You made it! Everyone reading this has either filed their taxes or filed for an extension. Right? If you’re a PFG client, the answer is: Yes. If you have not, stop reading now and go get it done. For all of you that have, we’ve got an older – but always relevant – Report for you:
Summary: The above article should take you about 7 minutes to read; however, once you’re done, spend an additional 7 minutes and read it again. The advice could save you hundreds of thousands of dollars and countless days, weeks, years of your life.
Conclusion: The answer to your question, “Should I invest in (fill in the blank) …,” is: NO! Do not invest in your cousin’s boyfriend’s hot tip. Do not invest in some revolutionary iPhone App. Do not invest in a non-productive speculative asset (I’m looking at you crypto). Do not invest in standalone real estate. (Yes, we said it. Practice building excluded. The article will explain).
Instead come up with an investment philosophy and set of principles that will guide your decisions, and then stay the course:
- Is the investment a productive public company that is innovating and creating new goods & services for a profit?
- Has the investment been time-tested with academic research?
- Is it highly diversified?
- Are there safeguards in place? (i.e., who is holding the investment, are there audited financial statements)
- Will this investment require more time & effort on my part as a side job?
If, after all of this, you still want to make that special investment; we’d suggest using only as much money as you’d be willing to lose betting on “Red” or “Black.”
“The most important quality for an investor is temperament, not intellect”