Improving Investor Savvy: A Five Part Series

By: La’ Nise Harrington Spring 2017 Student Intern

Money Talks, but many people don’t question themselves about their own investments. This five-part series, FINRA’s July 2015 National Financial Capability Study, will outline five questions that every investor should ask themselves in order to increase their investment knowledge and improve their investment behavior.

What Do I Own?

Before making any investing decision every investor should make a financial roadmap. Even if you do not plan on making additional investments, if you have not made a roadmap, you should. A financial roadmap should be a regular part of your investment life because as life progresses your goals may too. Every investor should know what assets and debts that they own including, real estate, checking and savings accounts, retirement accounts, mortgages, credit card debts, all other investments including retirement. This is not an exhaustive list, so keep in mind to list all financial obligations and ownership. Your assets and debts are crucial in evaluating your comfort zone in taking on risk and can therefore help you form your investment goals. Do not forget to review your investment account statements in light of your comfort zone and constantly stay abreast of their chances for potential growth and risk.

After reviewing your account statements and formulating your financial roadmap, you may find that you might want to consider rebalancing your portfolio and/or diversifying your account. For more information, on rebalancing, diversification and other things you may want to reconsider before investing visit the SEC’s website. Questions from this five part series are from FINRA’s July 2015 National Financial Capability Study.