So you want to get into the investment game and you’ve been sitting on the bench. The Standard & Poor’s 500 index is up around 18 percent this year through September and you’re apprehensive about getting back into the game now. Should you just run onto the field and start playing or wait for the coach to put you in at the right time?
The following are three essential questions that every investor should always consider before putting cash to work.
1. What is the money for?
It sounds simple enough, right? But there are many permutations to this foundational question since how you answer it will drive many other investing-related questions. The answer correlates to the goal of the investment, whether it is buying a new car, saving for college, retirement or something else. It is important to be specific about the goal of the investment because each goal should have a timeline associated with it and each goal should be categorized as either a “survival” or a “lifestyle” goal. Read More…