Investing Money: Advice Tailored To You

Don P.

Investing and money advice comes from many sources and in many forms. Mostly generic, the advice may make claims of future riches or profits from different types of investment programs and schemes. The advice provided in some sources may not take into account your specific financial needs, investment goals and objectives. Good investment and money advice should be custom tailored specifically for you.

Sources of Information

Using periodicals such as the business section of a local newspaper or the Wall Street Journal can provide some good general investment and money advice and ideals for you to explore. They are reliable and credible and give a balance and well research source of information for you to consider. When reading this material you should look to how it fits your situation and what further steps you should take to tailor an investment strategy from the advice.

Financial Advisor
A financial advisor or other investment professional is trained and licensed or certified to provide you with advice and information. These individuals are in the business of helping individuals chart a financial course that takes into account lifestyle preferences, goals, objectives and risk tolerances. A good financial professional takes the time to ask questions, listen, gather data and analyze your situation before giving you advice.

Steps to Tailoring Advice
The process of tailoring money and investing advice involves several steps. The first step in the process is gathering data regarding your assets, liabilities, investment goals and attitude toward risk. This information gathering process can involve a formal survey or be captured on a legal pad. You can download financial planning templates online or simply sit down and capture this information in a spreadsheet. Working with an investment planner helps you remove some of the bias you may have about your own financial situation and place a fresh set of eyes on your plan.

Investment Goals and Objectives
The planner will also ask questions regarding your goals and objectives as part of their process to determine the best advice for you. Your financial goals may include such things as buying a home, investing in a new business or retiring comfortable. Each of these stated goals can be explored further to determine when you would like to accomplish them and what steps you have taken to meet the goal.

Your investment objectives are focused on concerns or fears that you may have in reaching your financial goals. These can include wanting to preserve your principal investment while growing your assets. It includes taking a high level of investment risk in order to achieve higher returns. Your objectives can contradict themselves, which is why it is important to rely on the talents of a qualified outsider.

Risk Tolerance
Your risk tolerance has to be considered because many investors do not understand or appreciate the nature of risk and how it affects your money. Determining your risk tolerance helps you place your goals and objectives in the proper context and make decisions about your plan that are specific to you.

Relying on generic advice that you read about online or in a newspaper may give you general ideals to work with. Use these sources as a stepping stone to tailoring advice to meet your specific financial needs.

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