Category: Stock Market

Financial Advisors Predictions for 2017

financial advisors predictionsFinancial advisors have recently begun compiling and publishing their list of top predictions for 2017. If you are a member of this industry, or someone who benefits from receiving and following these financial advisors predictions, you’ll want to pay close attention.

Financial Advisors Predictions for the Year 2017

These are the forecasts for 2017 that much of the industry is prepared to endorse and closely follow. You should be aware of these predictions. You should also be prepared to act on the practical advice that they contain.

It May be Wise to Consider Pausing Your 401(k) Contributions

One of the areas in which a financial advisor may surprise you is when it comes to your latest round of 401(k) contributions. More than a few advisors are recommending that high-income clients, who have already given the maximum amount of contributions, should consider suspending them altogether throughout the first half of 2017.

While unorthodox at first glance, this may well prove to be a wise move. This is due to the expectation of major tax cuts which are thought to be forthcoming. Channeling your 401(k) pretax contributions into a taxable brokerage account or a Roth 401(k) might prove to be the wiser investment strategy.

You Will Need to Comply with the Department of Labor’s New Fiduciary Rule

One of the biggest developments for the year 2017 concerns the passage of the Department of Labor’s new fiduciary rule. This rule has been a long time in coming.

It is intended to help make sure that millions of American citizens who are saving for their retirement will be able to have access to investment advice that is truly in their best interest. The rule is especially harsh regarding any perceived corruption or “insider knowledge” on the part of financial advisors. As a result, members of this industry will be on their guard when it comes to complying fully with the Department’s newest ruling.

Knowing the Latest Predictions is a Matter of Being Prepared to Profit

The more you know about the latest predictions being made by financial advisors, the better position you are in to profit from them. These predictions concern you directly, so it’s an excellent idea to find research them carefully.

They will have a direct effect on the way that you invest your money in the coming year. This means you may have to adjust and rethink the way you handle your investments, as well as where and when you decide to do so.

The advice of your financial advisor will be key to staying fiscally healthy in 2017. Be sure to give them your full attention.

Stock Market Investing – Yes or No?

Stock Market InvestingWhen you are considering what type of investments are right for you, it is important to take a look at stock market investing. You will find that there are many great opportunities when it comes to investing in stocks.

However, the stock market isn’t for everyone. You need to decide if you are ready to invest in stocks before you start throwing all your savings into the market. There are some things that you should consider before you make your decision whether or not stock market investing is right for you.

Protection Against Inflation

We all know about the rising cost of living. No matter who we are, we have had to deal with inflation. When we invest in the stock market we are going to be protected against this inflation. However, this is something that isn’t guaranteed.

It is never 100 percent sure that your stocks will always go up. There are index funds that are pretty solid when it comes to steady growth. Stock market investing, when done in a conservative manner, can help you to protect yourself against the rising cost of living and inflation.

The Risk of Loss

When you are looking to grow your money, stocks are not the safest bet. There are other financial tools that will offer much less risk. Stock marketing investing can give you some great returns, but it is never set in stone how much these returns will be.

You must understand the risks associated with stock marketing investing before you put all your savings into the stock market. There are different personalities when it comes to investing. You need to make sure that you have the ability to deal with high amounts of risk if you are looking to get into stock marketing investing.

Unclear Gains Mean It Can Be Difficult to Plan Your Finances

If you are counting on your stocks as a large part of your financial future, you will soon learn that there is very little planning that can be done for these gains or losses. It is extremely hard to predict what will actually happen to your money in the market.

This can make planning for your financial future a hard thing to do. When you are looking into what type of investment is right for you, assessing the uncertainty of the investment is an important thing to do.

The stock market can be a great place to invest your money over the long run. You need to ask yourself if you are someone who can deal with the risk and uncertainty of the stock market. This will be a big indicator of your success in the future of your stock market investing. If you find it difficult to deal with uncertainty and high risk, it could be a good idea to invest with tools that are more reliable and predictable.

Sometimes the only way you can find out if the stock market is right for you is by investing. If you enjoy your experience, continue to invest in the market.

 

Stock Investing Without Too Much Risk

Stock Investing for Millennials

Stock InvestingMillennials are more likely than other generations to be risk-averse.

They hold 52% of their savings in cash and only 28% in stocks, according to a UBS study. For other generations, the weightings are nearly the reverse: 23% in cash and 46% in stocks.

A 2013 Accenture report found that 43% of Millennials identify as conservative investors, whereas just 27% of Gen Xers and 31% of Boomers do.

And 43% said they would never be comfortable investing in the stock market, in a MFS Investment Management study.

Invest Aggressively Now

But investing conservatively — or investing very little and holding your money in cash — runs counter to conventional investment advice for the young, which says, invest aggressively now, while your long time horizon will allow you to recover from any losses, so you can reap the compounding benefits of growth.

If you’re a gun-shy Millennial investor or a risk-averse investor of any age, learn how to try out stock investing without getting burned.

5 Tips for Stock Investing

1. Learn about the various types of investments.

2. Invest in a broadly diversified portfolio of low-cost ETFs (exchange traded funds) and index funds. 

3. Don’t try to beat the market; participate in it.

4. If you want to try investing in stocks, set aside a small percentage of your portfolio — and be willing to lose it all.

5. To mitigate the risk even further, look into Motif Investing.

Get all the details here.

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