A brokerage firm or a broker should work towards wisely investing the funds of the client in different investment options in order to maximize profits. Apart from thorough professional knowledge, data interpretation, market analysis and understanding the trends in the market, a broker should have good communication skills. A broker should use his expertise but conform to the needs of the client.
A brokerage firm must always be transparent, clear, prompt and effective in communicating with the client on various aspects. The firm is in custody of the client's funds. It is imperative that the firm keeps the client informed at all times of the fund status. Keeping the overall goal of the client in mind, the options chosen on the client's behalf must be communicated. A feeling of not knowing where, how or when the client's funds are invested is a clear sign of unhealthy communication.
The broker working on behalf of the client should have trading qualities similar to the client. An aggressive client should be served by an aggressive broker. Alternately, a safe player should have a safe broker. It is then that the goals of the broker and the client will match.
Accessibility to one's trading account to get frequent updates on the fund and profit status should be a priority. This ensures transparency in functioning. With most firms and brokers being online, it is easier to know the account status on a minute to minute basis also.
One should engage a firm or broker depending on one's own requirement using references, information from forums, and online checks.
Wednesday, September 1, 2010
Wealth Manager
Many wealth managers approach investors positioning themselves as "trusted advisors". Can you develop this type of relationship with someone who is compensated for selling product, or should you seek out a wealth manager who operates without conflicts of interest between the firm and the client? As more independent advisors arise, this question will present itself more frequently to investors.
One of the biggest complaints investors have is that they feel they are being "steered" towards specific investments by their advisor. Frequently, these products are manufactured and/or managed by the firm that employs the relationship manager. They can take the form of mutual funds, managed accounts, or partnerships. This is true for brokerage firms, investment banks, and trust banks. In many instances, the compensation of the "trusted advisor" is largely impacted by how much proprietary product he or she can sell. With that type of motivation in place, it is fair for investors to ask if their best interests are being placed first.
Some large financial services firms responded to investor's lack of trust by creating a "platform" that includes a limited number of outside advisors side by side with their own offerings. This is frequently presented in the form of a "wrap" program that entails a large, all-encompassing fee. The wrap fee includes compensation to the investment manager, the advisor, and the advisor's employer. These layers of fees add up. While convenient, it may prove to be an expensive proposition to the investor. As a result, many investors are gravitating to fee-only independent wealth managers who offer open architecture in a conflict-free manner.
The role of a fee-only advisor is quite different from that of the more traditional relationship between the client and his broker or trust officer. A fee-only wealth manager does not and will not manufacture or sell investment products; their only source of income comes directly from their clients. They will refuse compensation from investment managers, insurance companies, banks, and other sources of investment merchandise. His or her role is to work with you to structure a multi-manager portfolio that fits your specific investment needs. The advisor will likely spend time with you to understand your goals, objectives, and risk tolerance long before the investing process begins. Many fee-only advisors have Certified Financial Planners on staff. These professionals will work with you to ensure that you have the right structure around your assets (i.e. wills, trusts, etc.) to help you meet you your long-term financial goals in the most tax efficient way possible.
It is becoming more difficult for investors to pinpoint outstanding investment talent. There are so many choices that one can become overwhelmed. Fee-only wealth managers offer true open architecture. They are not limited by an investment platform. This enables them to seek out the best and brightest managers in all asset classes. You should expect that your wealth manager has conducted a thorough amount of due diligence on each of the managers in the suggested portfolio. The advisor should suggest separate accounts over mutual funds. Separate accounts are less expensive and more tax efficient than commingled funds. Since your advisor is not compensated for transactions in your account, he or she will probably recommend that your assets be held at a large discount brokerage firm. This will help minimize overall costs to you. While you will be receiving monthly statements from your brokerage firm, the wealth manager should provide consolidated performance reporting on a monthly basis.
To review, here is what individual investors should expect from an independent, fee-only wealth manager:
* A thorough independent appraisal of your current investment portfolio,
* A discussion about what you want to accomplish with your investment capital,
* An examination of the structures around your assets such as wills, trusts, and retirement plans,
* A well-designed asset allocation model that fits your investment goals,
* A suggested multi-manager portfolio that foots with your goals and objectives,
* Thorough and ongoing due diligence on each of the managers in your portfolio,
* Face-to-face meetings at least twice a year to update you on performance and review your objectives,
* A strong effort to reduce investment costs (i.e. manager fees, brokerage commissions, etc.),
* Monthly performance statements,
* No pressure to buy or sell any investment product,
* A fee based upon the amount of assets under advisement.
