Personal Investment Decisions

When you dip your toe in the wide waters of financial investment you first want to know the rules. It is wise to invest for long-term benefit, but if you are going to play in the day trading or high risk high yield investment market, you really need to understand market dynamics.  

If you go to a financial advisor, and that advisor is reputable and professional, she/he will interview you to determine whether high yield mutual funds, or low risk investments are right for you. The more time you have to allow for market volatility the more risk you can take in hopes of pay off. If you need to investment money at low risk, you don’t want to invest in high risk start-ups or stocks in new international markets. You want to go with low risk bonds and perhaps some moderate risk mutual funds.  

High yield investments funds with a dependable history are run by fund managers with a proven history of portfolio decisions. But even these are not performing in today’s market. If you intend to jump into investments in today’s markets, the only safe path is a risk free path that will allow you to invest in areas that are not at risk. By all means, understand the difference between what a financial advisor may call high yield investment and the internet and financial pyramid schemes known as High Yield Investment Programs (HYIP). Never be tempted by these schemes or you will lose your life savings.

Once you have invested wisely, you can wait until the market stabilizes and change your investment strategy. Just be sure that your advisor invests your money in areas with some flexibility. When you are ready to move your investments among funds or into different strategic investments, you want to avoid having to pay high fees for that change in strategy.  

Staying in a fund family or group usually allows you to reinvest within the family without fee but you will want to know that the fund family has plenty of options for lower risk, moderate risk or high risk so you can make your moves as your financial position and the market changes.   

Investment funds are as diverse as the people who make the investment and there is one for nearly every risk level and lifestyle. In part, your financial advisor will make recommendations based on how much money you have to invest. Some high yield investment programs are only available if you invest a minimum amount.   

To invest money in the stock or bond market you don’t have to be an expert but you do have to take an active role in the decisions and recommendations made by your financial advisor.