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George Divel Investment Tips

Tip # 3  How much risk can you tolerate?

Are you a risk taker or are you risk averse? Do you have a clear idea of what risk is or do you confuse risk with volatility?  These are important questions that you should discuss with your investment advisor.

Big investment firms and banks have skilled professionals who are employed full time as risk managers. Their job is to estimate the amount of risk in every investment to increase the odds that the investments will be profitable.

But for most individual investors, risk has to do with you gut.  The biggest investment rewards go to those investors who are willing to risk their money.  Do you have the stomach to lose your hard earned cash in exchange for the possibility of high returns? Or would you rather invest more conservatively and earn returns that are less but steadier?

It is very important to be honest about how much risk you can comfortably manage and then to invest accordingly.

Also, even if you are a risk taker, you must also consider your investment time horizon to make sure your goals are realistic. This is another conversation you need to have with your investment advisor before you start any financial planning.

January 29, 2008 Posted by | Uncategorized | Leave a comment

George Divel Investment Tips

#2  Set Realistic Goals

There is a great advantage to writing down your goals. Too many investors have vague or poorly defined goals and as  result, they can’t possibly be successful.  It isn’t enough to say: “My goal is to be rich.”  The more specific your goals, the more likely you are to reach them.  For example: First identify and write down your financial goals, whether they are saving to send your kids to college, buying a new car, saving for a down payment on a house, going on vacation, paying off credit card debt, or planning for retirement. Second,  decide whether  each financial goal  short-term (less than 1 year), medium-term (1 to 3 years) or long-term (5 years or more). Write everything down and  then start to work with your list of clear goals.

When you have all your assets and all your goals written down, you are in great position to get your finances in great shape.

January 20, 2008 Posted by | Uncategorized | Leave a comment

George Divel Investment Tips

Tip # 1: Consider ALL your assets.

Many individuals think that an investment plan means stocks and bonds only. But if you have a goal for your investments: a vacation home, retirement, educating a child, paying for a wedding or any other goal, it makes sense to begin your investment program by including all your assets including real estate, pensions, savings, even IRA accounts that you may have forgotten about.

Whether you are investing for yourself or benefiting from the help of an experienced investment advisor, it is important to begin by listing all your assets.  It’s the only way you can begin to see a clear and accurate picture of your financial health.  Especially in these times of economic turmoil in the credit markets, it is important for you and your advisor to have an accurate picture of your real estate holdings and the terms of your mortgage.

There are many factors to weigh when you are planning your financial future — and we will cover them all. But the first rule is to identify all assets and evaluate them honestly.

January 20, 2008 Posted by | Uncategorized | Leave a comment

Hello world!

Welcome to the blog of George Divel.

I am starting this blog to provide investment tips based on my experience as an investment advisor. I invite comments and questions.

January 20, 2008 Posted by | Uncategorized | 1 Comment