RAPID CITY, S.D. — Over the last decade, investing has become easier for everyday Americans to access. This is partly due to investing apps and websites, where people don’t need someone else to handle their accounts. However, for many, the world of stocks, bonds, and funds can still feel confusing, or maybe even scary at times.

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That’s where financial advisors like Saeed Sulaiman, owner of
Shield Financial
in Rapid City, step in. “The first step is to have a goal,” Sulaiman says. “You have to know what the money is going to do for you.”

Before choosing where your money will go, Sulaiman says you should have an end goal in mind. Whether it’s for a car, a house, or more money into your retirement fund, having a clear purpose helps guide your financial decisions.

One of the most common mistakes first-time investors make is putting all their money into one stock.

Sulaiman says, “If you buy one company with let’s say the shares are $300, and you buy one share, well, that’s all you have now, is one share of one company. So if that company has struggles, then you’re going to struggle too.” He continues, “But, when you buy one share of an ETF [Exchange Traded Funds] or a mutual fund, you buy a [small] piece of 500 companies… So even though you have only bought a small amount, you still are exposed to all of them, rather than just being stuck with one, so to speak.”

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Basically, diversification is key to long-term growth according to Sulaiman.

While the markets’ ups or downs can be stressful, Sulaiman says that successful investing is actually pretty boring. “We’re not worried about how this company does next quarter,” he says. “That’s not important to me. It’s important how they do over a long period of time. So boring is good.”

He also recommends that investors do not check their accounts obsessively, especially if they’re investing for retirement or other long-term goals. TAny changes in the markets have the potential of stressing you out and may make you want to sell too early.

• Start Small – You don’t have to wait until thousands saved up, even $100 can get you started.
• Automate Your Contributions – Set up monthly investments, this is known as dollar-cost averaging and a lot of financial advisors recommend it.
• Use Online Tools – Consider using apps like Robinhood, Vanguard, or Charles Schwab. Or you can use websites like
  Investopedia
  or
  YouTube
  and learn as you go.
• Understand Risk – Investing is a spectrum, you can go conservative (bonds, CDs) or aggressive (stocks, penny stocks). Just figure out what you are most comfortable with.
• Avoid Debt First – If you’re carrying high-interest debt, consider paying that first before starting to invest.

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If your employer offers a 401(k), Sulaiman says that’s the easiest way to start investing. “It’s literally free money… Every time you handed me a $10 bill, I [would] give you a $20 bill. That’s what a 401(k) is,” he explains.

Another great option, especially for younger investors, is a Roth IRA (Individual Retirement Accounts). Since the money is taxed before going in, all growth and withdrawals will be tax-free later on when you take it out for retirement.

Sulaiman also often hears from people who feel they’ve missed their chance. “The best time to plant a tree was 20 years ago… The second-best time is now,” he says. Whether you’re 18 or 58, the key is getting started and finding an approach that works with your lifestyle, goals, and tolerance for risk.

In the end, Sulaiman recommends starting simple, for example investing in an index fund that mirrors the S&P 500.

It can be unnerving the first couple of times you invest, but in the end is it worth it. “Once you invest a couple times, it feels a little bit more familiar, a little less scary, a little bit more of ‘Oh, okay, I know what’s actually happening here.’ And so then you can actually start making bigger moves,” Sulaiman says.