Fee-only wealth managers offer an attractive alternative to traditional sales-based financial relationships. You have the comfort of knowing that the advisor is working in your best interests and that all recommendations come from a desire to do an excellent job for you.
One of the biggest complaints investors have is that they feel they are being "steered" towards specific investments by their advisor. Frequently, these products are manufactured and/or managed by the firm that employs the relationship manager. They can take the form of mutual funds, managed accounts, or partnerships. This is true for brokerage firms, investment banks, and trust banks. In many instances, the compensation of the "trusted advisor" is largely impacted by how much proprietary product he or she can sell. With that type of motivation in place, it is fair for investors to ask if their best interests are being placed first.
Some large financial services firms responded to investor's lack of trust by creating a "platform" that includes a limited number of outside advisors side by side with their own offerings. This is frequently presented in the form of a "wrap" program that entails a large, all-encompassing fee. The wrap fee includes compensation to the investment manager, the advisor, and the advisor's employer. These layers of fees add up. While convenient, it may prove to be an expensive proposition to the investor. As a result, many investors are gravitating to fee-only independent wealth managers who offer open architecture in a conflict-free manner.
The role of a fee-only advisor is quite different from that of the more traditional relationship between the client and his broker or trust officer. A fee-only wealth manager does not and will not manufacture or sell investment products; their only source of income comes directly from their clients. They will refuse compensation from investment managers, insurance companies, banks, and other sources of investment merchandise. His or her role is to work with you to structure a multi-manager portfolio that fits your specific investment needs. The advisor will likely spend time with you to understand your goals, objectives, and risk tolerance long before the investing process begins. Many fee-only advisors have Certified Financial Planners on staff. These professionals will work with you to ensure that you have the right structure around your assets (i.e. wills, trusts, etc.) to help you meet you your long-term financial goals in the most tax efficient way possible.
It is becoming more difficult for investors to pinpoint outstanding investment talent. There are so many choices that one can become overwhelmed. Fee-only wealth managers offer true open architecture. They are not limited by an investment platform. This enables them to seek out the best and brightest managers in all asset classes. You should expect that your wealth manager has conducted a thorough amount of due diligence on each of the managers in the suggested portfolio. The advisor should suggest separate accounts over mutual funds. Separate accounts are less expensive and more tax efficient than commingled funds. Since your advisor is not compensated for transactions in your account, he or she will probably recommend that your assets be held at a large discount brokerage firm. This will help minimize overall costs to you. While you will be receiving monthly statements from your brokerage firm, the wealth manager should provide consolidated performance reporting on a monthly basis.
To review, here is what individual investors should expect from an independent, fee-only wealth manager:
* A thorough independent appraisal of your current investment portfolio,
* A discussion about what you want to accomplish with your investment capital,
* An examination of the structures around your assets such as wills, trusts, and retirement plans,
* A well-designed asset allocation model that fits your investment goals,
* A suggested multi-manager portfolio that foots with your goals and objectives,
* Thorough and ongoing due diligence on each of the managers in your portfolio,
* Face-to-face meetings at least twice a year to update you on performance and review your objectives,
* A strong effort to reduce investment costs (i.e. manager fees, brokerage commissions, etc.),
* Monthly performance statements,
* No pressure to buy or sell any investment product,
* A fee based upon the amount of assets under advisement.
Fee-only wealth managers offer an attractive alternative to traditional sales-based financial relationships. You have the comfort of knowing that the advisor is working in your best interests and that all recommendations come from a desire to do an excellent job for you.
Structured Products
Structured Products are... well... structured! That means they are put together by a product provider for a particular type of investor and use. They can be used, for example, to provide a regular known income, to give you the opportunity for a higher return than you would get from savings, or to control volatility in a portfolio.
So here's some basics...
Retail Structured products include both deposits and investments. They achieve their objective by offering different levels of risk, return and protection, and by basing the performance on an appropriate index such as the FTSE 100 or S&P 500 - although other indices can also be used.
Plans last a specific amount of time - typically 3 to 6 years. Products can provide full capital protection, or partial capital protection with the chance of an enhanced return. In some cases the maximum return is limited in order to limit the loss if the index goes down.
Different types of product are appropriate at different times in the economic cycle, and certain types do not require the stock market to rise in order to give you your return. And if you have particular views about the future progress of the markets in general or one index in particular, then it may be possible to find a product to match your view.
