I bet that isn’t a question you have ever asked yourself. And yet it is one of the most important questions you will ever need to answer.
We sometimes hear stories of people who have lost thousands of dollars in a bad investment. The blame is always squarely put on the person or company who offered the investment in the first place. Sometimes this is well warranted, but on other occasions you feel the people who invested the money didn’t do their due diligence in checking out the fine print and the pros and cons first.
This might sound harsh, but you can probably guess the answer to the question I posed in the title. The only person you should completely trust is YOU. Even then, you should only trust your judgment when you have done your research and you have the knowledge to back that judgment up. Without the knowledge you will be guessing whether you have picked the right investment opportunity or not, and guesswork is never a good thing to rely on.
We always have a range of different investment options to choose from. We can opt for a simple savings account or we can go for something more advanced. These include stocks, shares and various other investments that are intended more for the long term than for short term savings.
Often people invest in these types of funds through a managed scheme rather than trying to go their own way. This is usually down to a lack of knowledge of what to do with their money. It’s akin to saying you’re not sure which stocks to buy so you’d be better off giving your money to someone else and letting them manage it for you instead. Let them choose the stocks and shares and you can go from there.
While there are funds out there that aim to make life easier for you like this, they should not be viewed as a hands-off way to invest your cash. You should always look at where your money is going. Sure, they provide plenty of small print but that’s because there is a lot of important information for you to know. Don’t be tempted to skip right over the top of it and invest your money anyway. There could be something in that small print that would change your mind about the fund in the first place.
You may not think you have enough knowledge to help you work out the best investments for your needs. But you can always pick up that knowledge. It might take a little time and effort but you’ll be educating yourself so you know exactly what you need to do to make the most of your money. Without that knowledge you really are resorting to trusting the opinions of those who will invest it for you. This could be completely different to what you might think, and they may not have the same goals in mind as you do.
Makes you think, doesn’t it?