When I started in the investment business in 1983, there were a handful of mutual fund companies you could deposit money with and that was the extent of your choices. Today, there are open-end funds, closed-end funds, exchange traded funds, plus any number of stocks and bonds to choose from. Where does an investor go? Here are a few tips to follow:
First you need to know your time horizon for how long funds can stay invested, then when will you have to convert invested funds to income. Along with your time horizon, knowing your risk tolerance is very important. To that end, we have an extensive risk questionnaire that all of our clients complete.
Make sure you are diversified. This is a statement that I have repeated numerous times over the years. Having a variety of funds, i.e., different companies such as large cap vs. small, or growth vs. value, as well as foreign and domestic, will provide a measure of protection during volatile times.
Do your homework when hiring a professional to help you. As CFP professionals ®, we have ongoing, extensive continuing education as well as a high fiduciary standard to uphold. Ask questions about fees as well as other types of services that will be provided to you.
Investing is a big deal – this is not gambling. We are here to help you throughout your investing life.

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