March 30, 2014 Admin | March 30, 2014 What questions must be answered prior to allocating your money toward different securities like stocks and bonds?
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A good question to ask yourself is if you will need this money any time soon or if you can let it sit there and grow, if you think you will need the money soon then you may want to look at a different option, such as a short term bond fund, a second major question is what your can hand in term of risk to see your money go up and down, this question will help you get an allocation that is right for you. A third question to ask yourself is if you are putting your money in the right institution, does this place have the lowest fees and the best accounts to put the money in, normally the answer to that once is always Vanguard. A final thing to ask yourself is if you actually know what you are doing or just think this sounds right, make sure you know everything you can before investing so you dont get burned in a band account or a scam account.
You covered the issue quite well, Garrett. Let’s review.
Ask yourself, what are my goals with this money? When will I need it? How much can I handle in paper losses before I freak out and sell? Where can I grow my money at the cheapest cost? What is my tax situation and how can I reduce taxes on my investments?
These are all important questions that should be answered BEFORE investing your money. Take control, it’s YOUR money and YOUR life. YOU are the answer!