Wednesday, February 21, 2018

Determining Where You Will Invest

March 31, 2010 by  
Filed under Financial Services

There are lots of different types of investments, and there are many factors in determining where you should invest your funds.  So many so that it may be confusing to you if you do not get the right education.
Determining where you will invest begins with researching the various available types of investments, determining your risk tolerance, and determining your investment style – along with your financial goals.  This can take a lot of time and effort.
Like most people though, if you were going to purchase a new car, you would do quite a bit of research before making a final decision and a purchase. You would never consider purchasing a car that you had not fully looked over and taken for a test drive. Investing works much the same way.
You will of course learn as much about the investment as possible, and you would want to see how past investors have done as well. It’s common sense!
Learning about the stock market and investments takes a lot of time… but it is time well spent. There are numerous books and websites on the topic, and you can even take college level courses on the topic – which is what stock brokers do. With access to the Internet, you can actually play the stock market – with fake money – to get a feel for how it works.
You can make pretend investments, and see how they do. Do a search with any search engine for ‘Stock Market Games’ or ‘Stock Market Simulations.’ This is a great way to start learning about investing in the stock market.
Other types of investments – outside of the stock market – do not have simulators. You must learn about those types of investments through other means.  What other means?  First is by reading!
As a potential investor, you should read anything you can get your hands on about investing…but start with the beginning investment books and websites first. Otherwise, you will quickly find that you are lost.
And second, is by speaking with a GOOD financial services rep, advisor, or coach/trainer.  Tell them your goals, and ask them for their suggestions – AND WHY!  A good coach can easily help you determine where to invest your funds, and help you set up a plan to reach all of your financial goals. Many will even teach you about investing along the way – make sure you pay attention to what they are telling you!
Here’s one thing to keep in mind though.  Over 75% of the advisors out there will tell you something which may not be the best for you so they can maximize their commissions.  You want to make sure you find the 25% of the advisors out there who are working for you – the ones who know that by helping you achieve greater and greater success, that they too will achieve greater and greater success.  Find someone who is willing to work with you for you – not for their own pocket book.
And of course, how do you do this?  First as mentioned above, read.  Learn enough so you can ask the right questions.  You don’t have to become a professional, just know enough to know what questions to ask.  Then start asking questions.  Make sure any advisor you talk to fully explains the different investment options available to you and why they think one is better than the other.
You’ll be able to tell if someone is not looking after your best interest if they can’t answer your questions properly.
No one will look out for your money better than you.  So make sure you work with the right person who will help teach you about your money – even if they are look after it for you.