Investing is done for one reason alone. People want to see a return on the money they have invested. Turning every dollar into $1.07 means net worth has grown. Decades of compounding even a small amount of growth is going to yield good rewards. Unfortunately, some people do make truly terrible decisions with their investing strategies. They go for huge returns on investments, and end up with nothing. To help people avoid making common disastrous mistakes, Brad Reifler has published five very helpful tips.
A deliberate and careful approach has to be taken by anyone hoping to put their money into an investment vehicle. Knowing what the risks are and the common pros and cons about a particular market is necessary before making a decision. Precious metals, for example, do well when currencies are weak. If the currency market was to make a huge rebound, precious metal investments could end up tanking. Performing necessary research and being very careful prior to putting money into anything flat out must be done.
Don’t put money at too high of a risk. Brad says on Twitter that investments are not just about growing money, they are about protecting it. Protect all money set aside for investing. Not doing so could lead to the money being lost.
Wikipedia makes it pretty clear that Brad has a long history with investment. That’s why he knows that the stock market is easily the most common and most popular choice for an investment vehicle. The stock market is definitely a wise place to put money. Putting all one’s money into the stock market, however, is a pretty bad plan. If the market suffers, then all the money a person has in the world suffers with it unless some of that money is directed elsewhere. Real estate, bonds, and other investment options are available. They should be taken advantage of, even those that pay little interest.
Relying on a professional broker or hedge fund manager is quite common, but something Forefront Capital and Brad Reifler are trying to change. Before allowing anyone to handle any money, perform the necessary research to be sure the individual is reliable. Most professionals are honest and possess integrity. Recent financial scandals have shown their number is not 100%. To avoid falling victim to a scam, always vet those who are handling all money and investment decisions.
Ask all important questions regarding the “why’s” of investing. Some want small returns and security, others are interested in long-term deals, and then there are those who enjoy volatility. Knowing why an investment is being made helps with coming to a decision, the right decision, about what to do with money.