Control the Investment Market
The act of investment is at its cornerstone, gambling. I might add so is life! We make choices, whether to smoke or not, engage in dangerous sports, gamble on marriage, even choosing friends. Investing for gain, is a parallel. A best guess of the future. What criterion should we use to tip the scales in our favor?
The people are important! The issuers or advisors of the offering, as well as the management personnel of the business we are investing in. Usually, we are advised by a person we went to school with, maybe a trusted family friend or contact we have known who is reliable. In this “new investment” market we are somewhat vulnerable. With internet and high-speed communication opportunities are here now, but gone tomorrow, the pace is frightening. The new investment market is world-wide, making investment friends needs be almost a “warlike” exercise. We have to make fast friends to survive, and prosper. When everybody says “do it now”, instead slow down! Make your first determination based on the people involved. No right-minded advisor should assume you are going to invest immediately. I would like you to have conversations, see some correspondence, understand the mindset and goals, before investing.
Understand the investment. Do not take assurances from those who proposed to be competent. Make sure you understand. Ask questions specifically and repeatedly. Will all questions be answered affirmatively? Probably not. There are certain generic risks, both in time frame and yield spread, everyone in an investment should be conscience of. Inability to satisfy questions will not necessarily dis-qualify the investment opportunity. Personal determination, sometimes a forgotten item these days, will benefit you.
Controlling your investments means knowing your investment pace. How long is your investment time frame? Are we seeking the long-term accrual retirement income or short-term monthly income stream? Anything over 10 years is long-term investment. We should be conscience of interest rate variables, time vs. money decay should be adjusted and thought out. As we sort out our personal investment agenda, we turn our thought to the prospects which we can invest in. Not all good or great investments are suitable to each investor. If you have college tuition to be prepared for in two years, a five-year investment overlapping this event will not be advantageous. I would not assume I could borrow or sell this investment on suitable terms to accomplish this. With work, wide variety of investments can mitigate these issues. This can be long-term growth stocks, bonds, short-term equities, or C.D.’s, or whatever tickles your fancy. Unfortunately, investing in the right securities is just like work, It might be tedious. Your money will go out and reproduce itself, but it will need guidance from you!