One other interesting class of structured product is the "kick-out" variety. If the index which the product is linked to reaches (or stays above) a certain level, then the product may kick-out, normally on an anniversary, and return your investment with some growth. This growth is generally very good, but you have to be able to cope with the product kicking-out or not kicking-out.
Don't forget to consider the risks...
As well as being dependent in some way on an index, the returns available from a structured product rely on the provider being able to return your money. Generally the plan provider who put it together will use a separate organisation - the "counterparty" (typically an investment bank) - to underwrite it, and you are dependent on that counterparty still being able to pay up when the end of the term comes, or to pay any income in the interim.
You should also consider any compensation scheme available. Since 2008 we have all become a lot more aware of that. For structured products the situation is not simple, though, and generally if the counterparty fails, then no compensation would be due.
So are they for you?...
Structured products do provide a useful alternative to give you some diversity in your portfolio. Generally they should be seen as an extra to an existing portfolio and not a replacement for a more traditional investment.
Since there are so many types, it is worth taking professional advice before diving into this world full of its own terminology! But depending on your circumstances, you may find a Structured Product or two a rewarding addition to your portfolio.
So here's some basics...
Retail Structured products include both deposits and investments. They achieve their objective by offering different levels of risk, return and protection, and by basing the performance on an appropriate index such as the FTSE 100 or S&P 500 - although other indices can also be used.
Plans last a specific amount of time - typically 3 to 6 years. Products can provide full capital protection, or partial capital protection with the chance of an enhanced return. In some cases the maximum return is limited in order to limit the loss if the index goes down.
Different types of product are appropriate at different times in the economic cycle, and certain types do not require the stock market to rise in order to give you your return. And if you have particular views about the future progress of the markets in general or one index in particular, then it may be possible to find a product to match your view.
One other interesting class of structured product is the "kick-out" variety. If the index which the product is linked to reaches (or stays above) a certain level, then the product may kick-out, normally on an anniversary, and return your investment with some growth. This growth is generally very good, but you have to be able to cope with the product kicking-out or not kicking-out.
Don't forget to consider the risks...
As well as being dependent in some way on an index, the returns available from a structured product rely on the provider being able to return your money. Generally the plan provider who put it together will use a separate organisation - the "counterparty" (typically an investment bank) - to underwrite it, and you are dependent on that counterparty still being able to pay up when the end of the term comes, or to pay any income in the interim.
You should also consider any compensation scheme available. Since 2008 we have all become a lot more aware of that. For structured products the situation is not simple, though, and generally if the counterparty fails, then no compensation would be due.
So are they for you?...
Structured products do provide a useful alternative to give you some diversity in your portfolio. Generally they should be seen as an extra to an existing portfolio and not a replacement for a more traditional investment.
Since there are so many types, it is worth taking professional advice before diving into this world full of its own terminology! But depending on your circumstances, you may find a Structured Product or two a rewarding addition to your portfolio.
Sunday, August 1, 2010
Stock Market
The stock market in India has turned highly volatile of late. A tremendous rise in points in one day is bringing a heavy downfall the very next day. This high degree of volatility has made the life of investors miserable as they are incurring massive speculative losses. In this crucial juncture, effective share tips have become the need of the hour.
Before venturing into share trading, novices should have a complete understanding of the specific terminology of this business. It is imperative to understand the intricacies of stock trading, so that you can judge the market and its functioning to perfection. Similar to any form of investment, more and more knowledge about share trading can boost your chances of tasting success. One way to expand your knowledge base is to acquire good trading tips from seasoned investors, traders, trade magazines and numerous online stock research and advisory companies.
Online research and advisory companies having a formidable relationship with countless stock market brokers and traders offer you vast amounts of information in the form of option tips, nifty tips and intraday tips. They generally carry out extensive research on share market by revolving around company news, economy news, fundamental analysis and technical analysis.
Option trading is a derivative instrument that involves the trading of options over an exchange. In place of trading stocks, traders trade the options presented with these stocks. Options are available in two categories like call options (options to buy) and put options (options to sell). Option trading is frequently confused with futures trading. But, both are completely different having their own distinct characteristics. The use of limitless option tips can open the door to richness for you can derive substantial profits from both upward and downward movement of the market or even when the inherent stock remains stagnant. Option trading with effective strategies can provide you exemplary protection against loss, exemplary potential for profits and exemplary flexibility even in an adverse situation.
