| How safe is your retirement money? Do you | | | | investment strategy -- which is designed to help |
| have faith that it will grow -- and do so safely | | | | preserve and grow money safely. |
| enough and quickly enough to help you enjoy | | | | 3. If you have a 401(k), an IRA, or a similar |
| your retirement? Take this quiz and find out if | | | | retirement plan, chances are good that the |
| you are using the retirement investment | | | | answer to this question is yes. Unfortunately, |
| strategies that will make that happen: | | | | that's not in your best interest. Did you know that |
| 1. Do you believe you can time the market by | | | | most mutual funds perform less well than even |
| following your gut feelings? | | | | their benchmark index funds? And if this weren't |
| 2. Have you lost a lot of money during the last | | | | bad enough, mutual funds also come with hefty |
| two years? | | | | fees to pay for the fund managers, advertising, |
| 3. Do you have all or most of your money in | | | | and more. What's the alternative? There are |
| mutual funds? | | | | several, but the easiest and least complicated |
| 4. Do you get your investment advice from your | | | | would be to buy shares of index funds. They're |
| insurance salesman or your friends? | | | | bound to perform better and come with reduced |
| 5. If you do have an investment advisor, does he | | | | costs. |
| or she get paid through commissions? | | | | 4. Just like you want a medical specialist if you |
| Here are the answers: | | | | have a serious medical problem, you also should |
| 1. Making investment decisions based on your gut | | | | talk to someone who specializes in investing if you |
| feelings has gotten a lot of people into big trouble. | | | | want investment advice. Your friend may have |
| Instead of buying low and selling high, which would | | | | had a winning stock at some point, but chances |
| result in profits, your emotions are bound to guide | | | | are good that he or she doesn't know too much |
| you in the opposite direction. What works much | | | | about the reasons why this stock did so well, and |
| better is to develop sound retirement investment | | | | would be unable to replicate that performance |
| strategies and create a plan with the help of an | | | | with other investment vehicles. If you want |
| experienced fee only financial advisor -- and then | | | | expert advice, it's always best to talk with an |
| sticking with that plan, unless your advisor | | | | expert. |
| suggests other actions. | | | | 5. This is a key question. If your investment |
| 2. Chances are your answer to this question is | | | | advisor is paid in commissions for their advice, |
| yes. Most investors have lost huge amounts of | | | | they're not working for you. Be sure to ask any |
| money during the last two years. How can you | | | | prospective advisors how they get paid, and look |
| prevent that from happening again? By going with | | | | for fee only advisors. That way, you know that |
| safer investment strategies. Talk with your | | | | their fiduciary responsibility lies with you. |
| investment advisor about the absolute return | | | | |