An Investor's Guide to Basic Investing Principles

When it comes to long-term wealth building, investing is key. But knowing how to make sense of it all can be a lot. That’s why the articles in this section help level up your foundational know-how of investing basics so you can invest with confidence. 

Resources to Help You Understand Investing Basics

From portfolio diversification to tax-efficient investing and more, the insights in this section set you up for more knowledge and more confidence — whether you gravitate to self-directed investing, are working with an advisor, or both.

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illustration, woman with large magnifying glass staring at large tax season list

A Guide to Mutual Fund Expenses: What You Need to Know

| LPL Financial

Uncover the hidden fees eroding your mutual fund returns. This guide reveals the true cost of investing, from tax drag to turnover ratios. Discover strategies to help optimize your portfolio today.

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Mid-Year Tax Strategies Investors Often Overlook

Waiting until December for tax planning limits your options. This guide explores proactive mid-year strategies, including Roth conversions and portfolio optimization. Discover how to take control now.

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Tax-Efficient Investing for High-Income Earners

Smart investing starts with tax efficiency — find out how to manage your returns and build long-term wealth.

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What Every Investor Should Know About Risk and Return

Every investment involves some degree of risk, but not all risks are the same — nor is risk inherently bad. Risk can create the potential for higher returns. The key is to understand how risk and return work together so you can make informed decisions that align with your short- and long-term financial goals.

illustration, woman in front of life size vertical bar chart inserting large coin into chart

Portfolio Diversification: Smart Strategies for Investors

Managing risk and achieving consistent returns are likely at the top of any investor’s financial goals. One of the most effective ways to achieve these objectives is through portfolio diversification. In this article, we'll explore what it means, why diversification matters, and ways to implement it effectively in your investment strategy.

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When to Hire an Advisor Over Self-Directed Investing

Thinking of hiring a financial advisor? Read on to learn when do-it-yourself (DIY) investing works — and when experienced support could be the smarter long-term move.

illustration, woman with large magnifying glass staring at three large charts

Investing in Volatile Markets: Strategies for Uncertain Times

Market swings can be stressful. Discover how to deal with market volatility, avoid emotional decisions, and keep your portfolio on track.

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INVESTING FAQs

To start investing, simply open an account or work with an advisor to get set up, set clear goals, and begin with a diversified mix. The key is to start early and stay consistent — every step you take now builds towards your financial future. 

You can definitely start investing on your own, and many people successfully manage their investments independently.

Keep in mind, as your needs become more complex (e.g., navigating taxes, estate planning, or retirement transitions), working with a financial advisor can provide valuable guidance. Check out the benefits of self-directed investing versus working with an advisor to learn more. 

You can start investing with any amount. That’s because investing is more about building a habit, not the initial amount. Even small, consistent investments can grow significantly over time. Focus on starting early and staying committed, and you'll be on your way to long-term financial freedom. 

What’s Your Tolerance for Risk?

Answer a few quick questions and learn where you fall on the risk scale — from defensive to conservative to aggressive.

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Understanding What an Advisor Does

Whether you go it alone or use the help of an advisor, your first step is learning what to expect from a financial advisor.

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New to LPL?

Welcome. As an investor who’s new to LPL Financial, you may have questions. We’re here to provide answers.

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Disclosures

Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

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