How to protect your Investments

Wednesday, August 1, 2012

How to protect your Investments

Investments come in a wide variety of forms, and you can have a discussion with a certified financial planner about which one is best for you. However, after you have made investments, how can you make sure that they are safe? Investments generally involve risks, but you can use some tactics to make them less risky.

Do Your Research

Before you invest funds, you need to do your research. When going into the stock market, look at the portfolios of stocks to assess how they have done in the past. Let's say that a stock has an iffy history. You may certainly want to avoid it if patterns indicate that it will remain that way. Make sure that the source into which you're putting money has a good reputation. As the old saying goes, the best safety measures are preventative ones. Financial investments are certainly no exception to this rule.

Monitor Your Accounts

One of the best ways to stay on top of your accounts is to keep a close eye on them. If you check every day or every other day, there should not be any surprises. If you have a stock that suddenly starts to drop, you can decide what to do without it, before it decreases even further. If you have money in the bank, frequently check your accounts to make sure that no one has hacked in or stolen money from your account.

Tangible Items

You might decide to make investments by starting a collection of valuable items. If you have pets or children at home, put these items in a case above their reach so that they are not destroyed. A glass case-perhaps one that is attached to a china cabinet-would be most appropriate to keep them clean and safe. Some items will require extra cleaning from time to time. Remember, once an item becomes dirty, broken or otherwise tainted, it is no longer considered mint. Mint items are generally worth a lot more than are items in other conditions, so keep those collectibles in tip-top shape.

For the Future

You can certainly think of retirement plans, 401Ks and the like, as investments for the future. When you're no longer in the work force, there will be money waiting to help you out. These investments are relatively low in risk as they generally are not going anywhere. However, you should be cautious about withdrawing money from one of them before you retire. Doing so might cause high interest rates when you're paying it back. Additionally, you may look back and regret spending that money one day. To truly protect retirement funds, make only purchases that can be afforded in cash, and if that is not possible, use retirement funds only in the event of an emergency.

While money is certainly not the most important part of life, it is necessary if you want to have food, clothing and shelter over your head. 

About the Author:

Christof Dane writes about small business investing strategies and employment background searches.

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