Personal Finance Investment Tips of 2017
Personal Finance Investment Tips of 2017September 28, 2017 • Uncategorized
Many Americans worry about their future financial stability. Investments can be a great way to prepare for the future, kids’ educational costs, and retirement. The financial world is complex and full of risk, but investors who take the time to conduct diligent research and invest carefully can make tremendous strides toward financial security in the future. Consider the following tips for managing your money in 2017.
Have Financial Goals and Monitor Your Progress
It’s a good idea to monitor your financial activity and make adjustments on a regular basis. You should have some idea of your financial goals, and, if that’s not on your radar, a financial advisor can help you develop realistic goals for you and your finances. Take time at least once a year to check your investment portfolio to make sure you are on track to meeting your investment goals.
Stay Educated
Finance is full of loopholes, exceptions to rules, backdoors, and insider strategies. If there is some aspect of your portfolio you do not understand or you are not sure why your investments aren’t panning out how you expected, research the topic and educate yourself. Learning more about the financial world will open more doors for you and your money, so try to maintain a reasonable working knowledge of how your investments work.
Weigh Risks Carefully
Any investment comes with a degree of risk. You won’t see any returns on your investments if you aren’t willing to take on some measure of risk in your portfolio. A financial advisor can help you develop a portfolio with an acceptable degree of risk. Being too conservative with your portfolio can lead to missed opportunities. Being too frivolous and engaging in high-risk investments can easily cost you quite a lot of money. Find an acceptable degree of risk you can handle and work with a financial advisor to maintain it.
Track Your Investments
Take time to track your portfolio progress. If you notice fluctuations in the market, ask your financial advisor for recommendations to protect your investments and seize new opportunities. Do not approach investment with a “set it and forget it” attitude. Successful investors must keep tabs on their portfolios to account for unexpected changes in the market.
Don’t Panic
Many people who pulled out of the stock market after the 2008 crash were hesitant to reenter and subsequently missed the opportunity for substantial returns. If you notice a downturn in your portfolio, do not panic or make emotional decisions. Markets rise and fall very easily and often without warning. If you pull out your investments too fast to “save what you can,” you could miss a significant opportunity later or miss out on rebound returns once the market stabilizes.
Diversity Your Portfolio
The old adage “don’t put all your eggs in one basket” is especially true when it comes to investments. It is very unwise to bank your future on one investment plan or one type of stock. If that market sector takes a downturn or a new market emerges and disrupts your current portfolio, you could lose everything. Instead of hedging your bets on one investment, aim for a healthy mix of different investments across multiple markets.
These are just a few of the ways you can make better decisions with your money in 2017. If you are unsure of what to do to prepare for your future, seek out a reputable financial advisor who can help you make appropriate financial decisions.