will rise with the passage of time, and according to business expert Kavan Choksi, in the short term, the stock market is tricky to predict. For instance, there is a 20% drop in the stock market every year, and this is not an unusual phenomenon. In 2020, during the time of the Corona virus pandemic, there was a plunge in the market by over 40%, and just in a couple of months, it rebounded to an all-time high. As you become older, the stock market becomes a less desirable place for investments. In order to get the best returns out of share trading, it is prudent to consult a financial advisor to help you choose the best stocks suited to your age and financial goals for long-term wealth building in the future.

LEAVE A REPLY

Please enter your comment!
Please enter your name here