November 5, 2013

When considering ANY investment, what questions should you ask prior to making the decision on whether to do it?

3 thoughts on “November 5, 2013”

  1. Katherine Graham says:

    How much are the fees going to be and what is/are the risk(s) involved?

  2. Alex Christianson says:

    Do I have enough money stored in an emergency fund in case if something unexpected comes up so I don’t cut myself short by taking from my long term investments? Should I pay down my debt first before investing? Am I okay with the market risk, what is my risk tolerance? How liquid will the money be, will I be able to take without fees? What are the costs of the investment? etc..

  3. Mike Finley says:

    Both of you answered correctly, but Alex went further with his questions and that is important when dealing with something as important as investing YOUR money for YOUR future. Let’s recap.

    Before investing your money, ask yourself: Would I be better off paying down debt? (I would pay down debt first if I had debt with interest rates of 6% or higher.)

    Before investing, do you have ample savings to deal with any emergency (at least 3 months of monthly living expenses is recommended, you do not want to pull money out of the stock market because of some emergency).

    Before investing, do you understand what you are investing in? (don’t invest because others tell you to do it, do it because you understand it and know that it is the right option for you).

    Before investing, do you have to lock the money up and pay a penalty to pull it out or simply have a hard time selling it quickly? (this makes your investment less liquid, which you should probably avoid if possible, this would include annuities, cash value life insurance, private REITS and equity, timeshares, and hard real estate)

    Finally, before investing, what will it cost you? (This is easy, invest in no-load index funds. This will eliminate commissions and keep your yearly costs incredibly low. Go to to learn more. Also, go to the investing tab on this website to further your education. Knowledge followed by ACTION will set your FREE!!!!!

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