Financial Safety Advice

1 – It’s all about investment in planning

The financial advice is a much broader discipline than investments. The person may be very good for putting money, but not quite good at planning. Or vice versa. Carry out an orderly program also requires knowledge of accounting, insurance and taxes. Therefore, it is considered the “art” comprehensive vision of all these aspects so as to maximize results. Find someone who can assist in all aspects.

2 – Hire professional advisers only and credentialed

Avoid amateurs. There certify their professional credentials. In the United States, are more common in Argentina, but they are. The title of CFA or CIIA among others, is a guarantee of professionalism. The country may request that your counselor will show specific investment education he had as courses, studies, etc. Another important factor that has a vast experience in the finance industry.

3 – Compare different alternatives

It is important to take a broad view of the different alternatives. When hiring a financial advisory interview at least three different. In this way, you will learn several different options and may elect the most in convincing and he can deliver the services they need. Many times, not only about hiring a professional, but also to understand and have an affinity with you. Read the rest of this entry →

Invest our savings is a process that involves taking risks. The investor enemies lurk and threaten to destroy our investments if we are not vigilant.

We know that investing in stocks or real estate is a very profitable investment alternative for medium and long term. As discussed in previous notes, on average you can expect an annual return of 11% average if I invest in a basket of the largest stocks in the United States. And the real estate returns are very close to this level.

But as we know, these returns are not a straight line, stable and calm, are very variable.The volatility of the markets, which currently is very high, causes the returns are variable from year to year. Some positive and some negative years, giving the average mentioned, but with many variations.

Why is this?
The answer is implicit in the logic of capitalism. Two events that exist in capitalist economies get a little complicated the picture:

* Business cycles
*The Process of Creative Destruction

Understand how these two phenomena will give me peace of mind knowing the context in which we operate. And I will make investment decisions more effective.

Type of investor: This advice is important for active investors and long-term investing in stocks and real estate

Risks: It is very difficult to predict the movements of the cycles and anticipate the winners of the process of creative destruction

Potentiality: I am a general framework that explains many movements, therefore, prevents me from making irrational decisions