What’s the best money investment? The answer depends on YOU!

Blog Investing Photo

I remember setting up my first money investment…a 457K retirement plan on my job. I was shown a full portfolio of investment funds that I absolutely did not understand. I was then asked to pick the one that I thought was best.

As I knew nothing of investing, I simply told the advisor to pick one that would grow steadily that I didn’t have to look at. The advisor obliged me by putting my money in the “stable” fund that was growing at a staggering 2% return. Since I didn’t know how to count my money, I was satisfied with the return and I went on with my life knowing that my financial future was secure.

It wasn’t until many years later after becoming educated in money investing that I discovered the true implications of my decision. Did you know that monies invested at 2% interest double every 36 years? That means that if you invested $1 dollar into an account today, in 36 years you would only have $2 dollars in that account?

This explains how I invested in my retirement account for years and had very little money to show for it.

Also, do you think there was a problem with turning my investment choice over to a financial adviser that possibly had a bias in favor of his own commission?

Even further, I knew nothing of the companies the fund invested in, the fees paid to invest in the fund, nor did I know who managed or directed the fund. I was completely clueless about the retirement choice I had made.

Unfortunately, in the world of investments my story is all too typical. This is the one area that we are in the biggest hurry to enter, with the least amount of knowledge, and an extreme level of over confidence. This tragic combination leads to a shortfall in retirement funds, and exposure to con artists as we try to make up our losses.

In plain English all of this means we can’t stop working. We adopted the phrases, “working just to have something to do” and “retirement career” to explain our inability to stop working.

Regardless of the title, it means our money investment strategy fell short of meeting our goals.

So how do we put an end to this vicious cycle? The only way is to develop a healthy education when it comes to our investments.

Before investing you should know:

  • The benefits and shortcomings of your investment choices
  • The mindset and motivations of the financial advisor
  • The language and strategies of the con and scam artist
  • The investment arenas and how they “really” work

Fortunately, you are at the educational starting point of these and many other areas of money investment. As you continue through the site I trust that you will find the information both enjoyable and enlightening.

For further discussion on using your money to create Wealth, please read this blog post

To facilitate your learning I’ll update this blog for you on a regular basis.

Enjoy yourself as you continue your journey of Business and Money!




Leave a Reply

Your email address will not be published. Required fields are marked *