Investments

The most common way to grow your savings is through investing. Investing often provides greater returns than high-yield savings accounts, Certificates of Deposit (CDs), or Treasury bonds. Unfortunately, many people opt for those less-efficient means of acquiring more capital due to the risks involved in investing. We’re not here to tell you that investing is a guaranteed way to earn massive amounts of money. However, a¬†professional financial planner can help you manage your investment accounts and avoid any type of misinformed investing.

You’ve Got Options (no pun intend)

The word “investments” is actually an umbrella term used to refer to any number of purchases made in order to generate more income. Investments can include financial securities, real estate, or even solid gold.

As you can see, you have a diverse range of investment opportunities. Therefore, you can diversify and invest according to your preferences. At Potter Financial, we take into account various factors, such as:

  • Your current net worth, assets, and debts
  • Income (if applicable) or need for income
  • Risk tolerance
  • Goals (long-term and short-term, specific life events)

Mutual Funds

A mutual fund is a portfolio of various stocks, bonds, and other financial securities. Mutual funds have a manager who decides which securities to buy and sell. The shares that you buy of a mutual fund are used to invest in securities chosen by the fund manager. As a result, you receive a share of the income the fund generates relative to the number of shares you purchased.

Mutual funds are a great option for many investors. The portfolio is externally managed, which gives you the ability to rely on someone else’s experience and knowledge of the market to increase your own capital. Most mutual funds have excellent diversity, which typically results in moderate returns over the long-term.

Exchange-Traded Funds (ETFs)

ETFs are a form of investment, in the sense that each exchange-traded fund represents a portfolio of securities. However, the difference lies within the name: mutual funds can only be traded at the end of the trading day, while exchange-traded funds can be traded just like stocks. ETFs typically follow a particular index. For example, one ETF may imitate the overall market, while another represents the market activity of the energy sector. These funds offer immediate exposure to a certain market, which can increase your portfolio’s diversity.

The decision to invest in ETFs may depend on your goals and risk tolerance. Mutual funds are actively managed with the goal of generating income for investors. On the other hand, ETFs serve more as “trackers” of similar companies. As a result, ETFs tend to see greater fluctuation and fewer capital gains. However, ETFs may cost less per share and provide tax advantages to investors. Furthermore, if you don’t want to hold your investment, ETFs provide far greater trading flexibility. Following our free consultation, the financial planners at Potter Financial can advise you regarding which funds would be best for your portfolio.

Individual Stocks

With individual stocks, you have more control over the assets in your portfolio. However, that’s not always a good thing. It’s important to decide how you select stocks, which will be based on your financial goals. Also, diversification in the stocks you choose to buy is vital to the health of your portfolio. When buying individual stocks, you have the ability to trade daily, go long or short, and much more. However, just because you can do something doesn’t mean you should. Whether you prefer to hand-pick your stocks one-by-one or prefer a ready-made portfolio, Potter Financial is here to help you make wise financial decisions.

Other Investments

Diversification doesn’t only call for investing in different stocks. Each form of investment carries with it different potential risks and returns. The safest way to make sure that you fare relatively well, even during a down market, is to diversify the investments themselves. Your other options include:

  • Options
  • Bonds (Treasury and corporate)
  • Index funds
  • Certificate of Deposit
  • Annuities
  • Commodities
  • Real estate

Call Today for a Free Consultation

Schedule a free consultation with our financial planners to learn more about your investment options and investment accounts. When you plan and invest with Potter Financial, you have the opportunity to invest in portfolios that an independent investor would not. Furthermore, our financial planners can manage your accounts for you, offering regular advice and account maintenance. Call Potter Financial today to learn more about how you can earn more money, using the money you already have.
You can reach out to us by calling (713) 972-1316.