Wednesday, May 6, 2015

Proven Advice to be a Successful Investor

When you are preparing to invest, one of the very first - and the most important - decisions that must be made is determining who to trust with your money. Once you have done so, you will be able to move forward much more easily with all of the other essential investment-related decisions.

That sounds simple enough but getting it done right is a different story. One important step that is easy to miss is evaluating the fundamentals.
When you evaluate investment ideas, strategies, and approaches for inclusion in your investment plan be purposeful.
Trust but verify that the fundamentals are actually put into practice for any investment you are considering. Some of the core values we look for include:
  • A defined, high-quality research process that is actually used, and favors long-term investors like you.
  • An even-handed or reasonable balance between cost and return. Be willing to pay a fair price for the type and level of returns that you expect or desire. Don’t be fooled by low cost investments with low returns or high return investments with high fees.
  • Adjustments to ensure your cost and return expectations match the right amount of risk for you, your family, and your goals.
  • A total commitment to honesty and integrity.
While these core values may not include in-depth mathematical formulas for choosing the proper investments based on numerical factors, they are actually more important in many ways. Trust and integrity are something that cannot be bought – it has to be earned.

So, before investing your hard-earned money, be sure to check out the
core values, management team, long-term history, results, fees and overall track record of where you plan to place your investment funds. Chances are that you will be much better able to sleep at night, knowing that your money is with a company that you trust.

Dare to Diversify So You Can Prosper

Throughout the years, successful investing has actually had less to do with the picking of individual stocks and more to do with the choosing of a well-diversified portfolio that consists of a nice mix of different types of assets. We've all likely heard the famous phrase, "Don't put all of your eggs in one basket." This is very good advice when it comes to investing.

There are numerous ways you can diversify your investment mix, depending on your tolerance to risk, your investment time horizon, and your overall financial goals.While the idea of putting together a well diversified portfolio of investments may seem to be a bit daunting, the good news is that it does not have to be difficult.In fact, by starting out with a plan, you will be able to get a good idea of the types of assets to include in your portfolio initially - as well as how and when you may need to adjust your diversification strategy over time.An actively managed portfolio can help to alleviate much of the work that must be done by an individual investor.
By allowing specialists to take over the task of replacing various investments at the appropriate times, you can see a difference in their overall portfolio return while still having time to play with your children or take those important vacations.