When it comes to money matters, having a solid plan is everything. That’s where Gage Hemmelgarn comes in. As a Certified Financial Planner (CFP®) and Certified Exit Planning Advisor (CEPA®), he’s been guiding clients toward financial confidence since joining Edward Jones in 2012. Whether you're planning for retirement, navigating investments, preparing to sell a business or just starting out, Gage believes in strategies that are smart and sustainable. We asked Gage questions on how to get started.
Q: When is the right time to start investing?
A: The best time to start is as soon as possible. Even if you can only invest a small amount at first, consistency is key. That said, it's important to have a strong financial foundation, such as an emergency fund and manageable debt before diving in.
Q: Should I focus on paying off debt or building an emergency fund before investing?
A: It depends on the type of debt. High-interest debt (like credit cards) should be paid off first because the interest outweighs potential investment returns. If your debt has a low interest rate (like a mortgage or student loan), you can invest while paying it down. However, having an emergency fund is crucial before investing, so you don't have to sell investments at a loss when unexpected expenses arise.
Q: How much money should I set aside before I begin investing?
A: There's no one-size-fits-all answer. It all starts having a goal in mind. Are you investing for retirement, a house or general wealth building? Your goals determine your strategy.
Q: How do I determine my risk tolerance, and why is it important?
A: Risk tolerance is your ability and willingness to endure market fluctuations. You can assess it by considering:
- Time horizon: Longer time frames allow for more risk-taking.
- Emotional response: Can you handle market downturns without panic-selling?
- Financial situation: Do you have stable income and savings to cushion volatility?
Q: What are the main types of investments and how do they differ?
A: The main investment types include:
- Stocks: Ownership in a company, offering high growth potential but more volatility.
- Bonds: Loans to governments or corporations, providing stable but lower returns.
- Mutual Funds: Professionally managed funds that pool money to invest in a mix of assets, offering diversification but often higher fees.
- ETFs (Exchange-Traded Funds): Like mutual funds but traded on stock exchanges, typically with lower fees and more flexibility.
Each type has a different risk-reward profile, and the best mix depends on your financial goals.
Q: What is diversification, and why is it important for my portfolio?
A: Diversification is spreading your money across different types of investments, stocks, bonds, real estate and even different industries so that if one area takes a hit, the rest of your portfolio can help balance things out. It's important because it helps lower risk and keeps your investments more stable over the long run. A well-diversified portfolio is one of the best ways to ride out market ups and downs.
Q: What are the benefits of working with a financial advisor?
A: A good financial advisor looks at your entire financial picture. That includes budgeting, debt management, retirement planning, tax strategies, insurance and even estate planning. Investing is just one piece of the puzzle and an advisor helps make sure all the pieces fit together to support your long-term goals. They also help keep you on track, adjusting your plan as life changes and helping you avoid emotional decisions that could impact your planning.
To schedule an appointment with Gage Hemmelgarn, contact his team at 513.777.5555.
"Investing is just one piece of the puzzle and an advisor helps make sure all the pieces fit together to support your long-term goals." -Gage Hemmelgarn, Certified Financial Planner + Certified Exit Planning Advisor