It’s probably obvious but your knowledge and interest towards finance certainly are an important factor that will help or hinder you in your financial decisions regarding your investments.
Being a good investor requies time and if you are not entirely interested by the subject or not dedicated to putting the necessary time to make a regular reviews of your investments, there are alternatives that could be of great interest to you. But before going further down this path, I would like to tell you that no matter who you delegate the management of your assets to, it is still very important for you to keep an idea of what is going on, what’s being done. Once that is accomplished, when you read about new facts or events happening in the markets, in magazines or newspapers, you will be able to see if it could have any effect on your portfolio or even ask your investment advisor about it. In the world of finance, way too many investors take no interest in what is happening with their finances only to wake up when it’s too late. Follow your investments, and ask questions to those who manage your assets.
For example, if you see that your investor bought a stock for your portfolio and then resells it a few weeks later, it’s worth checking it out. Did anything change in the perspective of this stock? Or is your IA simply giving himself a little bonus in commissions? It might not be the case but it’s worth checking it out. Unless you have a significant amount of money set aside, you will be investing with a long term perspective anyway.
One of the good ways of investing money yourself without spending too much time doing so is by buying mutual funds, here are some important elements to keep in mind if that is what you decide to do:
–Don’t put all of your eggs in one basket: No matter if it is because of investment errors or problems with the investment company you’re using, there really is no reason to set all of your money with the same fund manager. Use more than one fund with more than one company
–Diversification: It’s worth having several type of funds (for example, investments in other parts of the world or other industries). You can now even buy funds that are targetted to you specifically, or almost. They are created to match the investment purposes of a person your age, and are named with the planned year of retirement. They will invest in risky investments in the early years and gradually move towards safer ones as you approach and then pass your retirement age.
–Don’t run after returns: One of the main reasons that is costing investors a lot of money is because they keep changing funds, always looking for the hot fund. Every time you enter or get out of a fund, you usually have fees that will be charged. There are no reasons to change unless you think that in a long term perspective, the fund you have is no longer suited for you, and that should happen very rarely.
|How I Suck at Not Paying Debts||Hitting 6 Figures Income at 28|
|How I Get a Huge Income Raise Each Year||Making $125K Online in 12 months|
|How I Buy Blogs||Most Debated Articles: The Primerica Saga|
|How I Have Survived My MBA||What is So Wrong With Making Money?|
|How I run multiples blogs and makes money without burning out|