I would like to introduce myself and take this time to say how appreciative I am to be able to write some articles on finance and money matters for Girlfriendit.com and all of its members. When I was asked if I would write some articles for the site I was excited because I feel that there is so much to share and I am grateful to be able to do that here. I have been a financial advisor for two different firms and also have an MBA in Banking & Finance. I studied for my MBA while Enron, Tyco and WorldCom were all being dissected for their cases of corporate wrongdoing that left so many people financially devastated. This gave me an ever-present passion for investor protection. My heart in all of my endeavors is that I am able to equip people to become stronger and more informed in their financial decisions.
This environment and the devastation that hit so many people prompted me to leave the financial service industry and write a guide called, “A Guide to Taking Control of Your Investments.” It is being published for release late summer 2009, and it breaks down into two sections. The first section is about investment basics. It offers you investment fundamentals that you need to know, even if you use a financial professional to handle your investments. The second half of the book is an inside look into the financial service industry. It offers some important facts and practices that you need know about in order to decide whether or not you should use a broker or if you can handle your investments on your own. I left Smith Barney so that I could write that guide and also publish a monthly subscription based newsletter, “A Clear View,” for further investor protection (www.aeterry.com/resources). The industry is calling for more transparency so this is my attempt at beginning to level the playing field between investors and the industry.
Well this past year has brought many of us to the place of having to rethink much of our spending, investing and money management habits. We have seen companies go out of business that have been in existence almost since the beginning of the financial markets. We have seen the housing market, stock market and just about every other market plummet to new lows. We are left with the necessity of taking a new look at where we are, where we want to go to, and what we need to change in order to get there. In an environment where everything changes at such a fast pace you need to know where you are going.
When thinking about the material for this article, I wanted to (as I do in my guide and newsletter) Keep It Simple! Many investors’ 401k accounts and other investment accounts have been significantly diminished by our current economic conditions. Some people that thought they were going to retire in the next 2 or 3 years now have to wait another 5 or 7 years because they took on too much risk in the financial markets. We now need to take a second look at our objectives and goals. If you do not have a financial plan, you need to get one. If you have one and have not looked at how this past year and a half has affected that plan, you better take a look and have some aspirin handy.
If you do not have a plan, that means that you do not know, specifically, where you are headed. If you do not know where you are headed, then any road will look good to you. But if you have a plan and you know where you want to be in 5, 10 or 20 years from now, then only the road that gets you to that exact destination will give you peace and satisfaction. It is not about how much you can make in the market, it’s about how much you need to make in order to meet your goals. Why fret over trying to make 20% in a year when you only need 10%. Why go looking for a Hummer when you are really only looking to save on gas! Now everyone is different and no two plans are going to be exactly the same, so make sure that your plan is tailored to meet your needs.
Constructing and maintaining a plan will allow you to take on only as much risk as is appropriate for you. This is where many people have gotten into trouble in recent times. They have taken on more risk than they could afford, and then close to the worst case scenario developed for them. Many didn’t know their risk tolerance because they had no game plan or financial plan to work with. Those who had a plan but didn’t modify it along the way, were working with skewed and possibly incorrect goals and expectations. The bottom line is this; if you don’t have a plan, get one. If you have one, take another look at it and make sure it is still relevant for you and your goals and dreams. So as we approach this new market and try to put the pieces back together, let’s try to operate in a more informed position. Take control of your finances and your future. Next time I will address some interesting facts about how women are targeted in the financial marketplace. Until then, be well and take control.
Sincerely,
Andrew E TerryThis e-mail address is being protected from spambots. You need JavaScript enabled to view it
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