- WOLF Financial
- The only investing strategy you need
The only investing strategy you need
5 Steps to Long-Term Investing Success
Welcome to the WOLF Financial Newsletter.
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Everyone starts out as a beginner at some point.
If you're a beginner investor, figuring out how to get started can be overwhelming AND complicated.
But it shouldn't be that way.
Here's the 𝗼𝗻𝗹𝘆 long-term investing strategy you need to be a successful investor:
It's called dollar-cost averaging.
And it's still my go-to strategy today.
First, let’s discuss what (DCA) dollar-cost averaging is:
𝘋𝘰𝘭𝘭𝘢𝘳-𝘤𝘰𝘴𝘵 𝘢𝘷𝘦𝘳𝘢𝘨𝘪𝘯𝘨 (𝘋𝘊𝘈) 𝘪𝘴 𝘢𝘯 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘺 𝘵𝘩𝘢𝘵 𝘪𝘯𝘷𝘰𝘭𝘷𝘦𝘴 𝘳𝘦𝘨𝘶𝘭𝘢𝘳𝘭𝘺 𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨 𝘢 𝘧𝘪𝘹𝘦𝘥 𝘢𝘮𝘰𝘶𝘯𝘵 𝘰𝘧 𝘮𝘰𝘯𝘦𝘺 𝘢𝘵 𝘴𝘤𝘩𝘦𝘥𝘶𝘭𝘦𝘥 𝘪𝘯𝘵𝘦𝘳𝘷𝘢𝘭𝘴, 𝘳𝘦𝘨𝘢𝘳𝘥𝘭𝘦𝘴𝘴 𝘰𝘧 𝘵𝘩𝘦 𝘢𝘴𝘴𝘦𝘵'𝘴 𝘱𝘳𝘪𝘤𝘦.
Essentially, it’s a passive, set-it-and-forget type of approach to investing.
It encourages discipline and simplifies the long-term investing approach.
It takes the guesswork out about when to invest, what to invest in, and when to sell.
DCA automates it and does everything for you.
Want to know exactly HOW to do it?
Here's a simple, 5-step process to follow:
𝟭) 𝗢𝗽𝗲𝗻 𝗮𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗔𝗰𝗰𝗼𝘂𝗻𝘁: You can set this up on your own or with an advisor through a brokerage or financial institution. Depending on your goals, this can either be a regular brokerage account or a retirement account.
𝟮) 𝗖𝗵𝗼𝗼𝘀𝗲 𝗬𝗼𝘂𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁: Now that your account is opened and ready for funding, it's time to select the specific asset or assets you want to invest in. You can choose individual stocks, mutual funds, or ETFs.
If you're a beginner, here are three ETFs I’d recommend picking for your portfolio.
You can pick one or all three.
𝟯) 𝗦𝗲𝘁 𝗬𝗼𝘂𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗦𝗰𝗵𝗲𝗱𝘂𝗹𝗲: Decide how often you want to invest. For example, you might choose to invest $500 every month.
𝟰) 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗲 𝗬𝗼𝘂𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀: Link your bank account to your investment account so the money gets automatically drafted into your investment account each month. Automating your investments ensures you stick to your schedule.
𝟱) 𝗠𝗼𝗻𝗶𝘁𝗼𝗿 𝗬𝗼𝘂𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀: Even though DCA is a more passive strategy, it's important to periodically review your investments. Ensure they align with your long-term goals and make adjustments as needed.
DCA is a foolproof way to become a successful investor over the long run because it:
• Helps you avoid mistiming the market.
• Takes the emotion completely out of it.
• Builds the discipline needed to be successful.
And there you have it!
The 𝗼𝗻𝗹𝘆 long-term investing strategy you need to become a successful investor.
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