Four Investments to Avoid
Many annuitants sell structured settlement payments in order to put their money into higher-yielding investments. However, investing can be risky since it’s impossible to predict the outcome of an investment. No matter how much research and planning is done, one can never predict with 100% certainty what kind of return an investment will yield. That said, millions of people make money on investments every day. As an investor, the best way to avoid bad investments is to learn as much as possible about the various markets, investments, and strategies. And, it is always advisable to consult with an experienced professional.
While nothing is certain with investments, there are, however, some good guidelines to follow about what investments are best avoided. Read on for four investments average investors generally should avoid.
Essentially, commodities are goods and materials that people use in their everyday lives, such as sugar, wheat, gold, and currency. While investing in commodities isn’t necessarily a bad idea, it is a very risky proposition. Investing in commodities means betting on the direction of the future price of a specific commodity, which can be influenced by a multitude of factors.
The speed at which an entire investment in commodities can be wiped out is breathtaking, and beyond the risk-aversion threshold of most investors. Nevertheless, the prospect of the quick strike is especially attractive to inexperienced investors who end up betting against experienced pros with better information and much deeper pockets. Fortunately, most financial advisors steer their clients away from commodities unless they can prove their ability to withstand serious losses before the investment becomes profitable.
2) Common Stocks
A modest amount invested in a stock and left untouched for a decade can perhaps keep pace with inflation, but that’s about it. However, few investors hold a stock for 10 years. For those who chase higher returns, average investors generally reposition their common stock investments over the shorter term with most only generating average returns. If you don’t have enough experience or information to make intelligent choices on how an individual stock will perform, it’s best not to take chances in the stock market.
It’s an appealing notion: buying low-priced gems that appreciate . The reality for anyone but the very wealthy with priceless heirlooms is usually the opposite. Unless you belong to a secret society of expert international gem collectors, you’ll probably end up buying low and selling even lower. Unlike gold, diamonds have little inherent value. Many people learn this the hard way when they’re unable to resell jewelry for more than a fraction of its original price.
It’s possible to make money from collectibles, but usually only after many years of collecting. Otherwise, investing in collectibles is the very definition of a niche market. For the full-time professional, it’s limited and offers marginal rewards. Keep in mind that these investors are in the collectibles market for the very long haul — and many do it as much for a labor of love as for the profits.
Selling structured settlement payments in order to invest is a great idea as long as you pick your investments carefully. When your annuity is controlled by another party you have no say over how the money is invested, nor do you benefit from any gains to the fund’s value. Exchanging a structured settlement for a lump sum is a great way to help ensure that your money is being used in a way that most benefits you. With proper research, careful planning, and the assistance of a trained professional, investing your structured settlement can yield excellent returns.
Get a free quote from Woodbridge Structured Funding or call today (1-866-865-7044) to find out how to sell annuity payments. It’s fast, easy, and they will beat any legitimate offer!
Woodbridge Structured Funding, LLC: Sell structured settlement payments for cash – with ease.