Building blocks of investing

Investing for
Beginners

Getting started with investments can be overwhelming. Because of this, we’ve defined the building blocks that beginning investors should understand and follow. These steps will help you make the right decisions, and be able to compound your efforts (and investments) over time.

Not All Assets Are Investment Assets

An asset is anything of value that can be converted into cash. While this could encompass a laundry list of items, what’s important to understand is how you define an “investment asset.” Investment assets are defined by the following 3 elements:

1

The investments’ worth can be determined.
2

It is owned indefinitely or through maturity.
3

It pays you to own it.

How Liquid Or Illiquid Are Your Assets?

When determining whether an asset is liquid or illiquid, a good rule of thumb is determining how long it will take to convert to cash. Less than three days, it’s liquid. For more than three days, it’s illiquid. Furthermore, it’s important to also understand how much it will cost you to convert the asset into cash. Less than 1%, it’s liquid. More than 1%, it’s illiquid. What’s important to consider here is what level of access you have to your investments, and what the process would look like to convert them to cash.

Your Asset Mix: Stocks, Bonds, And Cash

Typically referred to as Asset Mix, the combination of stocks, bonds, and cash in your portfolio is important. While asset mixes vary across different types of accounts, it’s good to think about stocks being designated for growth while bonds are designated for income.

Depending on your wants, needs, or risk tolerance, you may choose a variety of asset mixes. However, our recommendation is to start with a 65/35 account (two-thirds stocks and one-third bonds).

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Financial Investments?

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understand the practical tools of investing, sign up to take the course today.

Why Beginning Investors Are
Believers In Objective Measure

Experience

With nearly 50 years of financial experience, the Objective Measure team brings access to knowledge that others pay big dollars for.

Non-Profit Status

Investing is not meant to make you rich, but a purposeful activity meant to enrich your life. When was the last time you asked yourself, how might I enrich my life if I learned to invest confidently?

Roadmap

When you’re a part of the Objective Measure ecosystem, you get access to your financial success roadmap. This means you step through education & training to improve your thinking. From improved thinking to empowerment. From empowerment to changed behavior. And from changed behavior to different results.

What Objective Measure Classroom Attendees are Saying: