What's your investing style – dipping in or taking the plunge?


(NC) With so many options for investing your hard-earned dollars, it can be difficult deciding where to put your money. Making the right decision starts with understanding what type of investor you are, and how comfortable you are with risk.

The investing pros at RBC suggest that one way you can do this is to think of your investment style as either “toe-dipper” or “cannonballer”. Here’s what they mean.

The toe-dip investor. Say you have some money saved up, but you don’t feel ready to put all of it into an investment. Or you may think you don’t have enough money saved up to invest. This is when you can look to an online investment management service, where you can start investing without a lot of money.

At RBC InvestEase, for example, you can open an account with no minimum – you start with any amount that’s right for you. Once your balance reaches $100 or more, your money is invested for you, based on your risk profile. As you contribute more to your account, your investments can keep building.

The cannonball investor. Say you’ve got $5,000 or more in savings and you want to begin by investing it all at once. You can pick one or more investments for your entire savings amount and go “all in” right away. In investment circles, this is known as a "lump-sum" approach.

Both approaches will be based on your risk tolerance and your time horizon – the length of time you can invest before you reach your retirement or any other financial goal you have in mind.

Which style is best for you? Really, it all comes down to what you’re comfortable with. Whether you dip in your toes or make a big splash, you’ll accomplish the most important part of investing: getting started.  

Find out more about online investing options at www.rbcinvestease.com.