Financial World – Basic Training
New investors, or investors who simply aren’t seasoned in
the areas of finance, sometimes struggle to make sense of the sea of options
available to them.
Before you can create a successful portfolio that aligns
with your specific financial situation and goals, you must first have a basic
understanding of the investment vehicles (stocks, bonds, mutual funds), as well
as concepts such as risk vs. reward and time horizon. Then you have to have a general idea of what
the market is doing, how it is reacting, and what those forces causing the
reaction are. You must then marry this
with your own beliefs, predictions, and goals, then continuously monitor all of
the above.
To make it even more challenging, more and more options are
becoming available to investors, and our economic and geopolitical worlds
continue to shift at an ever increasing pace.
It is no wonder so many are admitting they would benefit from the advice
of financial professionals (see survey results from our last blog entry).
Our first responsibility as financial advisors is to educate
investors. This duty is ongoing, and is
at the forefront of our minds every day.
Here is an article which is great for beginning investors. Written by John DeFeo of the Street.com, it captures
some basics and links to very good resources.
Enjoy!
