April 25, 2024
Nadine Terman and Solstein Capital

Nadine Terman and Solstein Capital Explain Strategies for Successful Financial Investing

Nadine Terman is the CEO and CIO of Solstein Capital, a wealth management and financial services firm. In the following article, Nadine Terman discusses financial strategies for investing, the importance of setting financial goals, and how to save for the future.

Those looking for financial advice on the internet often overlook some of the most important things required for a proper investing mindset. These finer points include big ideas such as setting realistic, achievable goals versus seeking easy money, and starting early. Nadine Terman and Solstein Capital explain some strategies for investing to achieve individual financial goals.

Have an Objective

The best investment strategy is to have a goal or objective. Doing so will allow an individual to gain insight on how much they need to invest.
Nadine Terman explains that the end goal also dictates how they will invest. Investment is not just about money, it can be an investment in a career, real estate, or other assets. A life goal can be a powerful motivator by itself.

Having a target timeline, whether it is 2 years or 40 years away, is the first step in setting up an investment plan. It can be as simple or complicated as the goal itself. Nadine Terman and Solstein Capital say not to fall into the trap of blindly investing money in a “get rich quick” scheme or focusing on very short-term goals, because it will be very difficult to achieve long-term success that way.

Start Early

Many adults were taught the basics of investing as children. They were given piggy banks, allowances, and, most importantly, something to save for, such as a gift they didn’t receive for a birthday or holiday. Nadine Terman says that this financial education prepares children with basic ideas about investing for the future.

Younger couples and single individuals also have an edge when investing. Not only do they have time on their side, but often they have less complex lives. They may not have children or have to care for older family members or have a mortgage.

Nadine Terman and Solstein Capital explain that this extra financial freedom makes it easier for them to begin to invest for the future.

Open a Savings Account

Nadine Terman of Solstein Capital says that one of the most basic ways to start investing is to open a savings account and a brokerage account. A savings account provides a safe place to store money and earn interest over time. A brokerage account enables an individual to invest money in different assets.
Both can help individuals save for short-term goals, such as emergencies or a down payment on an asset like a house or car. Savings accounts also allows easy access for managing money, tracking spending, and building a financial cushion for future endeavors.

Nadine Terman and Solstein CapitalChoose a Retirement Plan

Most people in the US work for a corporation. These companies usually come with a retirement plan such as a 401(k). Nadine Terman and Solstein Capital report that a 401(k) offers some tax benefits in exchange for a small percentage out of an employee’s paycheck before it is taxed.

But there are also reasons to consider IRA or Roth accounts. For example, some companies do not always match the dollar amount someone deposits into their 401(k). Different types of retirement accounts are also taxed differently, so it is wise to work with someone to understand what options are best for you and align with your goals.

Pick an Investment (or Twenty-Five)

Nadine Terman explains that opening up savings, brokerage, and retirement accounts are just the start.

Working with an experienced investment professional can help you determine your risk profile, investment objectives, long-term wealth goals, and other key factors such as liquidity needs. An experienced investment professional can describe whether or not various assets could fit with your goals, which could include:

  • Government bonds and other fixed income
  • Stocks
  • Real estate
  • Physical assets (gold, silver, etc.)
  • Cash
  • Digital assets

Nadine Terman says that many investors should also consider diversification. If one type of asset declines meaningfully, another asset may outperform and improve overall returns and lower risk. This strategy may also include investing internationally. When the US Dollar fluctuates, the relative attractiveness of US assets versus international assets can change.

Conclusion

Many sites about investing fail to consider the necessary mindset and preparation for investing. Working with an experienced professional to set goals and understand your short-term and long-term requirements should be the foundation of your investment plan. After that, it is a matter of choosing the best investments for reaching those goals.