When I was an investment adviser I used to find it shocking where some of my clients would find their investment advice. I still find it almost comical where many of my friends and family members go when they are looking to invest some off their money. While investing is an important part of working towards retirement, it should still be approached in a way that makes sense.
1.) The Water Cooler
One of the most dangerous places to seek investment advice is from your friends, family and co-workers. There was a time when you could almost throw a dart at a list of stocks and the one you picked would fly up, but those times are long gone. Hot tips just don't pan out these days. So, seeking your investment advice from other amateurs can prove to be costly mistake.
2.) Free Email Alerts
Advertisements for stock and other investment picks that go up 100% of more are ramped these days, especially with the internet in full force. These businesses offer free picks via email and tell you how they will make you rich.
However, what most of these email based services want to provide you with is a pick that they have a vested interest in. Either they will be paid to push the stock or they will have a bunch of the stock that they want to dump and can do so by painting a pretty picture to trusting souls online. Think about it; if they were really making such huge returns, why would they share the information with others free of charge? These types of businesses almost always have a hidden agenda.
3.) Non-Independent Investment Advisers
When I broke into the investment business I wanted to work for a firm that was independent. The reason was simple; I wanted to be able to recommend what I wanted. If you are taking your cues from an investment adviser who is not with an independent firm then many or all of the recommendations they are making for you are going to be based more on what is good for the firm and not necessarily what is good for you.
Larger firms will have certain stocks, mutual funds and other investment instruments that they will instruct their advisers to push. While not all of the investments will be good or bad, the point is you will not be presented with all your true options.
4.) Get Back to the Basics
If you are seeking investment advice, start with doing your own homework. With all the free resources available online, you can learn a lot about what you might want to invest in. If you still need help, seek out a professional who has no vested interest other than yours. Flat out ask if they can recommend whatever they want or if they have to stick to what the firm tells them.
Remember, investing is always risky at some level. So, you have to be sure your risk tolerance is being met in the proper way and being considered by those who you take your investment advice from.
1.) The Water Cooler
One of the most dangerous places to seek investment advice is from your friends, family and co-workers. There was a time when you could almost throw a dart at a list of stocks and the one you picked would fly up, but those times are long gone. Hot tips just don't pan out these days. So, seeking your investment advice from other amateurs can prove to be costly mistake.
2.) Free Email Alerts
Advertisements for stock and other investment picks that go up 100% of more are ramped these days, especially with the internet in full force. These businesses offer free picks via email and tell you how they will make you rich.
However, what most of these email based services want to provide you with is a pick that they have a vested interest in. Either they will be paid to push the stock or they will have a bunch of the stock that they want to dump and can do so by painting a pretty picture to trusting souls online. Think about it; if they were really making such huge returns, why would they share the information with others free of charge? These types of businesses almost always have a hidden agenda.
3.) Non-Independent Investment Advisers
When I broke into the investment business I wanted to work for a firm that was independent. The reason was simple; I wanted to be able to recommend what I wanted. If you are taking your cues from an investment adviser who is not with an independent firm then many or all of the recommendations they are making for you are going to be based more on what is good for the firm and not necessarily what is good for you.
Larger firms will have certain stocks, mutual funds and other investment instruments that they will instruct their advisers to push. While not all of the investments will be good or bad, the point is you will not be presented with all your true options.
4.) Get Back to the Basics
If you are seeking investment advice, start with doing your own homework. With all the free resources available online, you can learn a lot about what you might want to invest in. If you still need help, seek out a professional who has no vested interest other than yours. Flat out ask if they can recommend whatever they want or if they have to stick to what the firm tells them.
Remember, investing is always risky at some level. So, you have to be sure your risk tolerance is being met in the proper way and being considered by those who you take your investment advice from.
