Broad, broad subject. Prompted by a wide ranging discussion with a 65 year old friend who successfully handled the last market downturn.
Not a questionnaire, a poll, a test, or even needing a response. Simply an iteration of some of the points I see here on ER, and food for thought.
Individual Broker or Investment Management Company? Yourself?
But that's just the beginning. With your entire financial future at stake, it's almost impossible not to be influenced by other factors, other people, other "philosophies", other experts... and history, world events, media news and opinions... personal confidence, personal finances and not the least, peace of mind.
If you were to explain to friend who does not actively "invest", how you decide to handle your own finances, what would you say? What should he/she look for when investing for the future, assuming they are in a situation similar to yours.
A short list of considerations:
If entrusting someone to invest for you, (person or company) is it based on current performance, recent performance, or long term (years) performance.
History? As in long term market performance, but also for riding trends and successes. What about charting? Do you follow this, or is it more of an afterthought... a validation of someone's predictions?
Buy on recent performance, recent news, expected performance "edge", or more on proven results. Do company "books"... (registry and statutory ledgers) enter the decision, or is this taken for granted when using an advisor.
Balanced investing? High Risk? Conservative? Ultra conservative? Cash?
Does this change with the market?
Leverage? This could take many forms... would, will, should this be an option? ... and if so, how? Leverage being the use of monies that could be used in other means... ie; Cash reserve, early withdrawals, mortgages or loans.
Macro/micro view? Does the market rest on real value or relative value? Other US stock values? International markets, and value relative to global
economies? All of these of course, but how big a factor?
How important is the action of the FED? How "safe" is the FDIC safety net?
Share the name of a trusted financial Guru?
Maybe just as important as any of the above... Avoid the hype of individual commentators on the media, or on financial websites?
Assuming a correction... hold and ride it down? Out at DJ 15K? 13K?
10K... And theoretically out at what point and back in at what point? Alternatives... Bonds? Cash? Gold? And then... short term? long term?
You can surely add many more considerations and "ifs"... If the market bounces back 500 points on Monday, today's thinking will go away, at least for the moment, but the longer term considerations will still be there. Loss is always balanced by opportunity... somewhere. Hearing about this would be especially interesting.
Not a questionnaire, a poll, a test, or even needing a response. Simply an iteration of some of the points I see here on ER, and food for thought.
Individual Broker or Investment Management Company? Yourself?
But that's just the beginning. With your entire financial future at stake, it's almost impossible not to be influenced by other factors, other people, other "philosophies", other experts... and history, world events, media news and opinions... personal confidence, personal finances and not the least, peace of mind.
If you were to explain to friend who does not actively "invest", how you decide to handle your own finances, what would you say? What should he/she look for when investing for the future, assuming they are in a situation similar to yours.
A short list of considerations:
If entrusting someone to invest for you, (person or company) is it based on current performance, recent performance, or long term (years) performance.
History? As in long term market performance, but also for riding trends and successes. What about charting? Do you follow this, or is it more of an afterthought... a validation of someone's predictions?
Buy on recent performance, recent news, expected performance "edge", or more on proven results. Do company "books"... (registry and statutory ledgers) enter the decision, or is this taken for granted when using an advisor.
Balanced investing? High Risk? Conservative? Ultra conservative? Cash?
Does this change with the market?
Leverage? This could take many forms... would, will, should this be an option? ... and if so, how? Leverage being the use of monies that could be used in other means... ie; Cash reserve, early withdrawals, mortgages or loans.
Macro/micro view? Does the market rest on real value or relative value? Other US stock values? International markets, and value relative to global
economies? All of these of course, but how big a factor?
How important is the action of the FED? How "safe" is the FDIC safety net?
Share the name of a trusted financial Guru?
Maybe just as important as any of the above... Avoid the hype of individual commentators on the media, or on financial websites?
Assuming a correction... hold and ride it down? Out at DJ 15K? 13K?
10K... And theoretically out at what point and back in at what point? Alternatives... Bonds? Cash? Gold? And then... short term? long term?
You can surely add many more considerations and "ifs"... If the market bounces back 500 points on Monday, today's thinking will go away, at least for the moment, but the longer term considerations will still be there. Loss is always balanced by opportunity... somewhere. Hearing about this would be especially interesting.