Is Best Investment Advice To Always Invest In Stocks
If You Do Not Invest In Stocks What Else Is There?
If your financial goals already spell out what you want to accomplish and how you plan on reaching those goals then all you have left to do is save money, right? Too bad it wasn’t that easy.
If you hope to achieve your financial goals you will also need to fine tune how and where you invest your money. You have so many choices; you can invest in stocks, bonds, mutual funds, real estate, collectibles, life insurance or annuities. Which one is right for you? Only you will know.
Invest In What You Know
It’s best to invest in whatever type of investment you are comfortable with. Never feel pressured to do what everyone else is doing. If you do not feel comfortable enough to invest in stocks and prefer to invest in mutual funds, that’s okay. You need to be at ease with where your money is invested. The stock market will gyrate whether you invest directly in stocks or through a mutual fund; but at least with a mutual fund, a professional money manager oversees and manages the investment money.
Invest In What You Understand
Most types of investments are complex. Before you invest make sure you understand the investment type. People get into financial trouble when they invest in something they do not understand. If you are not familiar with how the stock market works, do not invest in stocks. Or learn about stocks and the stock market before you invest. If you do understand the complexities of the real estate market, that’s where you invest.
Regardless of your choice of investments always be sure to monitor the performance. Is the overall return on investment meeting the expectations you had for it? Set a benchmark for how long you will hold onto the investment before selling it if it does not meet those expectations. If your investments are not measuring up be sure to have an action or exit plan. Only you can set the bar for your risk tolerance, be sure to do so.