Financial Services
Registered Representative With:
Fortune Financial Sevices, Inc., New Brighton, PA
Licensed to sell
Mutual Funds, IRAs, Employee Pension Plans
Life, Health, and Disability Insurance
in the state of Pennsylvania.
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I. Why Invest?
It's an irony that people tend to think more about the future as they age. Perhaps that is because there is less of it to think about. When you are young, it is easy to put off thinking about the future. Live for today. There's plenty of time to think about tomorrow. As we age, we realize that the future has arrived and we are unprepared to face it. We suddenly realize that we are facing a future funded by a shaky social security program and, if we are lucky, an also insignificant pension when we retire. Retire? For most of us that can be a truly unreachable goal. We will have to work all our lives, like it or not. Then there is college for the children. The cost of one year's tuition can amount to a sizable mortgage on a home - just as retirement age approaches. Many people believe that saving for the future will help. And it does! Saving is important. Saving is putting money aside, developing a reserve. Saving is putting money under your mattress, or in a savings or checking account, U. S. Treasury Bills, short-term CDs or a money market account. Investing, on the other hand, can mean making money. It involves planning and being involved. Investing is an ongoing process that changes as your needs and goals change. Investing means thinking about the future - TODAY. Have you ever heard of the "Rule of 72?" This rule demonstrates the difference between saving and investing. Here's how it works: You have $1000 to save/invest. You put your money in a passbook savings account paying a whopping 6% interest (A good deal today!) Here's what happens to your money. It will double every 12 years (72/6).
Now, we are all smart enough to realize that the bank is going to be using that money to make money. Therefore, it will have to be invested at more than 6%. Generally speaking, your money will be invested at no less than double the interest you are receiving, so the bank will be making at least 12% interest. This means that your money will actually double every 6 years (72/6.)
As you can see, the bank turned your $1000 savings into a $56,000 moneymaking investment for them ($64,000 value less $8000 paid to you!) Which would you rather have - a $64,000 investment or an $8000 savings? If the bank can turn your $1000 into $64,000, why can't you? I am here to tell you the good news - you can! Let me repeat that - you, too, can invest. Investing is easy. So, let's get to it!
II. How to Invest The first step to being a good investor is to dream. I realize that all your life you've probably been told to stop dreaming and "get real." But, dreaming is the first step to good investing. Dreaming means looking ahead to your future, deciding what you want and where you want to be. Dreaming includes planning ahead to accomplish those dreams.
Here are four easy steps to help set your goals: These steps may sound pretty simple to you right now. Sit down and seriously attack the first three steps. It may be harder than you first thought. Is it really necessary? You bet! Now that you've set your goals, you have some important choices to make. There are many investment products available today. There are stocks, bonds, "cash" investments, mutual funds, packaged products and qualified retirement products to name a few. Find the products that meet your needs and your goals. For each of us, that will be a different mix of products. For each of us, that mix will change as our lives, our dreams, and our goals change. Take a few minutes to study the Investment Pyramid below.
Begin your financial program on Level 1 and build up. By building from the bottom up, you can design a diversified portfolio that includes financial growth and protection. Risk is the possibility of suffering harm or loss. It involves uncertain danger. All investments carry risk. Level 1 products carry the least amount of risk. Level 4 carries the highest risk. While all investment products involve risk, not all types of risk are the same. Market risk is the risk of losing your principal due to market volatility. Inflation risk measures the effect of continually rising prices on your investment. Timing risk is the risk of buying or selling investments at the wrong time and losing money. Reinvestment risk is the risk of not being able to reinvest interest income or bond principal at the same rate. Your investment goals, your age, and even your personality will help determine what your risk tolerance is and how aggressive (risky) your investments will be.
III. Ready, set . . . now what? As in any new activity, if you want to succeed you must do your homework before you begin. Set your goals. Take inventory of what you have. Talk to someone who can help you. Sandra L. Dauer at Precise Accounting & Consulting Services, Inc. is a licensed investment broker with Fortune Financial Services, Inc. She can help you decide what investment products will take you where you want to go.
IV. For Women Only Experts agree that women have what it takes to be great investors - better than men! Unlike men, who often jump into things without much information, women do their homework! Men tend to do things on their own. Women network and consult with others - women ask for directions. Women ask questions about things they don't understand. Women are usually pros at multi-tasking - they can keep track of a number of investments at the same time. Finally, women are good at setting - and reaching - goals. There are some obstacles women investors must overcome. One obstacle is math anxiety. Understand that investing is not about math. It is about concepts and planning. Women are afraid of losing money. Start small and build up your confidence. Focus on the outcome - your dreams. Don't get overwhelmed. Take one step at a time and ask lots of questions. Most women are nurturers and look out instinctively for others. In investing, you must be selfish! Think of your own financial future. Don't underestimate yourself. Don't overestimate what you need to start investing. Start small and educate yourself. You have the power to achieve your dreams! Start now! Get active! Invest. Stay active! Diversify! Enjoy your dreams come true.
V. Available Funds
This is a partial listing of available Mutual Funds. If you are interested in any fund not listed, just let us know. As an independent agent, it is possible to provide our clients with any fund available.
VI. Variable Annuity Products
Other annuity companies available upon request. |
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PO Box 336 Ambridge, PA 15003 |
724-266-5230 Phone 724-266-5287 Fax |
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