iBankCoin
Joined Dec 27, 2015
231 Blog Posts

A Few Investment Safety Tips

Like it or not, no stock investment is risk-free. However, there are some things that you can do to ensure that they are secured. While no one else can make your stock decisions for you, it is never wise to make any decisions hastily and without some educated advice. Here are a few wise tips to make sure you know at least a little.

 

It’s Best to Start with an Emergency Fund

 

Whether or not you currently have that amount in your account, it’s always best to strive for at least six months worth of funds. If you don’t, just remember that it’s better to have at least one emergency account instead of none at all. If you can, try to put at least a third of your income into your savings every month.

 

Especially with the increasing inflation these days, it is not unselfish to pay yourself first. In doing so, you are also able to help both yourself and others.

 

Consider Your Risk Comfort Zone

 

As stated above, no investment is without risk. Investing in stocks, bonds, mutual funds, etc. is a bit like gambling in a casino. Only there’s absolutely no guarantee that you’re going to get returns or lose. As a result, you should never invest more than you’re comfortable with losing. If you have some short-term goals, this is where cash investments may be appropriate. Also remember that most securities are not federally insured.

 

Occasionally Rebalance Your Portfolio

 

In the case of your stock portfolio, re-balancing means bringing your asset allocation to where it was originally. In this way, you can ensure that your assets don’t become imbalanced. When they do, one asset is overemphasized and that can be an unfair drain to the others.

 

Remember the Scammers Often Look Like the Real Thing Now

 

Investment scammers trek popular news headlines to educate themselves on how to look more like the real thing. Whenever you’re not sure, the best thing you can do is question the source. If they get mad or their answers are vague, chances are, they are not genuine. It is also wise to keep track of common investment frauds, such as pyramid schemes and promises of high returns for doing nothing but handing over your money.

 

How to Find a Business’s Merchant Code

 

Unfortunately, a lot of bank tellers don’t know what an MCC code is. MCC stands for merchant category code. It is the four-digit number that businesses accepting cards are assigned by the credit networks. They are used to track your purchases on your statement. Sometimes they’re also used to prevent over-priced purchases such as at hotels.

 

Fortunately, you don’t need to ask a teller anymore. You can easily find a business’s MCC through the IRS list.

 

Conclusion

 

Hopefully the information above gives you a little bit of an idea of how you can maintain safety as an advisor. For more information, you can Google the SEC’s latest on investing. Once you start investing, it is very important to stay updated on the latest in safety tips.

 

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