With all the news and information we receive daily, we can feel overwhelmed. In recent times both the local and international financial markets have been flooded with news which can influence our current investment decision-making or make us question the investments we currently have. Being able to filter through the information available to us to make informed decisions is paramount to achieving your financial goals.
We must first realize that not all information we receive is factual, and that not all sources of information are credible. We often look to friends, family, newspapers, magazines, and the internet for information to guide our investment decisions. These can be great sources of information when an investor needs to make a decision about a new investment or when analyzing their current investments. However, determining the credibility of these sources can be difficult. To determine the credibility of the source, look for information coming from experts in the field of finance who will provide the most up to date information that will help you to make the best decisions. The experts will have a proven track record of providing factual and unbiased information that is timely and relevant. The timeliness of the information is of utmost importance to ensure that the information is being used at the most suitable time to maximize the return on your investments and minimize any potential losses. A licensed financial advisor is one such credible source. They will be able to provide the most recent and relevant information pertaining to the investment options available to you. They will also help you to compare options to determine which one(s) align with your financial goals.
Once you have determined the credibility of your sources, it is important for you to have a good understanding of the investments before making a final decision. Don’t simply invest based on the advice of someone else. Understanding the investments available to you allows you to determine which ones align with your goals and with your risk appetite. Financial goals and risk appetite are unique to each of us and the only way to determine that an investment is in total alignment is to have full understanding. Ask as many questions and do as much reading as is necessary to become comfortable with an investment before making the decision. Your financial advisor is there to guide you and provide all that is necessary to allow you to make the most informed decision. Remember the final decision is yours to make.
In summary, having relevant and timely information will help you to make the best investment decisions to achieve your financial goals. Seek information from credible sources and try to have a full understanding of the investment. Monitor your investments on an ongoing basis with your investment advisor. This will ensure that any new information which can affect your investment is known by you and will allow you to make any necessary adjustments to your investment portfolio.
Dwayne Neil, MBA, is the AVP, Personal Financial Planning at Sterling Asset Management. Sterling provides financial advice and instruments in U.S. dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm Feedback: if you wish to have Sterling address your investment questions in upcoming articles, e-mail us at email@example.com.