What To Think About Before Investing In Stocks

Growth or Income Investing

Before investing in stocks, you should know what type of investor you are. The two main ideas behind stock investing are growth investing and income investing. Growth investing involves someone investing in stocks now that they expect to grow so they can sell them at some point in the near or distant future for a profit. Conversely, income investors usually seek stocks or other securities that pay out regular dividends or cash that can suffice as income. They then have the choice to either spend or reinvest this income, which can grow wealth even further over time. The type of investments right for an individual usually tie back to their overarching goals. For example, those who may want to retire early and need some form of income before retirement accounts can be accessed may seek more income driven investments, while those who plan to work linger may find investments better suited towards growth investing. By recognizing the type of investor you hope to be, you can narrow down your scope of focus.

Of course, risk is a big factor when it comes to investing. Keep reading for details!