Determining how you choose to invest is often not determined by what is “in style” at the moment, but rather understand who you are and what you are trying to achieve. For years mutual fund companies would tout “The Top 10 Hottest Funds for XXXX Year”, you rarely see that anymore because in looking closer at the list, often who made it this year, was nowhere to be seen in the following years. Investing is not as much about what is “HOT” or “SEXY” as it is about your personal style! HOT and SEXY investments come and go, and typically when they leave, they leave you feeling a little less weight in your pocket and irritated at the advisor who led you down that path. Your style and personality are solid, tried and true. You know what you like and how something “feels”. Follow your instincts first and if you find yourself still in a quandary remember:

THREE RULES TO LIVE BY TO FEEL GOOD ABOUT INVESTING:

1. Understand The Investment. If you cannot understand how it works, on a single sheet of paper, bar napkin, or back of golf score card, DON’T INVEST. Being able to clearly communicate what you purchased. If it is more complicated than a single piece of paper, it is probably too good to be true!

2. Understand the Terms. Know how long you have to be invested, the rate of return, guarantees, how to get out, and how much are you paying to have the luxury of this great investment? Again should be straight forward, easy to understand, and not give you that “unnerving feeling” in your stomach. If you get that feeling, keep looking!

3. NEVER LOSE MONEY. This actually I adopted from a pretty famous investor; Warren Buffet. To me, still critical! There are lots of good places to invest that will provide good returns and not lose money. More people today are concerned about the return of their principal and not so much return on their principal. Place enough money in good, solid safe places and you won’t have to worry in the future.

Styles come and go. Perfect style in investing is very similar. Investing in style requires time to complete, being true to you, knowing what you want, and working a good plan.

John Navin,
John Navin & Associates

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