3 Things to Consider Before Making an Investment
There is no etched-in-stone formula to follow to achieve financial well-being and acquire wealth, but few people reach these goals without having their money work for them. Certainly, working hard, earning a good living, living below one’s means and saving on a consistent basis are typical common denominators, but those efforts alone have limitations. True financial growth comes through wise investing. The key consideration is how to determine what “wise investing” means. As each investor is unique and the needs of the individual investor change over time, here are three things to consider before making an investment.
Are you ready to invest?
This means making certain you are financially fit enough to invest and you have a clear understanding of what your investment goals are. People who have significant debt and little or nothing set aside in their emergency fund may be better off sitting on the sidelines when it comes to the investment game until those deficiencies are corrected. Knowing what the purpose or purposes for investing are dictate whether you should seek short or long term investments or some combination of both.
Do you understand the investment options?
Everyone knows that other than deposit accounts, there are no guarantees on any investment, and the risk of loss is a reality. Most understand that if they are employing a long term strategy there is a better chance to make money because up and down economic cycles come and go, whereas hoping to make a fast buck in a short term investment can be extremely volatile. That said, few investors have the personal knowledge or ability to evaluate each of the various investment categories and the numerous individual options within those categories to come up with a cohesive financial strategy with the potential for success.
Will you benefit from a professional asset management company?
Without a doubt, there is no shortage of companies that offer investment services with claims of healthy profits for those who sign up. However, not all investment companies are created equal. After verifying that the company’s licenses, certifications, and credentials are satisfactory, look to these issues:
- Their approach to investing: It is important to understand their philosophy but crucial they understand yours and listen to your concerns.
- Their level of client contact: You need to be sure the company’s interest in you is not just when courting your business but involves an ongoing, regular dialogue.
- The types of services the company provides: Many investors need assistance with other services in addition to or in conjunction with asset management. For instance, an investor in commercial or residential real estate can benefit from integrated services such as financing, sales and acquisitions, and property management.
Primior has a proven track record across all markets. But we also understand each investor has unique circumstances and goals. Allow us the opportunity to speak with you about how to achieve your level of financial comfort and freedom.