Business

Investing for Beginners in 2024

Published

8 months ago

February 27, 2024

In 2024, investing as a beginner may appear both promising and daunting. The world of finance is rife with opportunities, yet navigating it requires a compass of knowledge and a steady hand. In this era of ever-evolving markets, it’s essential for novice investors to embark on their financial voyage well-prepared, armed with insights from those who have navigated these waters successfully.

“In the ever-changing landscape of investing, knowledge is your North Star,” says Asim Hafeez, an early growth and real estate investor, and GP/LP in over 60 companies, “begin with a solid foundation of information, and the path to financial success will become clearer.”

Identifying key considerations

For many novice investors, the initial challenge lies in the sheer lack of information. The world of investments can be overwhelming, with numerous opportunities vying for attention.

Hafeez acknowledges this hurdle and advises newcomers to pause and gather knowledge before diving in. Instead of succumbing to the allure of every new investment idea, he suggests a deliberate and informed approach, which entails acquiring a foundational understanding of investing and developing a discerning eye for opportunities that align with one’s financial goals.

“Another critical consideration,” highlights Hafeez, “is the need to clarify investment objectives.” Before selecting specific investments, you need to define your financial aspirations clearly. Whether the goal is long-term wealth accumulation, generating regular monthly cash flow, or securing a comfortable retirement, having a well-defined objective helps choose the most appropriate investment vehicles.

Furthermore, Hafeez emphasizes the importance of avoiding “shiny object syndrome.” This refers to the temptation to chase after novel and high-return investment opportunities without a clear strategy.

“Beginner investors must remain steadfast in their commitment to their established investment goals,” Hafeez advises. “That way, they can evaluate potential investments with focus and ensure that each opportunity aligns with their unique financial objectives.” This disciplined approach guards against making impulsive and ill-informed decisions, promoting a more prudent and profitable investment journey.

Recommended investment for new investors

Investing in assets that provide a steady cash flow is a cornerstone of a successful investment strategy. Consider the option of residential real estate, particularly multi-family properties. These properties can be acquired with a modest down payment, usually ranging from three to five percent of the property’s value.

The most attractive aspect of real estate investing is the potential for a reliable monthly cash flow, which often increases over time due to inflation-driven rent adjustments. Moreover, as the property appreciates in value, your investment portfolio continues to grow.

“Investing in a multi-family property can create a solid foundation for financial security,” Hafeez says. “It combines steady cash flow with long-term wealth-building through property appreciation.”

Maximizing contributions to a Roth IRA

Another smart move for new investors is to leverage tax-advantaged accounts like the Roth IRA. With a current annual contribution limit of $7,000 (subject to potential future increases), a Roth IRA allows tax-free withdrawals during retirement.

To make the most of your Roth IRA, Hafeez advises allocating your contributions to low-cost index funds, such as those offered by Vanguard, which are known for their minimal management fees and diversification benefits. By consistently contributing to an S&P 500 index fund within the Roth IRA, you can allow your wealth to grow tax-free over time.

“Maxing out your Roth IRA contributions annually is a prudent move,” Hafeez emphasizes. “It ensures that your investments are not only diversified but also shielded from future tax implications, providing financial security in retirement.”

Diversification and risk management

Diversification involves spreading your investments across different asset classes to reduce risk. By diversifying, you can potentially enhance returns while safeguarding your portfolio from the negative impact of a poorly performing asset.

Hafeez advises beginners to adopt a multifaceted approach to diversification, considering various asset classes, industries, and geographic regions. This strategy minimizes your portfolio’s vulnerability to the performance of a single asset or sector, ensuring greater stability.

However, balancing risk and return is equally crucial. Your willingness to take on risk should align with your financial goals, time horizon, and risk tolerance, so assess your risk appetite and tailor your investment strategy accordingly.

While high-risk investments may promise higher returns, they can also bring higher volatility and may not be suitable for long-term objectives like retirement planning. “Finding the right balance between high and low-risk investments based on your unique financial circumstances is crucial,” Hafeez says.

Your investment preferences are another essential consideration. Some investors prioritize assets that generate a steady cash flow, while others seek investments with significant potential for capital appreciation.

“There’s no one-size-fits-all solution,” Hafeez explains. “Your investment choices should align with your financial goals, risk tolerance, and personal preferences. Ultimately, the allocation of your investments will depend on your risk appetite and your personal preferences. What’s most important is that your investment strategy aligns with your long-term financial goals.”

Embarking on an investment journey as a novice can seem daunting, but with the proper guidance, it can also be incredibly rewarding. As Hafeez wisely notes, knowledge is the key that unlocks financial success. By first developing a solid foundation of investing fundamentals, clarifying your goals and risk tolerance, and remaining focused despite distractions, you can equip yourself to make the best investment decisions in 2024.

— Asim Hafeez is the Owner and Operator of Empower Energy Solutions, a company with over 200 million in revenue to date. Solar is their product, but Asim considers Empower Energy a people company, putting employees and customers first. He is the Owner of Bamboo Tech and Apex Construction as well as a real estate, early-stage, and growth investor and is a GP or LP in over 60+ companies. Born in Pakistan, he moved to the US at 10 years old, knowing no English. He started in performance-based pay at 18 years old and was managing several thousand people by 21 years old. He has managed over 10,000 people in various roles throughout his career. His comments have been featured in AOL, SHRM, and Startup Nation.

