Canadian Personal Finance Blog

Investment Strategy it’s Important

You are asking the wrong guy that question, I am not a financial investment guru, and any money I have made over the years has mostly been by accident, not by some grandiose investment strategy. When I was a younger man, I fooled myself into believing I knew what I was doing, but at the end of it, I didn’t (remember my comments about my tech investments here).

I would say that right now my investment strategy is to use index funds and slow growth bonds mostly, just because I am old enough now that I don’t think I can afford another massive hit like I did in 2000. Should you do this? Have you not been reading, I am saying, GO and find out what YOU should do, I am simply telling you what has worked for me.

Remember a few important points:

• The more the risk, the more the potential gains, but I am here to tell you that RISK sometimes is a bad thing too (remember Slim Pickens riding that h-bomb).
• If you are younger you can afford to take risks, because you have time on your side to recover, if you are older, you shouldn’t be risking money you can’t afford to lose.
• If you use Index Funds and/or Mutual Funds, research them well, and try to buy ones with low management fees, and no entry or exit fees. Don’t buy Mutual Funds solely on the say so of a co-worker or friend, research them, at your library or on line.
• If you are going to buy stocks, be careful, because no matter what stock you buy, you are at Risk. I have shares in Financial Institutions because they are making so darn much money, but if the housing BOOM turns into a BUST, these stocks are going to take a hit.

You have time if you are young, create an investment strategy but don’t fool yourself into procrastinating, remember:

If it weren’t for the last minute, I wouldn’t get anything done. ~Author Unknown

Is not the credo to live by in your financial planning and investing lives. –C8j