In order to build long-term wealth, all people will ultimately need to invest their money. While this can seem like a daunting or intimidating task, there are several tips that can be followed to ensure that you earn a good return on investment and keep your money safe. The five tips are provided by Brad Reifler, the CEO of Forefront Capital, a company that works with individuals to invest their money for long-term growth. Historically, Reifler focused on providing investment advice to high net-worth investors, but he has recently began to focus more on helping less wealthy people meet their investment goals.
The first tip is to be careful of how you invest in the stock market. Many people who invest in the market will not carefully consider where they invest their money. Many people who invest do not spend the time thinking about all of the expenses associated with investing, which can include account maintenance fees, brokerage fees, mutual fund fees, and advisory fees. Prior to making any investment, be sure that you fully understand all of the costs associated with it.
Another tip to follow is to be concerned about the safety of your investments. Prior to making any deposit with an advisor or brokerage firm, be sure that they are reputable and properly audited. It would also be wise to diversify your investments into several different funds and brokerage accounts.
The third tip Brad has also given on Twitter, is to never put all of your money into the stock market. Since the market is prone to wild swings, it would be wise to keep a good amount of your money in cash and fixed income securities. This will ensure that you do not lose too much of your nest egg if the market declines considerably.
You should also develop a relationship with your financial advisor. That’s part of the driving force of Forefront Capital under Brad Reifler. In order to properly manage your money, the manager will need to have a better understanding of your personal situation. The only way for this to happen is to develop a relationship with the money manager and discuss your finances with them on a regular basis.
The fifth tip is to understand and recognize why you are investing to begin with. This can include investing to build a retirement account, save for college, or simply to earn another income stream. Having a clear objective will help you to make better investment choices and stay the course during periods of volatility in the stock market. Find Brad Reifler’s entire history on About.me.