First things First




It seems like whenever I talk to someone for the first time about investing, I get a situational question similar to this, then asking for advice:

"My wife & I have a considerable portfolio.....401k’s...IRA’s....CD’s & probably a bit to much in a bank savings account paying basically nothing. I am almost 62 & retired , and my wife (61.5 years old) is a professor at a community college with good benefits wanting to wait until at least age 65 to retire because of health insurance. I was thinking of trying to put some of that cash to work in a more aggressive fashion.

Would you have any advice for me?"

MY ANSWER IS ALWAYS THE SAME

First things first. 

If you'd like my advice (which I'm always happy to share), I need to know a little about you before we talk about anything else.

For ALL beginning/novices investors you must ask yourself these 3 questions and answer them honestly, otherwise you're setting yourself for eventual doom.

Well, you could get lucky, but after so many years in the investing business, I don't believe in luck when it comes to setting an investor profile.

#1 Ask yourself - what is my primary investment objective? Is it:

Conservative
Moderate
Growth
Aggressive

#2 Ask yourself - what is my risk tolerance? Is it:

Conservative
Moderate
Aggressive
Speculative

#3 Ask yourself-  when do I need this money? Is it:

Months
Years
Decades

So, whether you'd like my advice or not.

If you are even thinking of investing your money, answer these questions first.

Then, base your beginning investment decisions on your answers.


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