Intraday trading, on the other hand, refers to a position in a security that is opened and closed in the same trading day. Though it appears to be quite straightforward and remunerative, traders need to be highly alert and agile to the latest developments. Therefore, there are certain intraday tips that must be kept in mind always. For example, it is not obligatory that a stock running weak today at the time of intraday trading might bear the same fate tomorrow as well; similarly, a stock is going strong now might not be the same tomorrow. Another important trading tip is trade in stocks with high liquidity all the time i.e. that feature huge volume since entry and exit can turn out to be very quick in such stock shares.
Share tips can lend a helping hand to all those investors and traders who fail to make money in the stock market due to short of knowledge, experience and strategy. Using these tips, they can become smarter and churn out money in both ascending and descending market.
Before venturing into share trading, novices should have a complete understanding of the specific terminology of this business. It is imperative to understand the intricacies of stock trading, so that you can judge the market and its functioning to perfection. Similar to any form of investment, more and more knowledge about share trading can boost your chances of tasting success. One way to expand your knowledge base is to acquire good trading tips from seasoned investors, traders, trade magazines and numerous online stock research and advisory companies.
Online research and advisory companies having a formidable relationship with countless stock market brokers and traders offer you vast amounts of information in the form of option tips, nifty tips and intraday tips. They generally carry out extensive research on share market by revolving around company news, economy news, fundamental analysis and technical analysis.
Option trading is a derivative instrument that involves the trading of options over an exchange. In place of trading stocks, traders trade the options presented with these stocks. Options are available in two categories like call options (options to buy) and put options (options to sell). Option trading is frequently confused with futures trading. But, both are completely different having their own distinct characteristics. The use of limitless option tips can open the door to richness for you can derive substantial profits from both upward and downward movement of the market or even when the inherent stock remains stagnant. Option trading with effective strategies can provide you exemplary protection against loss, exemplary potential for profits and exemplary flexibility even in an adverse situation.
Intraday trading, on the other hand, refers to a position in a security that is opened and closed in the same trading day. Though it appears to be quite straightforward and remunerative, traders need to be highly alert and agile to the latest developments. Therefore, there are certain intraday tips that must be kept in mind always. For example, it is not obligatory that a stock running weak today at the time of intraday trading might bear the same fate tomorrow as well; similarly, a stock is going strong now might not be the same tomorrow. Another important trading tip is trade in stocks with high liquidity all the time i.e. that feature huge volume since entry and exit can turn out to be very quick in such stock shares.
Share tips can lend a helping hand to all those investors and traders who fail to make money in the stock market due to short of knowledge, experience and strategy. Using these tips, they can become smarter and churn out money in both ascending and descending market.
Nifty Tips for You
The stock market is one of the best places to invest your money in. People have both earned and lost a lot of money online. The stock market is a place where knowledge is power and knowing when and where to spend your money can be the difference between earning money and losing it. Here are some Trading Tips if you're a new investor, or even if you're a seasoned buyer looking for a new trick or two.
To start off with, finding Intraday Tips can be quite hard. In case you're not ready to spend a lot of time researching the share market, then it's better off if you apply for a good online site that can provide you with buy and sell tips that are delivered promptly to you. These sites will probably provide Option Tips as well.
With that said, it's imperative to understand the stock market before you can really begin trading. The NSE [National Stock Exchange] is certainly not a place you can enter without knowing what's happening. Very simply put, you earn money by selling stocks at a price higher than the one which you bought them at. This is tricky because the prices are constantly fluctuating, and predicting them takes extensive research, which is why most people prefer to just go with an online database that provides Share Tips.
Basically, buying takes place at four price points or times in the day. These are the price at opening, the intraday high price, price at closing and the intraday low price. The very first step is to decide the company whose shares you want to purchase. You then need to research and understand the environment in which they function. Placing some consideration on the segment also helps, as the prices in different segments fluctuate differently.
Try and invest in a company that has a diverse portfolio. Liquidity loss is greatly reduced in such a situation and this can really be a deal breaker. Be very cautious if you wish to invest in a company that has had a reputation of being relatively inactive for extended periods of time. These may result in you losing a lot of money, and in general, it's just best to not invest in them altogether. Look for a company that is constantly listed and active.
When you are studying the company's portfolio, pay more attention to the long term plans. Short term plans rarely stay constant, and should not be a deciding factor. Long term plans on the other hand can completely alter how a company's stocks are affected. The management is also something to look at. A bad public image, chances of any setbacks, impending disaster, all these are things to be avoided like the plague. Apple recently faced a large dip in share prices due to the fiasco of one of their smartphones' reception problems.
