The investment options out there are plentiful and complex.
From stocks to bonds to annuities, there are no shortage of investment strategies suitable for the many interested investors out there looking to make money, save money, and diversify their portfolios.
But how do you know which one is right for you?
In this blog, we’ll lay out some simple tips for choosing an investment strategy, taking into account what stage in life you are currently in, your current financial situation, and other factors that can help you achieve your financial goals.
Peace of mind and financial security is the end goal for every investor, so it’s important to note the risks and rewards associated with each investment type.
At Tactical Wealth, our strategic Fixed Income Fund may be right for you if you’re a risk-averse investor with no need for immediate liquidity. If you want a stable, reliable source of income that pays monthly at a rate that will never fluctuate, then give us a call.
If you’re still new to this whole investing thing, don’t worry. Here are some general rules and guidelines you can use to help assess the many investment options and choose the one that suits your needs.
Assess Your Goals
How risky of an investment do you want to make, exactly?
The general rule of thumb has always been something like this: The younger you are, the more risks you are allowed to take.
However, you need to be sure you can really afford to risk your money. It’s your future, after all.
Consider how much you are going to be investing each month, year, and so forth, and for how long you want your investment to last. If you’re planning for retirement, great! The younger you get started, the better off you will be.
If you’re saving for the short term, you will certainly want to avoid things like bonds, CDs, and even some annuities. However, if you want a short term, high return investment, something like the two year option with the Fixed Income Fund might be able to help.
If you want a long-term investment that will yield steady results, then fixed annuities, bonds, and the Fixed Income Fund would be a sound way to go.
Learn more about the Fixed Income Fund here.
Remember To Diversify
A diversified investment portfolio helps to protect you against loss and other risks, so be sure to spread your available resources no matter what strategy or strategies you choose. This can mean allocating some funds in stocks and others in an annuity, or even using the Fixed Income Fund which will diversify its investments by different property types to limit risk and maintain your steady returns. The choice is yours. Just remember, diversifying your portfolio is a critical step so as not to lose all your eggs in the same basket, so to speak.
Watch Out For Fees
Remember, with most investments you will be invoking the assistance of a broker or financial advisor. This can be helpful when it comes to choosing a strategy and actually following through with sound investments, but it can also be painful on the wallet.
That’s because those brokers require payment. This is their job, after all, and the commissions you pay them upon making your investment can sometimes be astronomical and unwieldy. High broker fees, investor fees, and annual management fees can drastically cut down on your returns and make it difficult to justify the investment in the first place.
Be sure you keep an eye on the terms and conditions, as well as understand what fees you will be responsible for upfront. Luckily, with the Fixed Income Fund, you’ll never have to worry about that type of thing. Because we strategically target holdings with a higher value than what we pay out to our investors, our investment carries no investor fees, no management fees, and no transaction fees. That way, you are ensuring that you get the high return investment you seek.
Beware The Market
Many investments are tied directly to the health of the stock market. Financial crisis notwithstanding, this is generally an okay thing, but it still carries with it a lot of risk.
While the stock markets fluctuate, so too do the various interest rates associated with things like variable annuities, bonds, and more.
When choosing an investment you should always opt for at least one vehicle that provides the safety and security of a fixed rate, so as not to expose yourself to the risks of a fluctuating market. However, while fixed annuities offer this type of security, they are still tied to the interest rate at which you make your initial purchase. In many cases, this isn’t always the best option, and while low risk it can also lead to low rewards.
Understand that the Fixed Income Fund has your safety and money in mind, which is why it targets property holdings in traditionally stable markets with advantageous foreclosure laws, while also benefiting from an established contingency reserve to protect against loss or non-performing loans.
Use Your IRA
In some cases, you may already have a large sum of money saved up.
Whether it’s a work-issued 401K account, or a traditional or Roth IRA that you set up on your own volition, having savings set aside can be a huge asset when it comes not only to retirement, but to investment. For example, perhaps you are nearing retirement and want to start seeing a return on the money you have saved up but can’t withdraw it just yet. Or, perhaps you’re already retired and simply want to compound your wealth and add to your collection of savings.
Well, finding the right high return investment that will allow you to invest your 401K or IRA can be a huge asset if either of those applies to you.
With the Fixed Income Fund, you can use the funds allotted in your retirement account to make a principal investment, and then begin receiving the reliable, consistent income generated from our Fixed Income Fund.
That’s a sound investment strategy if you’re looking for a greater return on your retirement savings without encountering financial risks at this stage in life.
Don’t Mortgage Your Future
We already discussed how you should first assess your financial goals, and plan for a high return investment that fits your needs in life right now. It should also be noted that you shouldn’t invest just for the sake of investing. There are always risks when it comes to investing in securities like stocks, bonds, mutual funds, and more. The last thing you want to do is jump into a complicated investment that you don’t understand, with a broker who isn’t interested in explaining the terms to you.
Hopefully, some of these tips have helped clear some things up so that you can make a decision that will aid, not hurt, your future. Whether you’re in the early stages of retirement planning, looking to amass some extra savings for the purchase of a new home, or you’re already retired and are looking for additional revenue sources, you should only choose an investment that you understand and can handle.
If you’re ready to learn more about the Fixed Income Fund and the stable, consistent income it can provide, then contact Tactical Wealth today. We’re here to help you navigate through the murky investment waters with a simplified, strategic product with the experience you can count on.