When most people think about health they focus on fitness, medical care, diet, and maybe, lifestyle. I‘m a distance runner and my focus is on building and maintaining the stamina to compete. As a runner, I use fitness workouts and diet to stay healthy. As an independent financial advisor, my focus is on financial health.
Confident investors have learned how to avoid financial trouble. They know the best ways to protect their financial health. They take control of their investing by regularly updating their knowledge and following the best practices for investors. They rely on advice and guidance from financial professionals.
Here is a summary of nine of investor tips from FINRA.
1. Take control by saving for retirement. If you insist on waiting until you have "enough" money to invest in your own retirement, you might find your definition of "enough" growing and growing, and you might never start at all. When you wait, you miss out on your money
2. Establish a rainy day fund. The inability to pay can make a tough financial situation worse, especially if you have to take on debt to pay the bills or go without vital services such as car repairs or health care.
3. Know what you own. Each type of investment has pluses and minuses, and it's important to know what they are for each product you own.
4. Stay (or get) diversified. Diversification helps protect the value of your portfolio if one or more of your investments perform poorly.
5. Check out your investment pro. Use FINRA's BrokerCheck. to regularly check out both the person and the firm managing your money.
6. Run any new investment by others. Heard a hot tip? Before you invest, check in with a registered investment professional, seasoned investor or a CPA.
7. If you get a cold call—put any investment decision on hold. Not every investment offer that comes in out of the blue is a scam, but don't be hasty about signing on to unsolicited offers.
8. Always remember that higher return comes with increased risk. The promise of higher return is almost always associated with greater risk and an increased possibility of investment losses.
9. Be alert to fraud—especially if you (or your parents) are closer to (or in) retirement. There are many stories about older investors—particularly, single seniors—being exploited by scammers.
You don’t have to do this on your own. Phillips Financial Strategies on Capitol Hill is based on the principle that education and understanding are critical to making wise and informed decisions as an investor. If you have any questions or concerns about these or any other investing concepts or wish to schedule an appointment, please contact us.
Source: Alert Investor
Material discussed is meant for general illustration and/or informational purposes only, and it is not to be construed as investment, tax, or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.