Is smart investment advice priceless? How can you put a price on smart investment advice? How can you afford not to pay for smart investment advice? Isn’t attempting to make money the reason people enter the investment world? If it’s too good to be true, is it?
Investment money isn’t easy. If it were, more people would be rich. That doesn’t mean you can’t invest in the market if you are not a professional investor. It does mean, however, that you should abide by a few rules to keep your sanity.
Here is what another professional in the investment industry told me recently.
“There is no such thing as a good long-term and short-term investment.”
So what does that mean for your portfolio? You should understand your risk tolerance, time frame and tax status BEFORE investing your dollars. It’s important to comprehend that smart investments, in the long run, may not be so hot in the short term. If you need money in the short-term or have a very low tolerance for risk, then invest in securities that match your needs.
Avoid the emotional roller coaster and plan ahead. If you aren’t going to be happy in you, lose a significant percentage of your portfolio then don’t set yourself up for disaster. If you are investing in the equities markets, then your should reasonably understand that it’s probably not a short term money maker. On the other hand, you shouldn’t shortchange yourself in your investing in the long term either. Inflation has a big effect on the cost of living and can hinder your chances of having a healthy retirement and financial independence.
Review your plan at least annually and as your situation changes with your advisor. It can help you to continue understanding your investments and get a grip on your emotions. It can also remind you of your chosen plan and investment portfolio. Selling out of your investments just because your emotional may not be the best choice. Taking the emotions out of your investments may have a significant impact on your ability to reach your goals.
Remember your investment objectives! And get professional advice before making any investment or planning decisions.