Financial planning on a budget can seem like an insurmountable challenge. If you don't have a big portfolio, how can you maximize your investments to provide a better return? Here are four ways that anyone can try.
Use a Fee Only Adviser. Do you need a financial planner? This person helps you take charge of your overall financial strategy, setting and meeting goals, as well as making adjustments as necessary. But many financial advisers receive commissions for the financial products they sell to their customers. A fee-only planner charges one set fee for all their work in your behalf. This helps you have confidence in their choices and saves money.
Choose No Load Funds. Mutual funds often "load" their fees either on the front end or the back end of their product purchases. "Front end" loaded items charge a fee upon purchase while "back end" products charge it upon the sale. A "no load" fund charges no fee on either end, meaning you keep more of the money invested in the fund rather than spending it on fees.
Invest for Dividends. Dividends offer an advantage that other stocks don't. They provide a more stable return on your investment — the dividend paid per stock share — that increases your investment quarterly. The upside of a high dividend-paying stock is that you can reinvest the dividends each period, building your initial investment faster than just a rising and falling stock price. Dividends are also an excellent choice for those who want to take out money from investments while still growing it.
Include Index Funds. Funds are generally divided into two categories: passive and active. Active funds are managed by a person, who makes active choices about buying and selling as well as the makeup of funds under their charge. Passive funds generally follow a particular pattern or basket of stocks and bonds (often referred to as an "index") and invest according to changes in these set baskets. Passive funds have much lower fees due to their lack of direct oversight, which makes them a valuable part of your investment strategy.
These few, proactive changes in your portfolio can add up to hundreds or even thousands of dollars saved from fees and indirect costs. That's more of your money working actively for you. For more information on how to incorporate these strategies in your own portfolio, talk with a fee-based financial planning professional in your area today.
Share5 December 2018
Adoption is a beautiful thing. Raising a child someone else had is a completely unselfish act of love. Do you want to adopt a newborn in the near future but are afraid you won’t have the necessary funds to do so? Consider meeting with an experienced financial adviser. This professional can sit down with you and recommend viable fundraising options. For instance, you might want to take out a loan. Or you may wish to sign up for a grant. Obtaining a tax credit is also an alternative. On this blog, I hope you will discover effective tips to help you raise money for an upcoming adoption.