If you have not started investing, remember, it is never too late to start investing. When you are new to the investment world or are just starting out, you must build a solid base of strong investment strategies. This will help you save enough by the time you retire.

Building wealth starts with sound financial advice. You must consider your investment timeframe and long-term goals before making a decision. When it comes to investing, you need to balance your savings and retirement funds together.

Start with 401 (k)
As soon as you land your first job, start contributing to your 401(k) plan. Match your employer’s contribution to achieve 100% savings. As and when you get a raise, your savings will increase as well. Ensure that your plan has the auto-escalation feature, which will raise your contribution to match the plan and leave you with adequate savings.

Roll over your 401(k)
In the event of a job change or any other change, continue with your 401(k) instead of cashing out. Roll your 401(k) into IRA or change to your new employer’s plan. If you cash out of 401(k) prematurely, you will be liable for taxes and penalties, leaving you with nothing in hand. On the contrary, if you roll over your 401(k), the money keeps growing as you approach retirement.

Invest in ETFs
ETFs (exchange-traded funds) are a good bet when starting out. They are inexpensive compared to mutual funds and they offer tax benefits. There are many types of ETFs to choose from, such as high-yield funds, dividend growth, and preferred stocks.

Diversify your risks
When you are starting out as an investor, you cannot afford to take risks too early in your journey. Diversify your portfolio in such a way that even if you face losses due to a badly performing stock, your portfolio remains secured. Do not panic when the markets fluctuate, you can remain invested for a long term.

Set your limits
Track your investments periodically. Understand the performance patterns of your investments. Do not go overboard with expenses. Set boundaries in terms of how much you can invest and stick to the plan.

Opt for low-cost investments
While charting your portfolio, pick a mix of low-cost investments as well. This will help you save dollars for your long-term investment plan. Vanguard Funds are the best low-cost funds. High costs can affect savings over a period of time.

Consider the taxes
When you are investing, do consider taxes. However, not all investments are taxed. Invest in such a way that your tax liability is minimized.

Investments need not be confusing or difficult when starting out. A little planning and knowledge will help you to make informed decisions and earn high returns.