Everyday a new way of investing comes into play. And typically the new product or service has been painted to convince you that this is the best investment product for you.
However, is that really the case?
What is not explained is that you are handing over control of your investments to others. Those others may not be any smarter than you, but they have come up with the latest product and they have a marketing budget that will draw in the investors.
Some products which were developed to control other people’s money are:
- Mutual Funds, developed in the 1920’s.
- ETF’s, which became popular in the US in 1993
The newest product is Robo-adviser
What is the Robo adviser?
It is an app which has a website which guides investors through a series of questions about their age, salary, financial goals, and risk tolerance. They usually invest in one of several model portfolios, which are made up of a mix of low-cost exchange-traded index funds. The programs automatically buy and sell fund shares to keep assets in balance, while gradually adjusting the mix to lower risk as the investor ages.
While a human investment adviser may charge a percentage of assets per year, Robo’s may charge 0.25 percent or less. Some are free because the developer of the product earns revenue, in part, by investing clients’ money in their own ETFs.
I am not saying you cannot make money when you invest in these products. However, what I have experienced during the last 30 years is investing in individual stocks allows you to stay in control of your money.
Anytime there has been a major event in the world those who own individual stocks are able to analyze and act accordingly. However, if you have turned over control of your investment funds by buying a product you really can do nothing.
The world is continually evolving and new ideas come out and are marketed to everyone.
The question I ask you is “Is it really smart to invest in a product losing control or invest in individual stocks maintaining control?”
Let’s have a conversation
Let’s get together, face to face. I will help you experience — and understand — how your money will grow in the world of long-term investments. Let me show you how much fun it can be!
Call me, Vicki L Wille, today at 702-878-9562. Or click the button below and…