Commitment to Raise Financial Acumen

Commitment to Raise Financial Acumen

Having spent more than two decades working in the financial services and advisory businesses, I have observed a variety of behaviors exhibited by clients as they consider investments either for themselves, for their families or their businesses. Some associate investing with speculation that, in their minds, borders on —gambling. They view investments as volatile because they are uncomfortable “risking” assets in the hopes of obtaining potentially high returns.

Others, looking for quick profits, are willing to try to “time the market” or put their money into something extremely speculative for a quick return.

Still others see investing as more of a long-term, methodical effort to save for the future.

In fact, investing is a little of all of that and more. First, let’s face it, all investing involves risk. There is no ironclad guarantee that any investing strategy will be successful. However, investing done wisely with professional advice helps move the needle. Just a little time spent understanding what you’re doing can provide results and sometimes the gains are remarkable. Certainly it’s worth the effort to seek investment opportunities that can potentially exceed the meager interest rates offered in today’s market.

Investing in a carefully planned and prepared manner is the best way to manage and accumulate wealth no matter who you are or what your realistic investment objectives are.

Why? Because investment planning is about discipline and patience as well as the understanding, that while it involves regulations and judgments, it doesn’t have to be difficult.

Today, for the first time an entirely new class of potential investors will perhaps receive the elusive nod and get invited into the world previously limited to the top 2% otherwise known as the “accredited investor” category. That group was defined not by financial history or acumen but simply by how much money they earned. Times change and with the passage of the JOBS Act of 2012 by the U.S. Congress and by taking advantage of existing securities laws, a much broader spectrum of the public has been invited to the party. Sort of. Well, at least on paper.

Let’s hope the regulators stick to the key tenants of the JOBS Act and make those final strides necessary to clear the way and open more doors for the remaining 98%, otherwise known as the unaccredited investor.