Personal FinanceAaronAmat / iStock via Getty ImagesJoey FrenetteThis post may contain links from our sponsors and affiliates, and Flywheel Publishing may receivecompensation for actions taken through them. It can be nerve-wracking to jump into the stock market waters with the number of issues weighing heavily on investors’ minds. With market valuations getting a tad too lofty for some (including the great Oracle of Omaha, it seems) and question marks surrounding Trump tariffs and the potential inflationary impact they’ll have on the American economy, it can be a somewhat uneasy time to invest new money right here.The last thing a new investor with a sizeable sum wants to do is put themselves in an investment that could keep them up at night.Not everybody will have the courage to stay invested for the long haul, especially once volatility or a bear market emerges. However, by taking no risks and staying in cash, you’ll struggle to grow your wealth and will be pushed backward by inflation.Investing can be pretty scary at most times, given the horrid headlines that can and likely will come in regularly. And while you can’t change your risk tolerance (at least over the near term), I think there are ways that investors can season themselves over time that allow them to invest with less fear.Now, one could always jump off the deep end and own stocks despite their fears of a potential market crash. However, I believe that personal finance guru Suze Orman has the best advice for new investors who are scared to put their money to work in markets.Key Points About This ArticleSuze Orman is a fan of dollar-cost averaging for new investors who are scared to get started.
Incremental buying of dividend stocks could be a smart way to move forward while keeping fears in check.
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Easing into stocks gradually is a smart move for new investors, according to Orman.24/7 Wall StOrman believes that gradually trickling small portions of cash into stocks could help investors get used to market volatility. In essence, such market newcomers can get used to the turbulence by wading into the shallow end of the stock market waters. Indeed, I couldn’t agree more with Suze: dollar-cost averaging is a powerful tool, especially for nervous new investors.Let’s say you have $100,000 that you could invest in stocks today. Instead of putting it all to work in stocks or exchange-traded funds (ETFs) at a single point in time, you could invest $1,000-5,000 every X number of weeks or months. That way, you’ll gain the feeling of what it’s like to be an investor in stocks. You’ll grow used to the bumps in the road and perhaps shed your fear of investing over the long run.Indeed, stock market crashes are going to happen. The key is not being put in a spot where you’d panic sell. By preparing well ahead of time for such declines, you can know exactly what to do when others around you become incre
Mar. Gen 7th, 2025
