If you are in a WhatsApp group or two, you have undoubtedly come across a variation of this conversation:
“My money market fund is not making me money. What are you people investing in that is making you money?”
Almost as if people have been sitting on the edge of their seats waiting for this question, the WhatsApp chat comes alive. Recommendations start flowing—different investment options, along with contacts of financial consultants who can help kickstart the investment journey.
Such conversations should be encouraged and celebrated. In that spirit, I usually feel the need to share a few pointers that may help you narrow down the right investment for you:
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What is your investment objective?
What specific goal do you want your investment to achieve – income, wealth preservation, capital growth, etc.? -
What is the time frame for your investment?
How long do you intend to hold it – 3 months, 3 years, 10 years? -
What is your investment risk profile?
What level of risk are you both willing and able to take? Remember, all investments carry some degree of risk. -
What is the liquidity of the investment?
How easily and quickly can you access your money if needed? -
What is your return expectation?
What kind of return are you expecting? Does it adequately compensate you for the level of risk involved?
Investing is great. But investing when you are confident that you’ve chosen the right option for yourself is even better.
Above all and before all, do this: Get Wisdom!
Write this at the top of your list: Get Understanding!
Proverbs 4:7 (MSG)