Ready or Not – How to Discover and Deliver the Best Investor in You?
Ready or Not – How to Discover and Deliver the Best Investor in You?
Ready or not – how to discover and deliver the best Investor in you? Many questions if they are investors, and many feel they don’t have the knowledge or funds to get started.
Surprise!
When you earn a paycheque in the US and Canada, the employer deducts amounts from your earnings. Part of these deductions goes to the federal government to fund old age security or a government-paid pension when you hit a certain age. So you are an investor whether you like it, think it, or do it; the government invests on your behalf for your golden years (retirement).
Your Role as An Investor
There is a lot of debate on many types of investors. But, first, you are either an institutional investor, someone who is a professional and, for the most part, manages other people’s or companies money.
The second Investor is an individual investor, where you are an active investor or a passive investor of your money.
Purpose
For this blog and teaching, I am focused on individual investors only.
Get Off the Sidelines – Ready or Not -How to Discover and Deliver the Best Investor in You?
Before I outline individual investor types, my goal is to ask you to move from a passive role investing to an active part of investing. Further, to ask you to take more personal responsibility for your investments.
Why?
I come from the belief that no one will take better care of you than you if you have no interest in managing your own hard-earned money and are happy to hand it over to someone else, fine.
But if you have made no effort to see what it takes to play an active role in your investing. Therefore, remember you will get the result you deserve.
Plan Truth
The cost of someone else looking after your hard-earned money comes at a price. Above all, no one is managing your money for free.
There are costs. Most costs include a fee to buy, sell or redeem an investment, withdrawal or deposit fees, interest fees, distribution costs, administration fees, management and custody fees, and, my favorite, other, a catch-all line.
The True Price
In addition, over the life of your investments, the professionals handling your money make a more significant income from your money than you do.
Author Mark J Heinzl in his 2001 book, Stop Buying Mutual Funds: Easy Ways to Beat the Pros Investing On Your Own, talks about the madness of the low return on investing in mutual funds. (still available on Amazon)
However, if you want an updated spin on this message, read the blog Don’t Buy Mutual Funds, Buy The Company!
The author, Dividend Ninja, ‘s message is clear; one of his examples is that he made a 14% return on the value of the mutual fund company. However, the return on his money managed by the mutual fund company was a paltry 0.4%.
Types of Investors, Do You Recognize Your Type or Types?
If you want to play a more active role in your investment portfolio, let me outline the type of individual investor types there are:
- Automatic Investor (if you are paying into any government program or a company pension play), and the amount comes off your paycheque; you have automated your investment process. Remember, you could also contribute monthly money to other saving programs, such 401K, registered savings account, tax-free savings account, etc.)
- Daily Stock Market Observer, you have given your financial person permission to invest your funds, but you like to observe the return and growth of the investment, positive or negative.
- Engaged Trader, you have opened a self-directed account, making your own decisions.
- A socially Conconciuos Investor is a person purchasing investments for the good of the planet or causes. You have a robust belief system and put your money where your mouth is.
- Angel investors may have access to funds and want to work with entrepreneurs as first-time investors or venture capital play.
- Bargain Hunter is always looking for a great deal.
- Company Fan loves a company, its products, and active user of said products. We may not get the most significant return through value growth or dividend payout, but this is of lower concern. (ie. Apple, Mircosoft)
- Investment Tweaker likes to fine-tune their investments but never radically.
- Person to Person Lender is a money person behind a small business or individual.
- Money Lender to family, friends, and networks
- Property (my personal favorite)
Ready or Not? – How to Discover and Deliver the Best Investor in You?
Do you recognize yourself in these investor types? In addition, if you are taking an active role as an investor, are you now ready to deliver the type of Investor you are to the world?
Listen to a recent podcast I was a guest, Ready, Set, Goal – Real Estate Investing the Right Way with W. Rick Harris, and consider investment real estate as an investor.
About the author, W. Rick
Dynamic entrepreneur and sales management strategist; with over 20 years of experience in his field. Rick has achieved multimillion-dollar sales growth while providing award-winning sales leadership and coaching in highly competitive markets.
An active real estate investor since 2002, Rick has developed his purchasing strategies and processes specializing in vacation and recreational properties, single-family homes and condo rentals.
In 2005, Rick re-financed his first rental property to fund the purchase of more positive cash flowing rental properties.
Rick sits on the Board of Directors for several condominium associations and is an active President and Treasurer. Sitting on these boards has given him a wealth of experience and insight into working with property management companies.
Rick has partnered with several joint venture associates and is committed to creating a positive investing experience for his associates by finding the properties, developing the investment, securing the financing and executing a proven positive cash flow system.
Why should you choose Rick as your Online Vault to Investment Real Estate Success Advisor?
An outstanding mentor and coach, Rick will work with you to build your investment real estate business starting from the foundation. From guiding you through the market research and critical drivers, building your team of trades, realtors, and lenders to attracting the investment real estate properties right for your portfolio and the joint venture partners to help you grow.
Through direction and training, Rick will help you develop your investment real estate goals and be a catalyst for you to purchase your first investment real estate property so you can build a strong financial foundation unlocking sustainable wealth and a living legacy for you and many generations to come.
Thank you for taking the only asset that gives us so much through life, but we can never get back our time.
Please join Rick on living his mantra:
” Prosperity for all aspects of your life forever.” W. Rick Harris