What Kind of Investor Are You

We all know that investing is important. However, if you’ve never done it before, it isn’t the kind of thing that you should rush into. Instead, you want to consider who you are, what kind of an investor you are, and what kind of investing you feel comfortable with. Committing to thinking about these things can really help you to make investments you’ll feel good about.  

Think About Yourself
First things first, you’ll want to do some thinking about…yourself. A little self-assessment can be super helpful in determining the type of investor you will be. You’ll want to think about things such as:

l  How you make decisions/what kind of timeframe you need for doing so

l  Whether you prefer hands-on advice from a financial adviser or just a little guidance here and there as needed

l  How you handle disappointments and anxieties, both of which are common in the investing world

If, based on your self-reflection, you find that you are someone who likes to be in control of your investments and involved in them, then find a financial adviser who will respect that about you and give you plenty of room to make your own choices.

If you’re not someone who feels comfortable making big financial decisions yourself, that’s okay. You can hire a financial adviser who will do all of the hard work for you and even help you to lessen risk if that makes you nervous.


Really, no matter what kind of investor you are or what your preferences may be, a good financial adviser can be extremely beneficial. In fact, they’re so beneficial that you really shouldn’t try to “go it alone” with your investments. No matter how brave you are or how comfortable with risk, it’s still just plain smart to get expert help.

The Skinny on Self Directed 401(k)s

You probably already know that saving for retirement is important. Hopefully, you also know that there are a variety of ways in which you can save for retirement. One of the most common of those ways is through a 401(k), but it’s important to understand that there are actually several different types of 401(k) plans. One of the best types, especially for people who wish to have more control over their pre-tax retirement contributions, is the self-directed 401(k).    

Invest the Way You Want

With a standard 401(k), you really aren’t responsible for managing the plan yourself, which some people like. If, however, you’d actually like to have more control and invest the money the way that you want to, then a self-directed 401(k) is the right choice for you

With this option, you can choose your own stocks, mutual funds, and bonds, or you can even choose to invest in alternate ways, such as real estate or commodities.

The thing to keep in mind, though, is if you want to be successful with a 401(k), you do need to know HOW to invest, which takes a lot of experience and knowledge. If you don’t have that, then, unfortunately, you might have a hard time investing wisely.

Not having investment experience, however, does not mean that you can’t have a self-directed 401(k). It just means that you might need a little help understanding your investment options and choosing the best ones to meet your retirement needs and goals. That’s where hiring a skilled, experienced investment adviser can really come in handy. These professionals can help you to make decisions about your self-directed 401(k) and related investments that are going to benefit you both now and in the long-run.

The bottom line is that, if you want more control than a basic 401(k) plan offers, go with a self-directed option, and seek help if you need it. If you can follow these tips, then you should have great success with saving for retirement!

Tips to Protect Your Portfolio

Investing is always a smart move, but it can also be risky business. Losses and “downs” happen regularly in the investment world and can affect even the smartest and most careful of investors. Plus, no matter how removed it may seem, there is always the possibility of a recession or a market crash; it’s happened before, and it could happen again. The good news, however, is that, no matter what the future may hold, there are surefire ways to protect your portfolio and your investments.  

Embrace Diversity

First things first, it’s always smart to diversify your portfolio as much as possible. This means having a good mix of investments, including stocks, stock mutual funds, exchanged traded funds, cash, real estate, cash value life insurance, precious metals, and more. The more diverse your portfolio is, the greater the chance that some of your investments will survive no matter what happens.

Go for Guarantees

Guaranteed investments are called guaranteed for a reason- because they’ll always be valid investments, no matter what.  Some good examples of guaranteed investments include:

·         Bank CDs

·         Treasury securities

·         Fixed annuities

·         Indexed annuities

·         Universal life insurance

·         Callable CDs

·         Corporate bonds

·         Preferred stocks

Pay off Your Debts

Finally, make sure that you pay off all or most of your debts. In many cases, money that you do accrue can be “snapped up” by creditors before you ever get to see or use it. Thus, the best way to protect your portfolio and all the hard work you’ve put into it is by limiting your debt so that you don’t have to worry about it at all or, at the very least, can pay it on your own time and with funds you’ve designated for that purpose.

As you can see, there are things you can do to keep your portfolio safe. Utilize these tips for safer investments now!

Related articles

• Investing In The Wrong Stuff (boston.cbslocal.com)

Your Guide to Better Investing

You probably already know that investing is an important and smart step for your financial future. Unfortunately, however, while most people realize that fact, they have no idea how to go about creating a smart investment strategy. Don’t worry, though, with our tips, you can create a measurable strategy that will help your investments to flourish and give you a diverse investing portfolio. 

First things first, it is important that your investment strategy be actually, physically written down. A written strategy will give you a clear plan that you can check back on when you have questions or run into problems. That written strategy can also remind you to “stick to the plan” if you feel like veering off your investment course for whatever reason.

The key to writing and creating your perfect strategy is to, first of all, consider what your long-term goals or objectives are and to incorporate those into your strategy design. You can have a professional help you with this part of the process if you like. Most professionals will listen to what your goals are and then figure out how to work them into your perfect plan.

You also want to think about what your strengths are as an investor. Even if you don’t think you have any, there has to be something that gives you that edge over the competition. Maybe you have “insider knowledge” due to the industry in which you work. Or, maybe you just have a knack for picking stocks. Search deep to find your strengths and then incorporate them into your investment plan.