Business

Raising Awareness and Funds: Help Us Protect Our Family-Owned Business from Being Taken Over

Published

17 hours ago

October 29, 2024

Michelle Langton

Image credit: Samantha Karagianis

For most, family is a solid bedrock, a safe sanctuary offering love and support. But what happens when a family member, or even a parent, darkens this haven with manipulation and betrayal? The story that surfaces in Samantha Karagianis’s GoFundMe campaign exemplifies the devastating impact that one person’s Narcissistic Personality Disorder can have on the rest of the family.

Samantha Karagianis is raising awareness about the importance of setting boundaries with a close narcissistic family member. By sharing her example, she hopes to spare others from their emotional turmoil.

“Narcissists gain power over you by engaging in manipulative behaviors like gaslighting, guilt-tripping, and controlling,” Samantha observes. “Recognizing these behaviors is the first step in safeguarding yourself and those you love.”

Caught in the shadow of a narcissistic father’s betrayal

Samantha devoted years of her life to helping her husband build a business from the ground up, and they dreamed of creating a lasting legacy. Sadly, someone who should have been Samantha’s strongest ally is now the bitter antagonist in her story.

Two years ago, a promising chapter opened with Samantha’s father offering to invest in her husband’s business. She was overjoyed, interpreting this as an endorsement of their hard work. However, as time unfolded, her father failed to honor his duties and commitments, causing internal strife and jeopardizing the business’s reputation.

Tensions reached a breaking point when Samantha’s husband restricted her father’s involvement until he was willing to take a step back and respect his role. This decision, meant to protect the company’s integrity, was met with severe backlash. Feeling insulted and sidelined, her father gave his wounded ego free reign.

The importance of recognizing narcissistic behavior disorder early

Narcissism often goes unnoticed in families until an incident brings it into sharp focus. “As soon as you recognize narcissistic behavior, enlist the support of friends, other family members, or a therapist,” Samantha urges. “A support system provides validation and reinforces your efforts to maintain boundaries.”

Unfortunately, Samantha’s wake-up call came far too late. Her father’s first move was to steal $104,000 from their business line of credit, effectively crippling their company. His manipulative schemes escalated as he tried to convince Samantha to leave her husband, falsely claimed ownership of her husband’s intellectual property, and used every opportunity to belittle and undermine their efforts.

The true depth of his betrayal came to light when he set a trap under the guise of a reconciliation meeting at their warehouse. Instead of seeking a resolution, he ambushed her husband with his attorney, pressuring him to sell the business. When they refused, her father escalated his vendetta by creating a nearly identical business entity and convincing the bank to sell him their line of credit, financially crippling Samantha and her family.

“When you set boundaries, expect resistance, increased manipulation, and attempts to guilt you into changing your stance,” Samantha warns. “Be prepared to stand firm. In some cases, it may be necessary to limit or even cut off contact with the narcissistic family member, especially if they refuse to respect your boundaries and their presence is overwhelmingly detrimental to your well-being.”

In the lowest form of betrayal, Samantha’s father forged an alliance with another abusive figure from Samantha’s past: her eldest son’s father. This resulted in a temporary protective order that separated Samantha’s husband from her son, using her child as a pawn in a vicious game of manipulation.

Weeks have turned into anguished months of legal battles. The strain on Samantha’s family is not just over future financial concerns — it has seeped into the fabric of their daily lives, threatening their stability and emotional health.

Why awareness is crucial

Samantha’s heart-wrenching story mirrors the experiences of many who have had their lives upended by narcissistic family members. This toxic behavior manifests as manipulation, emotional abuse, or outright betrayal, leaving victims in states of hopelessness and despair.

Narcissistic family members excel in creating an environment of psychological distress. The constant gaslighting and emotional manipulation erodes self-esteem and fosters a perpetual state of anxiety.

Because narcissistic family members routinely appear engaging and charismatic to those outside the family dynamic, victims often endure this harsh, belittling treatment for years. They may feel isolated or blame themselves, unaware that they are dealing with a narcissist whose primary goal is to control and dominate.

When narcissistic family members retain control, the ripple effect of their actions spreads throughout the family unit, affecting spouses, children, and other relatives. These dynamics lead to strained relationships, mistrust, and even estrangement.

While society understandably prefers to emphasize the inviolable nature of familial bonds, it is crucial to recognize and address the harm that narcissistic family members can inflict. Victims of this psychological trauma must seek help and find the strength to prevent toxic relationships from harming the next generation. Standing up against such injustice requires courage, resilience, and community support.

Samantha’s GoFundMe story is a powerful message to others facing similar situations. It’s about finding the courage to set boundaries, prioritize personal well-being, and stand up against unjust behavior, even when that behavior comes from close family members.

“Setting boundaries with a narcissistic family member is not a one-time event,” Samantha concludes. “Most of the time, it is an ongoing process. However, continually maintaining those boundaries is the only way to preserve your emotional health and protect the ones you love.”