New investors might have a hard time figuring out where to put their money. The sheer variety of investment vehicles available to people with savings in the bank ensures no one ever has be feel options are limited. Stocks, bonds, precious metals, currency, ETFs, and more are available to those who want to see their net worth grow.
Being a bit too over-anxious about investing, however, is not the best attitude to have. Rushing in to invest money could lead to major losses, and this is clearly not a good thing. Brad Reifler is a smart man when it comes to the subject of investing.
As the executive in charge of Forefront Capital, Reifler has to make good decisions. To help others make equally good decisions, Reifler came up with a list of five solid tips for investing. These tips (originally published in a Reuters press release) could save both new and long-time investors a lot of trouble.
From his Twitter the first tip Reifler mentions is definitely wise. He warns people about being very careful about how they invest their money. Not everyone looks at the overall market conditions, risks, and other factors. Doing so is strongly advised prior to putting any money into the mix.
The second tip casually reminds people who are investing that the goal of investing is to gain a return on one’s investment. Invested money is supposed to grow. Those who are not concerned about the safety of their money are going to lose it. Putting funds into high-risk endeavors or volatile vehicles is not a safe strategy. Prudence is a better path to follow.
The third tip may be surprising to newbies, but those who have been involved in investing for some time realize the advice is sage. Reifler says to avoid putting all investment money into the stock market. There are scores of other places in which money can be invested. To put 100% of one’s money in the stock market really is risky. If the market falls like it did in 2008, nothing is left to hedge the assets.
The fourth bit of advice is something a lot of people learned the hard way. Always be completely positive that the person handling the money – a broker, financial manager, hedge fund manager, and the like – is trustworthy. As the news sadly reports, trusting the wrong person with your money leads to disaster.
The fifth and final tip is the suggestion to really define why you are investing. If you do not know why you are investing your money, a successful outcome is going to be elusive.
Reifler’s advice is hard to argue with. The tips all make sense. About.me has further tips from Brad’s career and personal life.