And, speaking of your investment plan, there should also be a section of it devoted to planning your trading activities. Include rules for buying investments and selling them. Then, look at the trading and investing strategies as a whole and determine if they have what it takes to perform well in a variety of market environments. The best plans are diverse enough to work across a range of markets, but at the very least, your plan should work with your intended or likely market(s).

Finally, make sure you have a way to actually measure your investment plan and how well it’s working. Having some kind of benchmark, which, again, a professional can help you to develop, will allow you to determine whether or not your investment strategy is working. If it is, then you can keep things going the way they are, and, if it’s not, at least you’ll know so you can make adjustments as necessary before your strategy hurts you in any way.

Crafting a great investment plan isn’t easy, but it will be worthwhile. Get help where you need it, follow these tips, and make sure your plan is as thorough and detailed as possible, and you should be just fine.

Related articles

• Long-Term vs. Short-Term Investing (futureadvisor.com)

The Worst Months, Financially Speaking

Wealth management is all about doing the best you can with what you have. You try to earn as much as possible, to spend your money wisely, and to invest where you can. Usually that works out pretty well, but according to S&P Capital IQ, there are three months out of the year when losing money just seems to be par for the course.

Those three months, unfortunately, come one right after the other: August, September, and October. August is when the downward spiral usually begins, with reports stating that investors lose an average of 4.38% in this month. It’s likely that people are simply on vacation or relaxing during this time and thus don’t trade and invest as they usually do.  

In September and October, things usually only get worse, a fact that financial experts blame on the third quarter earnings reporting requirement and the subsequent trend toward mutual funds rebalancing.

Even though these three months may traditionally be bad times for investors, not every investor suffers in the late summer and early fall. Smart investors are those who understand the decline that happens during these months and who prepare and compensate for it throughout the year. If your wealth management strategies have failed to take into account these natural declines, then it may just be time to get some professional, knowledgeable help.

Related articles

• 5 Easy Investment Strategies That Build Wealth (mint.com)

Crowdfunding: Whats it All About?

Are you looking to jump on the “crowdfunding” bandwagon? This trendy method of investing in start-up companies gained momentum after federal legislation was enacted a few years ago, but the basic idea has actually been around for centuries. 

As the name implies, crowdfunding is the practice of pooling small investments from a large group of people to fund a start-up company. This runs counter to the usual method used for initial public offerings (IPOs) where shares of stock are initially sold to the public on a securities exchange. Although IPOs have several advantages, the process is often costly and time-consuming, not to mention the hassles associated with meeting disclosure requirements and other technical rules. In contrast, crowdfunding now offers a simpler solution. 

Prior to 2012, crowdfunding wasn’t as popular because a company had to meet the stringent reporting requirements if the number of shareholders exceeded 500. However, the Jumpstart Our Business Start-ups Act of 2012 (the JOBS Act) increased the limit to 2,000 shareholders. Thanks to the JOBS Act, the age-old premise of crowdfunding has renewed life. 

Virtually every small business – even those that are unincorporated – may use this technique to raise capital. Crowdfunding typically takes place over the Internet through “funding portals.” Some of the most popular websites promoting crowdfunding are Kickstarter, CircleUp, and Fundable. Do your due diligence before making any commitments. Of course, crowdfunding is not without drawbacks. For instance, it could lead to fraudulent activity, shares are illiquid so there’s little opportunity for resale, and investors may be kept in the dark about significant events.

Whether you’re considering an investment or trying to raise funds for your firm, proceed with caution.

Related articles

• 3 Other Ways Entrepreneurs Can Use Crowdfunding (entrepreneur.com)

What to Look for in an Investment Advisor

You probably already know how important it is to have a good investment advisor whom you can trust to put your money to work for you, but, if you’re like most people, you likely haven’t gotten around to choosing that advisor just yet. Time, however, is money, and it’s necessary for you to find a trustworthy professional who can assist you sooner rather than later.  

So, what should you look for in an investment advisor? Well, for starters, you want someone who charges a reasonable amount for his or her services and who makes all prices and expectations clear from the start. There should not be any surprises when it comes to how much you will be paying for financial services. Also, your advisor’s main goal should not be to sell you products and/or to make a profit off of you!

You also need a thoroughly licensed and qualified investment advisor. Luckily for you, you can find an advisor who meets all of these qualifications (and then some!) at Platinum Financial Associates of Naperville.

Related articles

• Financial Advisor Background Checks Omit Crucial Information Under "Veil of Secrecy" (thestreet.com)

Invest Wisely

Lifehacker.com recently released a list of tips and strategies for making smart investments. While many different ideas were presented as part of the list, some of the best included setting up strong investment accounts and investing in low-cost stock index funds.

When it comes to investment accounts, you always want to choose tax-savvy accounts, such as 401ks and Roth IRAs, rather than accounts that face heavy taxation. Similarly, investing in bond funds can be smart, especially if you’re not someone who is very comfortable taking risks in the stock market.

If any (or all!) of these tips are a little confusing to you, know that you’re not alone. Many people have trouble navigating and making sense of the different investment options they have available. Fortunately, there are financial firms that offer investment services to help you make the smartest choices possible. You can find great investment services at Platinum Financial Associates of Naperville, so give the company a call today!

Related articles

• 5 Strategies for Shopping Smart Online (community.ally.com)