Long Term Investments

If you are a young person investing in the stock or bond market, you should always take a long term view of your investments. Investments and investment funds are recommended by financial advisors based on a level of risk and the length of time you can wait for a positive return.

Long term investments require that you invest your money, touch base with your financial advisor once a quarter to decide on changes and then sit back and wait for your returns. The idea is to invest for your future, not to play the market. If you want to play the market and you are looking for high yield investments, and shorter return schedules you will have to invest more and take more risk.  

The more risk you take, the more active you should be in the decisions. In order to protect yourself you will need to stay in touch with your advisor and make active decisions in concert with your advisor. Don’t let your advisor play fast and loose with your money.  

It is critical to choose the right advisor! Pick someone with whom you feel comfortable, someone who will not talk to you in terms you cannot understand or use smoke and mirrors to manage your account. If you ask tough questions, your advisor should be ready to answer those questions, not discount them with technical jargon!

Everyone wants high yield investment but not everyone has the minimum amount to invest or the lifestyle and income to warrant the risk of some of the higher yield investment opportunities. Don’t be tempted by the promise of millions, and don’t fall victim to the High Yield Investment Program scams on the internet – otherwise known as HYIP. These programs promise high yield but are designed to take your money. In fact they have become so dangerous that reputable financial advisors will no longer refer to their high yield investment funds as ‘high yield’ because they do not want to be confused with the scam artists. Be realistic about what you have to invest and what you want to do with the money. Don’t be fooled by crazy promises! 

If you plan to use some of your investment for your children’s college fund or for your retirement you don’t want to play with that amount. If you have a little extra to invest in high yield investment funds or higher risk investments, take only that amount and play the market but make sure you play for the longer term.