Making Money Moves

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What you don’t want is to invest recklessly or ignore it altogether. The world of investments is complicated and feels inaccessible, which is why so many people just don’t do it. But saving all your disposable income and stashing it in the bank loses money. Your money is worth less and less every year because of inflation. If you’re only saving and not investing, you’re missing opportunities.

“The reality is, if you don’t invest, you’re not going to make any money from your money,” Di Virgilio said.

If you’re looking to start investing but don’t have much money, look into an automated investment portfolio. Companies like Betterment, Robinhood and Charles Schwab make it incredibly easy to invest, using Nobel Prize-winning science to invest your money automatically.

While it takes time to see the fruits of your investment, it’s important not to give up on your strategy when the going gets tough. Expect markets to naturally rise and fall, Di Virgilio said. Don’t throw out your investment strategy when the market’s down, or you could lose even more. Practice patience.

“Wise investing is slow,” Di Virgilio said. “It’s brick by brick. Your money builds itself over time.”

story by Rebecca Santana photos by Carolina Watlington

People run for the hills when they think about investments. Movies paint the picture of million dollar stocks and bloodthirsty business sharks on Wall Street. It’s much less daunting than one might think. The co-founder of Chacon Diaz & Di Virgilio, a local fiduciary wealth management firm, James Di Virgilio, said that anyone can invest but some ways are smarter than others.

First and foremost, good investing is based on science, statistics and patterns in human behavior. Unless you’re planning on becoming an expert on this stuff, you should let a professional handle your investments. There will always be better options than DIY investing, Di Virgilio said.

So how much should you be investing? Di Virgilio said the short answer is invest 10% of your gross income toward retirement, whatever that may be. This assumes you have a steady income.

“If you don’t have any real income, don’t feel bad for not investing,” Di Virgilio said. “But as soon as you have your first ‘real’ job, it’s time to start thinking about financial planning.” Money management is no simple task, but you can set yourself up for success if you take the time to do a little research and speak to a professional. Investment isn’t all about big business or making crazy amounts of money, it’s about planning for your future and supporting ideas you believe in.

“[You] invest in people,” Di Virgiolio said. “You’re primarily betting that their ideas will change the future for the better.” O&B

The first step for anyone who wants to start investing is to see a certified financial planner. The large majority of Americans don’t have good financial habits, Di Virgilio said. This includes your parents, so asking them for financial advice might not be in your best interest.

A certified financial planner will help you budget according to your personal income and expenses, helping you understand how much money you can set aside for investment. If you have debt, which a majority of college graduates do, it’s important that you pay down your debts while investing. Di Virgilio recommends devoting 10% of your gross income to pay off your debts and 10% for investing. The other 80% is yours to spend however you choose.