Ideas on how to become rich - Financial Management - what the rich do in a down market, last part

SALLY KLAUS AND HER FINANCE IDEAS:

FINANCIAL MANAGEMENT: WHAT THE RICH DO IN A DOWN MARKET
Last part

Welcome back, dear reader. This is the last part of Sally Klaus' invaluable contribution to my finance, investment and money site. She writes about: "Financial management - what the rich do in a down market". The last article follows:


Take the road less travelled

Your dreams are worth major efforts and you do have a choice: you can go to the financial market without any idea of what investment can and cannot do for you, buy on whim and cobble together an investment portfolio that has no purpose, except vaguely to make money; or you can decide what you want specifically, and learn enough to know what is available on the market, and thereby make calculated decisions and take the correct risks.

There is a lot of finance and investment information out there but do take in the right investment information that will enable you to make good decisions and take the right choices – do be selective and use financial information wisely. Be an informed investor!

Remember to ask the following questions:

Who are you?
Determine your investment profile. What kind of risks can you bear?
How old are you?
How secure do you feel about your ongoing streams of income?
How many years more before your retirement?
What is your life expectancy after retirement?
What is your source of investment capital?
What are primary investment objectives?
When do you expect to need money? Do you need the money now, or later?
Are you aware of the potential risks and benefits of your investment portfolio?
What is your tax status?
What changes to your lifestyle do you have to make?
What is your current net worth?
What steps are you taking to protect your financial assets, your income earning assets, and earning potential?

What works for you: Determining your investment outlook/selection

How does your desired return compare to your risk profile?
Do you prefer growth or dividend income oriented investments?
Do you understand financial risks and rewards?
Is it easy to buy and sell your investment assets?
What are your choices for buying this particular asset?
What are your costs and fees associated with buying and selling this asset?

All the best, and I hope that you have learnt and benefited immensely from all the information and advice in this investment and financial series. Thank you for reading!

End of the last part of this “financial ideas” series
Special thanks to Sally Klaus for her contributions on financial management, which were particularly interesting and memorable for the extensive use of metaphors. I am thankful because I have many economics research papers and she has saved me time and effort to write, and furthermore her financial advice contributions have been very useful and illuminating. A summary of financial advice and more comments follow in the next post. Thank you for reading and cheers.

Ideas on how to become rich