Investing for the first time? Here are a few tips to help you get started

This column is by Mark Ting, a partner with Foundation Wealth.He canbe heard every Thursday at 4:50 p.m. onCBCRadio's On the Coast.

When it comes to saving or investing, the sheer volume of choices can be intimidating for someone who has accumulated some money, wants to use it wisely but is unsure of where to start.

If someone is debt-free and ready to invest, the most important consideration is timeline: Will the funds be used over the next year, or can they be set aside long-term for a down payment on a condo or to fund one's retirement?

If the timeline is unknown, I would err on the side of caution and place the funds in a high interest savings account or a cashable term deposit which are currently yielding threeto four per cent.

It is also important to "shop around,"as financial institutions will often match their competitor's rates.

Understanding 'market risk'

Having too much money in a chequing account isn't recommended due to the daily erosion of buyer power caused by inflation, which is currently running around sevenper cent.

If you have longer-term goals and would like your investments to exceed the rate of inflation, consider speaking to an investment advisor.

Many new investors are hesitant to invest in the stock market because they worry about "market risk," which isthefear of a market crash, heightened volatility or, simply, the fear of losing money.

"Market risk"is not my main concern as it can be managed with proper asset diversification and time.

I won't go as far as to say that "time heals all,"but history has shown that well-diversified portfolios and North American stockmarkets are resilient and recover after an economic downturn.

Finding the right advisor

What I'm most concerned about for Canadians is the risk of themrunning out of money.

We tend to be overly conservativeand, often, emotional investors, who are prone to buying high and selling low behaviours which greatly hinder the overall long-term returns of a portfolio.

Many new investors are further disadvantaged as it can be a struggle finding a good investment advisor who is willing to take them on as a client.

They often lack the minimum amount of investable assets required by many established advisors.

However, for somethere is a workaround. Try leveraging the relationships of your friends and family and see if they can help you set up a meeting with one of their trusted advisors.

You probably won't end up being a client, butthe advice is usually free and they can help steer you in the right direction.

Time is on your side

Young investors shouldn't worry too much about market volatility as they have timeliterally decades on their side.

Unfortunately, the proven "get rich slow"style of investing doesn't cut it for many, so they gravitate towardthe very-risky-but-high-potential strategies.

My advice would be to implement a slow and steady investing strategy, adding to it monthly, over time, no matter what is happening in the markets or economy.

I don't have a problem with new investors trying something aggressive like cryptoor a new tech stock, but the allocation should be very low as these investments will likely disappoint.

That said, I know from experience that we learn from our mistakes, soas long as most of their portfolio is being invested based on proven strategies, I don't mind if a new investor dabbles in some stock picking as it can be a very good learning opportunity.