Investment Advisory
In Phoenix, Arizona

Common Investing Mistakes Than a Phoenix Investment Advisor Can Help you Avoid.

1. Bad source of advice. A successful investor must be diligent not only with his investment choices but also with his financial advice sources. We work solely in your best interest, our investment advisors provide you with the best investment advice and strategies based on your current financial situation and investment goals. 
2. Not having a clear goal and a plan. Not having an end goal and a plan can result in an uncertain investment pattern that may lead to greater losses. A Certified Advisors CFP® will help you realize your goals and design a personalized investment portfolio that will help you achieve your short and long-term goals
3. Inadequate Diversification.  As the famous adage says, don’t put all your eggs in one basket. We know how important diversification is. Having a diversified portfolio can help you manage the risk of losses by spreading assets among different investments and asset classes.
4. Bad financial management. Building a financial foundation before jumping into the markets is highly advised. A cash reserve for emergency or near-term goals should not be invested, because the market could be volatile at times, and losing the money that is intended for something else is something you don’t want to happen. 

There are several types of investments to choose from. While some of them are beginner-friendly, others require more experience. Each type of investment offers different levels of risks and gains. 

Types of Investments

1. Stocks. Also known as shares or equities, stocks are units of ownership in one or more companies. Companies sell shares of stock to investors to raise cash. The success of this type of investment depends on the success or failure of the company. Stock investors make profits when the value of the stock they own goes up and sell for profit. Stock investors may also gain profit through dividends as some stocks pay dividends to their investors. However, the value of stocks can be volatile from time to time. Investing in stocks is best for long-term investors who can withstand the ups and downs.
2. Bonds. Bonds are considered fixed-income investments and come with a lower rate of risks. When you invest in bonds, you provide a loan to the bond issuer. Companies and other institutions usually issue bonds to investors to raise money for new projects or to refinance existing debts. A bond comes with an agreement and terms regarding interest payments and the date on which the loan must be paid. Bond investors gain profit through regular interest payments until the maturity date of the loan. 
3. Mutual Funds. In simple words, mutual fund companies pool money from investors and use the money to invest in other securities like stocks, bonds, and other assets. When mutual funds make profits, investors are distributed a proportion of that. When the mutual fund share’s value goes up, you can also sell it in the market for profit. Note: When investing in mutual funds, a fee called the expense ratio has to be paid annually.
4. Real Estate. Real estate is one of the most popular types of assets. There are many ways a real estate investor can gain profit. Investors can purchase a house, flip and resell it for a higher price, or make money by renting out the property. Real estate investing comes with many advantages and could be rewarding but just like everything, it also has its fallbacks. Investing in real estate may also come with complex tax implications.