When you are new to investing and the world of wealth management, investment advice seems to come from everywhere. While a knowledgeable friend may point you in the right direction, it is best to get investment advice from people who work directly in the industry. Here are some pieces of investment advice from the pros – learned from years of experience.
Warren Buffet is largely considered one of the greatest investors of our era. He is equally well-known for his nuggets of shared wisdom that have helped many fledgling investors find the right state of mind to succeed.
Buffet’s history speaks for itself, and this piece of advice speaks volumes about how he got where he is today. By delaying the gratification felt from making a quick deal, you can plan for a better future. For instance, rather than buying a bigger house now, someone may buy a modest house and invest the extra money. In 30 years this may generate enough of a return to comfortably retire in a huge house in the Bahamas. If that is what you want, of course.
Fight the urge to think only of the immediate returns and focus on creating the best future possible. It will pay off.
Investment icon Peter Lynch is responsible for this snippet of investment advice, and it rings true for 40 year veterans and first time investors alike. Investments should be simple. Getting in over your head can quickly spell disaster. If an idea or strategy is too complex to be easily understood, chances are it is not the investment for you.
It can be seen as the financial equivalent of “learn the ropes”. This is not to say your knowledge will not expand, because it will. And as it does, complex ideas will become simpler and thus be more attainable. But when starting out, complex strategies and ideas should not be the first thing you look towards.
The financial world is complex, and it is easy to get lost in chasing the next big investment. The payoff from a high risk investment can be huge, which can lead some people to bite off a bit more than they can chew on the next one. In these cases it is important to remember why you are investing.
Is it simply to retire comfortably? Do you want to leave a better legacy for your family? Are there kids or future grandkids you would like to send to university? Causes you believe in that you would like to donate to?
It is not money that is at stake when you start making too many high risk investments. You gamble with the very reasons why you started investing.
Investments are just a means to what is truly important in life.
Wealth management is a multi-layered puzzle, requiring a combination of time and knowledge to run smoothly. The biggest piece of investment advice we give our clients is to not go it alone. From successful first time investors to giants like Buffet and Lynch, every investor has a team dedicated to their success.
It is important that your team has put time into the industry. It is equally important to feel that they care about your needs. Understanding that you have a team working hard to see you succeed is quite empowering. We think everyone should know how that feels. Contact Generations Wealth Planning today to start the conversation about your next investment. Don’t go it alone. In life, as in investment, the best things happen together.