I have read many articles over the past few months that discussed the investing opportunities available to the average investor. The on-line trading houses allow investors to move in and out of strategies easily and you may feel this is the correct.
Investment Options Overload
There are a tremendous amount of investment choices at an investor’s disposal. Mutual funds, stocks, bonds, UIT’s, ETF’s, commodities, options and numerous other derivatives that can all be used to build wealth. However, just because these choices are available doesn’t mean that all investors should use every one. Many of these investment vehicles are complex and complicated for the novice or even seasoned investor to understand. In the end, it may be best to stay with a few investment types and let your financial advisor guide you in these areas, that way you may be able to maximize your returns and minimize your losses over the long term.
Investor Information Overload
In today’s investing environment we have access to all sorts of information; it can be very easy to be drawn to do anything and everything possible to build up wealth. You may have heard Kramer claiming that a particular stock is ready to bust out or another pundit say that gold is ready to rally, so you think about taking their advice. Then you read an article about trading option contracts is a great way to get big returns in a short period, so you think about changing strategies. The possibility of a get rich quick strategy is always available but often are losing situations for the average investor.
Importance of Understanding Investments
You may be infatuated by the potential for large returns in some of the investments mentioned above, but you should avoid exposing yourself to any assets that you do not understand. Most average investors simply do not have the time to become experts in all investment areas; it is hard and takes time. You probably have other obligations: career, family, recreation, so becoming an expert with your limited available time can be difficult. In the end let the professionals at Kabler/Thomas Financial Group guide you to an appropriate mix of investments for your situation.
Stick With What You Know
[pullquote style=”left” quote=”dark”]Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make.
-Donald Trump [/pullquote]
It is best to stick to what you know when it comes to increasing your wealth. You may hear stories of how friends or family hit it big investing in an asset class that you don’t understand, that doesn’t mean that investment is right for you. Let the investment advisers at Kabler/Thomas Financial Group help you navigate unfamiliar territory. We welcome your questions and we thank you for the opportunity to help meet your needs.