Your investment questions, answered
EECU’s investment services team works each day to help our members choose investments and build portfolios that support their immediate and long-term financial goals. And in doing so, our advisors have become familiar with common concerns and misconceptions of the investments world. Here, they weigh in on a few of the most frequently asked questions.
Can you get me higher returns on my investments?
The short answer is, “Yes.” The long answer contains an honest question: “How much risk are you willing to take?” You see, there are always investments that offer higher rates of return, but it’s not comparing apples to apples. Higher risk—and sometimes lower quality—investments often have to pay higher yields to attract investors. Not all investors can afford or stomach the risks associated with these. There are, however, investments that balance out the risk and have a good track record of producing above-average income without as much risk. Of course, it’s important to note that these still carry more risk than a federally insured savings account or certificate of deposit (CD).
Can I get to money I’ve invested if I need it?
Ultimately you can sell most investments if you have to. What investors need to be aware of is the penalties involved or the possible losses involved if the sale occurs during a downturn in the market. Some investments have small “windows” that allow for selling but other times you are stuck waiting to sell. I (Dan) never recommend people invest potentially needed money into the market. The market is for longer-term money that can withstand the fluctuations. I recommend establishing emergency savings to keep available before thinking about investing extra money in the market.
Can I get monthly income from an investment?
There are investments specifically designed to spin off monthly income. Most people think it has to be in growth stocks only but there are also dividend- and interest-bearing investments that pay monthly income. Annuities are also a possibility for a portion of many investors’ portfolios depending on their specific needs. There is no “silver bullet” investment that does it all, but a good combination can help supplement those monthly gaps in income.
Should I invest in gold?
While we can buy gold as an investment, and it may go up in value, I (Barry) prefer assets that reward you for holding on to them with interest or dividends. Gold is an all-or-nothing deal that depends on market conditions while other investments may provide you with income during good times and bad. There may be room for gold in your portfolio, but learning a little more about it may help you decide if it’s appropriate or not for your situation.
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Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.