By Hadassah-Essther Osimen
Welcome to a new year, new beginnings, new opportunities. I hope you thoroughly enjoyed reading my series on managing your money, making it do more? I will recommend that you go over them again and discover how you can apply the principles to yourself and business this year, 2022.
I thought we should start on a whole new pedestal on investment options. In the beginning of the year, you want to decide how your life should flow financially. Many enter the year somewhat broke from the christmas spendings. In the West, I know people tend to pick up new jobs to kick start their year on a fresh space. Others with reasonable funds might choose to use the month of January to invest their lump sum into one portfolio or the other. Sadly, there was a significant drop in interest rate for term monies placed in banks and rather too much scam on people for other placements that were not with recognized banks.
Nonetheless, you would be able to invest in several opportunities. I am going to use the pieces for this month of January to prepare you for your options for investing in a more elaborate manner. Let me first give the following guiding principles which you should hold up your sleave before investing:
1. Go for the Big Names – Be mindful, even weary of so called investment schemes that are unknown, are not popular, are new and not being advertised on television and other big media, etc. If they are not big, don’t go for it or at least, wait a while and do a thorough research before adopting it. Some of the research you should do are further iterated below.
2. Make Sure They Have a Physical Office – Not only should your investment service provider have a physical office, they should have one in your country. In addition, their so called physical office should not be in a location that is obsecure. Rather they should be in the heart of the financial business district. Investment houses situated in places that seem to be away from the central business district should not be trusted. Notice this.
3. Enquire About Their Directors – Who owns it? Who works there? What is their reputation? In banking, there is such a thing as ‘Cs of Credit’. Before loans are granted to individuals, a check as to their credit worthiness is carried out. Carry out a check on how safe your money will be.
4. Look at their History – They may not have a history if they are just beginning but you can still trace their background. For instance, finding out the people behind its formation and where it is coming from is useful.
5. If in Doubt, Invest a little – Well expressed, put in a little if you are not so sure or have even the slightest inclination of doubt. Your money must not fly.
6. Beware of Bogus Interest Rates – Check the interest rates on offering in banks, up to Three banks. Many investment Houses only offer a fraction higher than these. Remember they are operating in the same economy.
Granted that some investment options might be coming from new opportunities with juicy interest fractions relative to those on offering from the banks but this is very rare and will be clearly visible from the analysis.
7. Read The Investment Document – No real investment opportunity will come without a clear and well detailed documentation of the product into which you are investing. Please read the documentation carefully. Do not be in a hurry to put your money down because somebody said it is good. Read the materials. If you are in doubt, please speak to a Financial Adviser or similar professional. Even when buying something like stocks from the secondary market, use a well known stock broking firm, plus in addition, conduct some analysis such as observintg what is going on in the stock into which you want to invest, how the organisation is doing generally – enter their building and observe their services, it impacts on the market share sooner than later.
8. Explore as many investment options as you can have as possible. Ask questions about them. Generally, go for big when searching for investment companies. Don’t go for unknown ones.
9. Make Sure You Understand it – If you do not understand what you are getting into, do not do it! If it is not clear enough, just leave it please. All investment options should be understandable to the investor. If you are already reading this, chances are you should understand investment products well enough. Don’t let anyone tell you it is too complicated for your understanding.
9. Make Some Calls – Call the organisation, call their directors, look up their websites, social media handles etc.
10. Mind The Rush – Unless you are investing in a public offering with a clear timeline, please mind the rush. Do not be in a hurry to put your money down. Be very weary of investments where they seem to be asking you to put in your money ‘now, now’. They may say you must put it in this very day or you will loose the opportunity. When being rushed to put in your money, run from them. They do this as a strategy to stop you from reflecting on what you wish to do.
In future I will iterate some safe investment products for you subject to their paying for my mentioning them. In the meantime, keep your money safe.
Have an excellent week ahead. To be mentioned on my articles or advertise on my column please email estherjoy600@gmail.com.
Remember to always go for gold!
