Source: Keith Fitz-Gerald¸ Chief Investment Strategist¸ Money Morning
The traditional ways of saving money aren’t enough anymore. Over the past few years¸ it’s more than likely that your portfolio took a huge hit… your house lost value… and all the dollars you have tucked away for a rainy day lost value with each passing day. Whether you realize it or not¸ you’re getting burned. It’s time to look at investing in a completely new way. The old asset allocation models your stockbroker once promised would never lose money (How did that work out for you¸ by the way?) are the way of the past. The “growth stocks” aren’t growing. The “value stocks” have lost their value. You need a new plan. And we have it for you. Here at Money Map Press¸ we use a 50-40-10 model that guarantees real growth from a solid base of investments and reduces your exposure to risk. To learn more about this strategy – and what the Money Map Report is recommending right now¸ click here. Let’s get started.
Figure Out Your Risk Tolerance
Not everybody wants to skydive. Some people are content with low-risk¸ low-return investments.
Some people love the thrill of risking it all for the chance their money will triple or more.
It’s easy to be seduced by visions of high returns. But¸ take a little time to think about your risk tolerance. Think about when you’ll need the money your investing. Think about how comfortable you are with risk. And then¸ make sure your broker knows exactly what your risk tolerance is.
One way to get a good gauge on your risk tolerance is to use one of the risk tolerance tools that are available online. A simple Google search should turn up dozens of results.
Check them out to determine how risky you’re willing to be.
Find the Right Broker
The major brokerage firms spend a lot of money on television ads telling you why they are the best. How they have the best tools. And that they are the ones who will look out for you.
Well¸ if that were true¸ that financial crisis we’re all recovering from wouldn’t have happened.
So¸ when you pick your broker¸ take everything they say with a grain of salt. Try to find someone you trust – someone you feel comfortable with and someone who isn’t going to push you into any investment that you don’t feel comfortable with.
When scouting brokers¸ never gloss over an asterisk – especially when it’s placed next to an advertised deal. The fine print it refers to could mean that you’re signing up for higher fees than you realize.
Don’t be afraid to call the brokerage up and ask every question you have. Sometimes brokers talk like doctors or computer repairmen in that they have their own language they strategically use to intimidate their customers. Keep them in check by writing down every question you have and checking them off only if you understand their answer completely.