Overall, the share market can be a great place to trade if you are careful how you do it. Trade smart, and you can easily make a living out of it.
To start off with, finding Intraday Tips can be quite hard. In case you're not ready to spend a lot of time researching the share market, then it's better off if you apply for a good online site that can provide you with buy and sell tips that are delivered promptly to you. These sites will probably provide Option Tips as well.
With that said, it's imperative to understand the stock market before you can really begin trading. The NSE [National Stock Exchange] is certainly not a place you can enter without knowing what's happening. Very simply put, you earn money by selling stocks at a price higher than the one which you bought them at. This is tricky because the prices are constantly fluctuating, and predicting them takes extensive research, which is why most people prefer to just go with an online database that provides Share Tips.
Basically, buying takes place at four price points or times in the day. These are the price at opening, the intraday high price, price at closing and the intraday low price. The very first step is to decide the company whose shares you want to purchase. You then need to research and understand the environment in which they function. Placing some consideration on the segment also helps, as the prices in different segments fluctuate differently.
Try and invest in a company that has a diverse portfolio. Liquidity loss is greatly reduced in such a situation and this can really be a deal breaker. Be very cautious if you wish to invest in a company that has had a reputation of being relatively inactive for extended periods of time. These may result in you losing a lot of money, and in general, it's just best to not invest in them altogether. Look for a company that is constantly listed and active.
When you are studying the company's portfolio, pay more attention to the long term plans. Short term plans rarely stay constant, and should not be a deciding factor. Long term plans on the other hand can completely alter how a company's stocks are affected. The management is also something to look at. A bad public image, chances of any setbacks, impending disaster, all these are things to be avoided like the plague. Apple recently faced a large dip in share prices due to the fiasco of one of their smartphones' reception problems.
Overall, the share market can be a great place to trade if you are careful how you do it. Trade smart, and you can easily make a living out of it.
Annuity Payment
There are many financial institutions that offer cash for annuity payment. They will give you lump sum cash in exchange for your annuity. Annuity is a financial investment that many people make either in single lump sum or through installments, which can be completed in 20 to 25 years.
After the completion of payment, the company from which you paid annuity premiums will pay you for your entire life or for a fixed number of years, either monthly, quarterly, semi-annually and annually a fixed sum.
Annuity is a good investment to secure your future after retirement. But there are times in your life where you face emergency situations that require the use of immediate cash. Maybe you have set aside sufficient funds for emergency uses.
Depending on the nature and gravity of the situation, you may run out of cash. If you have no other savings to use, or if your non-emergency savings are not enough, you may have the option of selling your annuity payments.
Having an emergency situation is not the only reason why you may consider converting annuity payments into cash. Many people sell their annuity investment in order to purchase a real estate property, a dream car, venture into business, or to finance an education.
There are institutions which offer the services of purchasing the payments you have made for your annuity, and this can solve your immediate financial worries. Annuities, though may serve a significant role in meeting your plans, they are not flexible and capable of solving immediate financial problems.
In the United States of America, more than thirty state governments decided that their residents should have access to this important resource and allow for the smooth transfer of the annuitant's rights to receive payments when it is deemed to be in his best interest.
In all fifty United States, you are able to convert your payments into cash. If you are interested in this undertaking, you may get a free annuity analysis provided by the institutions.
Some financial institutions buy other annuities such as non-structured insurance annuities, single premium immediate annuities, and investment annuities.
Cash for annuity is flexible. You have the option of choosing the number of payments you would like to sell, the funding company that will provide for your lump sum payment, and several options for payment.
Normally, after you have submitted your information, it will take 6 to 8 weeks for you to cash in your annuities. Many financial institutions will bid for your payments, and they will offer you more flexible terms and payment options.
You have to bear in mind though that the lump sum you will receive from financial institutions for annuity payment will be lower than what you would have received once your premium payment matures. This is one way that financial institutions earn their profit.
After the completion of payment, the company from which you paid annuity premiums will pay you for your entire life or for a fixed number of years, either monthly, quarterly, semi-annually and annually a fixed sum.
Annuity is a good investment to secure your future after retirement. But there are times in your life where you face emergency situations that require the use of immediate cash. Maybe you have set aside sufficient funds for emergency uses.
