Six investment products you should avoid

Today there are a tremendous amount of investment options and products available that have no place being in the average person’s portfolio. Slick marketing strategies lure unsuspecting people toward these highly engineered products and not even the person selling it understands completely. Investing is confusing enough and for most investors it’s best to keep things simple.  The key similarity plaguing these investment product is high commission’s plague these investment products.

This is a relationship business and building strong relationship means being a good fiduciary putting clients first and not commissions. No investor should have to learn the hard way. Unfortunately we hear stories from clients who learned the hard way.

Any investment product Era Capital Management uses lives by three simple rules:

  • Daily Liquidity
  • Transparency
  • Low Cost

An investment that breaks just one of these rules puts it on the short list of the products or investments to avoid. Since we like to keep things simple and easy to understand you will not see us offer the following options.

  • Mutual funds with sales loads, specifically A share or C share fund classes.
  • Variable Annuities
  • Non-traded Real Estate Investment Trusts (REITs)
  • Futures or stock option derivatives
  • Private placements or private equity
  • Whole Life or Universal Life policies (Avoid investing or saving using insurance products)

If you find yourself unfamiliar with any of these products or investments please beware by doing your research or give us a call. We can explain the many reasons why they are not appropriate for a majority of investors.

Jacob

By |2019-01-10T15:27:28+00:00January 10th, 2019|

Get a free portfolio review

See what makes us different.
Request an Appointment
Or call us at 509-559-6229
close-link