Tag Archives: financial advisor

This Little Investor Went to the Market

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There are several things to consider if you are thinking about investing. Where do you go to purchase an investment? What are all the available options? How do you know which is the right one? When is the best time to buy or sell an investment? Whom should you trust to give you advice? Why should you even invest your money at all?

It can be initially difficult to find answers to these questions. After all, you can’t just walk into an investment superstore, browse through the aisles, read the labels on the different products, ask the store attendant some questions, select the right option and pay for it at the checkout counter.

If investing was as easy as shopping, we would probably all be very wealthy!

Continue reading This Little Investor Went to the Market →

Getting Started with Investing

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Whenever I examine the topic of investing, I often receive responses from readers who want to learn more about how they can make their money work for them in some type of investment. It seems that while they have a desire to invest, many persons are unable to proceed because they just don’t know where to start.

When I first learnt about the concept of investing many years ago, I was initially hesitant about putting money into anything that couldn’t guarantee a positive return. While I understood about saving and receiving interest on my money, it seemed like a risky idea to commit my hard-earned funds into an endeavour, hoping that it would generate a profit.

I remember doing a training course that required the students to create a portfolio which included stock investments. At the time, I didn’t know anything about the stock market, and I was annoyed that I was being forced to invest in something that could lose money.

Very reluctantly, I placed 20 per cent of my ‘pretend’ funds on a few stock picks, and prepared for a disastrous result. Continue reading Getting Started with Investing →

How to become a successful investor

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Last week we looked at several investor personalities which Robert Kiyosaki describes in his best-selling investing book, CASHFLOW Quadrant. While examining the attitudes and actions of different types of investors, he explains that most of them will only achieve minimal success because they lack the financial intelligence required to become wealthy.

Kiyosaki outlines three investor types that will become successful with money. The first is the long-term investor that is actively involved in making investment decisions. He explains that these persons invest in their own financial education before they buy an investment, so that they can fully understand how to make appropriate choices with their money.

These investors are financially disciplined; they live within their means and minimise their liabilities. Once they have identified their goals, they find out how much they need to invest to attain their objectives and create realistic action plans. They seek advice from competent financial advisors, are usually conservative, and avoid complex investing options. Continue reading How to become a successful investor →

Your Attitude Determines Your Results

Money & Your Mind, , , ,

“Attitude is a little thing that makes a big difference.” – Winston Churchill

One of the most frequent requests I receive is for assistance in preparing a budget. It seems that there is a universal problem that afflicts young and old, male and female, low-income or high-income alike: “How can I match my income to my expenses?”

If you are struggling with making ends meet, overcome with debt, or just need to save some extra money to achieve your goals faster, the first step to success is always the same – you have to examine your current financial picture to determine where you are now.

The budget is one of the tools to use to see exactly how your earnings are allocated in spending. Very often, the budget reveals the source of the problem and can provide the key to the appropriate solution. Continue reading Your Attitude Determines Your Results →

Mistakes To Avoid When Investing

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“When you make a mistake, don’t look back at it long. Take the reason of the thing into your mind and then look forward. Mistakes are lessons of wisdom. The past cannot be changed. The future is yet in your power.”-Hugh White”

One of the biggest fears that we all face is the fear of making a mistake. This is even more evident in the investing world, where one wrong investment decision can prove costly and wipe out an investor’s hard-earned money.

I have heard many sad stories of investments gone awry – people who went into massive debt because of an ill-conceived business idea; trusted companies that promised high returns and disappeared into thin air; rented real estate that turned into a nightmare due to trouble with tenants.

However, most mistakes that are made in investing are not quite so dramatic. Every day, average investors make very simple errors in judgment that can have a negative effect on their investment plans. Continue reading Mistakes To Avoid When Investing →

Start Saving Now For Your Retirement

Retirement & Estate Planning, , ,

“I’m 24 years old and I just started working with a small company that doesn’t offer a pension plan. I’m a little worried about this, and I want to start saving on my own. How can I go about investing for my retirement?”

Congrats on taking the initiative to start investing on your own for your retirement. Many Jamaicans put off planning for this big lifestyle change until a few years before they’re ready to retire.

At that point, they usually are a little panic-stricken when they realize that their steady income will cease in a few years, and they don’t have any idea how they are going to replace it.

Continue reading Start Saving Now For Your Retirement →

Steps To Achieving Your Money Goals

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“I wrote my usual resolutions at the start of the year to make some improvements to my finances, but already I’ve slipped back into some bad habits like buying unnecessary items at the supermarket. It’s one thing to make the resolutions, but how do you actually carry them out successfully?”

The challenge with resolutions is that they are often in direct opposition to your normal behaviour pattern. To achieve your new goals, you will have to break the old, comfortable habits that have prevented your progress, and create new routines for success.

Many times it is very difficult for people to change their lifestyle, even if they know it’s bad for them. As they say, ‘old habits die hard.’

Continue reading Steps To Achieving Your Money Goals →

How Much Risk Is Right For You?

Investing, Risk Protection, , ,

“After reading your column last week on being less fearful about investing, I think I need to take more risks with my money. Everything I have is in a savings account earning very little interest and I want to try something else that can make more. How do I go about figuring out how much to risk?”

I got many interesting responses to last week’s topic on fear and investing. Some people were willing to jump headfirst into riskier investment options, as they were tired of earning minimal returns. Others were still terrified about the thought of losing money, but readily admitted that they were not satisfied with how their money was growing in basic savings accounts.

Two reasons why people invest their money are to increase the original sum invested, or to create a source of regular income. Risk is simply the chance that the outcome of your investment will be less than expected. This can include losing some, or all of the initial principal, or not getting the return you had hoped for. Continue reading How Much Risk Is Right For You? →

Don’t Let Fear Hold You Back From Investing

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“Some of my friends were talking recently about how they made some good profits in the stock market recently. However, it was my understanding that if you invest in stocks you can lose your money.

“I really have worked hard for my money and I don’t want to get involved in anything where I could lose any of it. I’m wondering if there’s something I’ m missing by being afraid of investing in stocks.”

I can relate very well to your fear of investing in anything that could lose money. Many years ago, when I had just started working in an investment brokerage, I had to do an exercise to invest some money in stocks and money market accounts.

I didn’t know anything about the stock market at the time, and I remember saying to myself “Why would anyone want to put money into an investment that could lose money?“ I reluctantly placed twenty percent of my available funds (the minimum allowed) into the stock market, and prepared for the worst. Continue reading Don’t Let Fear Hold You Back From Investing →