Wealth Management
Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.
If you’re new to investing, a good place to start managing your wealth is to consult your tax preparer or accountant. They may be able to provide you with financial planning services. They may also be able to refer you to somebody who can.
There are three types of professional wealth management services you can use.
1.    A full service stock broker – A good stock broker is one who understands investing and who has the integrity to settle conflicts of interest in the client’s favour. Good stock brokers can provide an effective and economical way to manage your investments. But if you are going to use a full-service broker, take the time to find a broker you can trust.
2.    A discount stock broker – A discount stock broker will simply carry out buy and sell orders for their clients, and charge lower commission rates than full-service brokers. You pay even lower commissions if you trade stocks online, instead of placing orders over the phone.
3.    Portfolio managers – A portfolio manager is someone who fully manages your wealth portfolio and has a fiduciary responsibility to make sound investment decisions on your behalf. Portfolio managers are more stringently regulated than full-service or discount brokers.
easy investments for beginners

Looking for easy investments for beginners? Start with a well-diversified portfolio holding high-quality stocks.

If you ask investors who have a few decades of successful investing behind them about easy investments for beginners, few, if any, will credit their success to any one investment or investing technique. Instead, most will talk about the value of everyday qualities like patience, consistency and a healthy sense of skepticism—in short, the kind of qualities that bring success in all aspects of life, not just investing.

Investing success comes from making more right decisions than wrong ones over a long period of time.


The worry-free retirement plan

This is how you make your financial plans work best, before and after retirement. Pat McKeough has poured four decades of experience into this comprehensive new report, “Wealth Management and Retirement Planning”. It’s free to download now.

Read this NEW free report >>


Stock market research tips for picking easy investments for beginners

Stock investing for beginners can be much more profitable with these stock market research tips that will help you cut risk and increase profits in your stock market portfolio. We’ve long recommended these tips:

  • Look beyond financial indicators
  • Think like a portfolio manager
  • Hold a reasonable portion of your portfolio in U.S. stocks
  • Give your investments time to pay off

Easy investments for beginners: Approach all investments with a healthy sense of skepticism

This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.

Consistency is crucial

You can’t succeed by applying our three-part formula (invest mainly in well-established companies; spread your money out across most if not all of the five main economic sectors and downplay or avoid stocks in the broker/media limelight) three years out of four. If you try to do that, you run a serious risk of abandoning the philosophy when risk is at a peak. That’s when our formula serves you best, and failing to adhere to a sound investing approach can do the greatest harm to your net worth.


Advice for beginners—watch out for on-line “practice accounts”

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Losing patience can cause you to sell your best choices right before a big rise

All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)

If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.

Easy investments for beginners: Focusing on including stocks with hidden or little-noticed assets

These are assets that are easy to overlook, since their full value rarely appears on a company’s financial statements.

These assets include long-time real estate holdings that are worth much more than the balance-sheet value. Under-used brand names are another good example. Another key hidden asset is research spending. Companies write off their research outlays in the year in which they spend the money, but benefits (if any) such as new or better products may only materialize years in the future.

Seek dividends in your investments

If you’re new to investing, one tip we share often is to invest in companies that have been paying a dividend for 5 or more years. Dividends are typically cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically these dividends are paid quarterly, although they may be paid annually or even monthly as well. Canadian citizens who own shares in Canadian stocks that pay dividends will also benefit from a special tax break they may be eligible to receive.

Keep your portfolio well-balanced among the five economic sectors

Remember to spread your portfolio out across most if not all of the five main economic sectors: Resources; Manufacturing; Finance; Utilities; and Consumer. That way, you avoid overloading yourself with stocks that are about to slump simply because of industry conditions or changes in investor fashion.

By diversifying across the sectors, you also increase your chances of stumbling upon a market superstar—a stock that does two to three or more times better than the market average. These stocks come along every year. By nature, their appearance is unpredictable; if you could routinely spot them ahead of time, you’d quickly acquire a large proportion of all the money in the world, but nobody ever does that.

Have you used any of these tips for easy investments for beginners? Do you have additional tips to add? Share your thoughts with us in the comments.

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Wealth Management Post Archives

Wealth building strategies for long-term investing success

Wealth building strategies for long-term investing success

Here are some wealth building strategies that will help boost your long-term portfolio gains
Long-term wealth building strategies aren’t built by aiming for outsized returns. They are built over time, and most importantly, by learning how not to repeat the market mistakes of the past.
Let’s take… Read More

Are you making the best investing decisions?

Are you making the best investing decisions?

Investing decisions should be well thought out and based on these sound investing strategies

It’s essential to avoid letting an investment opinion turn into a fixed idea about the future. Instead, keep an open mind. Nobody can consistently predict what stocks will do… Read More

Trading with a discount broker could actually cost you money

Trading with a discount broker could actually cost you money

Trading online through a discount broker, rather than with a full-service broker, is now the preferred option for many investors—but it has risks.

The main advantage of switching to a discount stock broker is lower commissions. And commission rates can be even cheaper if you… Read More