Find out how long the fund manager has been in business. Is he able to furnish references? What credentials does the advisor possess? Check out the type of counsel you’re dealing with. Is it a big or little office? Will several employees work for you, or will you only deal with one person?
Do it yourself or not?
Wrong judgments regarding sophisticated financial items like investments, mortgages, and life insurance can cost you a lot of money. Do you have a basic understanding of these complex financial products? Then it’s a good idea to get advice from a financial counselor.
Furthermore, financial product suppliers have a responsibility of care. They are not authorized to sell you a sophisticated product that does not suit you under the Financial Supervision Act.
If you want to buy a product like this without guidance, the vendor will put you through a knowledge test. With this, he determines whether you have sufficient knowledge to plan.
Choosing the type of advisor
Banks and insurers are primarily providers. They supply financial products. They can also act as advisers or mediators if you inquire about their possibilities. Do you do business with them? Then you must show the costs of the product and the advice separately. Usually, employees of a provider only advise on products from that provider.
Decide on the horizon and psycho type
Point of no apparent importance. And the significance here is oh so fabulous. It would seem, what is there? After all, no one has a goal to invest at a loss, regardless of the horizon. So it is, but the misunderstanding of one’s horizon leads some people to losses.
For example, a person wants to invest in stocks but expects a positive return in a month. And, without waiting, he sells at a loss, gets disappointed, and forgets about the stock market, like a bad dream.
Expand your horizons and knowledge about the world
I’m not talking about economic or financial models (I have never used them in practice), but more superficial things. Well, for example, my favorite story with Intel. You use a computer with an Intel processor and know it’s good company.
Develop critical and systemic thinking and the skill of working with information
Critical thinking is the ability to question any incoming information. It is also an understanding that any information not confirmed by facts is just shaking the air. It is the ability to verify data in original or reliable sources or with one’s hand. This skill helps to get closer to the truth in case of conflicting information. This filter allows you to separate valuable information from background noise and fakes.
Have confidence in what you buy and think about the future
I see here an iron principle for any investor: there is no certainty in choosing a business and no peace in case of a drawdown. I’m not talking about speculators and traders who earn according to entirely different rules. What will serve as your source of confidence is up to you. My source in the statement is that business is a system. If I see a stable and promising strategy, I will buy it. The system can be expressed in historically effective results (Facebook), a systematic approach to doing business (Danaher), and competitive advantages (ISRG).
Calculate the yield in dollars
Calculating the yield is necessary for whatever your denomination is. Your yield could be more or less than the dollar, depending on the denomination.
Do not think that there is a secret
What a sin to conceal, I once thought. There seemed to be a person, course, or book that would teach me how to invest. Someone is looking for the secret of how to love, get a good job, or not get sick. All of us are united by the search for the magic button “happiness” (“loot” in the case of investments).
I don’t even know if I should add something here. Probably easier to tell a personal story. I started learning about investing at the end of 2017, after the liquidation of the business. I was attracted by the opportunity to diversify investments qualitatively.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.