We don’t talk about it enough in the investment world, but investing in something new can be intimidating. There’s always some level of risk, and it’s natural to feel nervous about redirecting your hard-earned money out of your bank account. 

While fear is completely valid, especially when making your first big investment, it’s important to not let that fear keep you from taking action altogether. Investing is the single best way to build wealth and secure a solid financial future for you and your family. 

Whether you’re investing for the first time ever or you’re a newly Accredited Investor who’s just starting to explore the opportunities available to you, it’s important to lay a strong foundation of mindset, knowledge, and resources. Here are four important steps to take to set yourself up for investing success. 

1. Understand Your Personal Motivation

What is your end goal as an investor? It may seem like a silly question — obviously you want to increase your wealth and see returns on your investments — but it’s important to understand the specific details of what you hope to achieve and when.

Are you in your 30s and trying to build retirement savings? Or are you looking for ways to generate consistent income for yourself in the immediate future?

And on a deeper level, what do you hope to achieve by building wealth? Are you working to create a financial legacy you can pass onto your children? Do you want to transition out of working in a corporate job and instead focus your time and energy on investing?

Answering these questions will help guide you through the next three steps as you decide on the specific types of investments that make the most sense for you. But just as importantly, they also help you identify your investing “why.”

No matter what you’re investing in, you’ll likely reach a point where you start to doubt yourself or feel like giving up. When that happens, having a clear goal in mind can keep you motivated and remind you what you’re working toward.

2. Identify the Investment Benefits and Locations that Can Help You Reach Your Goals

Once you’ve outlined your end goals, it’s much easier to narrow down the specific expectations you have for your investments.

For example, if you’re focused on investing for retirement, you’re more likely to benefit from investments that require a long-term commitment than you would if you’re investing for a short-term goal and need a lot of liquidity. 

If your goal is to start relying less heavily on your earned (W-2) income from your job, then you’ll likely want to look for tax efficient investments that can both generate returns and help you hold onto more of your wealth. 

With these details in mind, you can then evaluate potential investments more strategically. 

Take real estate, for example. When you’re preparing to invest, don’t just look at the overall strength of a market, but rather think about the specific ways different locations can align with your goals. 

If you want a cash flowing investment with consistent rental income, cities like Nashville and Salt Lake City are most likely to provide that for you. If you want to purchase real estate that will appreciate over the course of years, markets like New York City and Los Angeles may provide the best options for you. 

3. Build Your Team

As soon as you have a clear understanding of what you hope to achieve and where you plan to focus your investments, it’s time to build a team to support you on your investment journey.

This team may look different based on the type and scope of your investments, but it might include brokers, lending partners, operators, attorneys, accountants, and advisors. 

Remember that it’s your wealth on the line, so it’s important to find the most qualified, trustworthy partners who are committed to helping you succeed. 

You should also look for people who have experience helping people meet your specific goals — whether that’s investing for retirement, building a real estate portfolio, or improving your tax efficiency — and who are familiar with the location where you plan to invest. 

4. Find Your Opportunities

So you’ve identified your goals and expectations, picked the locations where you plan to focus your investments, and built an amazing team of experts to guide you; Now what?

The truth is, the specific details of any one investment matter much less than your broader strategy and approach. Once your mindset is in the right place, it’s much easier to sift through all the opportunities available to you and figure out which ones align with your goals and which ones do not. 

The type of asset you invest in — whether that’s real estate, energy equipment, ATMs or storage units — matters much less than most people realize. The important things to focus on are the investment timeframe, tax implications, and expected returns. Plus, with a clear understanding of your goals, your trusted advisors can easily help you find opportunities that make sense for you. 

If you’re looking for a partner who understands the specific needs of first-time Accredited Investors, or you’re particularly focused on improving your tax efficiency through direct investments, our team at First Generation Capital Partners would be happy to come alongside you and help you reach your goals. Simply fill out this brief form to contact us today and start learning more.