Depending on the nature and gravity of the situation, you may run out of cash. If you have no other savings to use, or if your non-emergency savings are not enough, you may have the option of selling your annuity payments.
Having an emergency situation is not the only reason why you may consider converting annuity payments into cash. Many people sell their annuity investment in order to purchase a real estate property, a dream car, venture into business, or to finance an education.
There are institutions which offer the services of purchasing the payments you have made for your annuity, and this can solve your immediate financial worries. Annuities, though may serve a significant role in meeting your plans, they are not flexible and capable of solving immediate financial problems.
In the United States of America, more than thirty state governments decided that their residents should have access to this important resource and allow for the smooth transfer of the annuitant's rights to receive payments when it is deemed to be in his best interest.
In all fifty United States, you are able to convert your payments into cash. If you are interested in this undertaking, you may get a free annuity analysis provided by the institutions.
Some financial institutions buy other annuities such as non-structured insurance annuities, single premium immediate annuities, and investment annuities.
Cash for annuity is flexible. You have the option of choosing the number of payments you would like to sell, the funding company that will provide for your lump sum payment, and several options for payment.
Normally, after you have submitted your information, it will take 6 to 8 weeks for you to cash in your annuities. Many financial institutions will bid for your payments, and they will offer you more flexible terms and payment options.
You have to bear in mind though that the lump sum you will receive from financial institutions for annuity payment will be lower than what you would have received once your premium payment matures. This is one way that financial institutions earn their profit.
Thursday, July 1, 2010
Investing Mistakes
When it comes to investing-it's a risky business. Just like gambling you never really know what you're going to wind up with or how successful you'll be. However, with great risk comes great reward and many investors realize this early on. In order to minimize your risk as much as possible it's a good idea to avoid any potential mistakes that you could fall into. Here are the 3 mistakes you can't afford to make.
Mistake #1 - Getting started without first knowing the basics. If you're brand to investments then you'll want to brush up on some basic knowledge first. Simply handing your money over to a brokerage firm or finding your way in the dark is a great way to go broke fast. That being said, taking the time and effort to actually learn about how to be a good investor is extremely important for being successful. Jumping in as soon as possible without any background knowledge can only leave you discouraged and broke.
Mistake #2 - Ignoring the urgency of diversifying. Many people blindly begin to invest in whatever they think will have a decent return and maybe in the short term this is a good idea, depending on your goals. However, long term speaking it's a better idea to diversify your assets and get your fingers in a lot of different things. This is a great way to protect against losses and increase performance over a longer period of time.
Mistake #3 - Making investments without a clear goal. This is a major mistake that many beginners make. Not having a clear goal or objective for your portfolio is a sure fire way to be perpetually distracted and passive about your investments. Make sure you have a clear and set goal along with a deadline to have your goal completed by. This will help keep you on track and working towards your objective.
Investing is a terrific way to grow your money and get a good return but always try to think outside the box and see where else you can increase your financial growth. It's also important to remember not to make other mistakes that can be easily avoided. Always make sure you do your research on new investments and minimize your risks at all times to make sure you reduce the potential losses from a poor decision. Through being smart with your investments and avoiding these mistakes you can have great long term success.
Mistake #1 - Getting started without first knowing the basics. If you're brand to investments then you'll want to brush up on some basic knowledge first. Simply handing your money over to a brokerage firm or finding your way in the dark is a great way to go broke fast. That being said, taking the time and effort to actually learn about how to be a good investor is extremely important for being successful. Jumping in as soon as possible without any background knowledge can only leave you discouraged and broke.
Mistake #2 - Ignoring the urgency of diversifying. Many people blindly begin to invest in whatever they think will have a decent return and maybe in the short term this is a good idea, depending on your goals. However, long term speaking it's a better idea to diversify your assets and get your fingers in a lot of different things. This is a great way to protect against losses and increase performance over a longer period of time.
Mistake #3 - Making investments without a clear goal. This is a major mistake that many beginners make. Not having a clear goal or objective for your portfolio is a sure fire way to be perpetually distracted and passive about your investments. Make sure you have a clear and set goal along with a deadline to have your goal completed by. This will help keep you on track and working towards your objective.
Investing is a terrific way to grow your money and get a good return but always try to think outside the box and see where else you can increase your financial growth. It's also important to remember not to make other mistakes that can be easily avoided. Always make sure you do your research on new investments and minimize your risks at all times to make sure you reduce the potential losses from a poor decision. Through being smart with your investments and avoiding these mistakes you can have great long term success.
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