Make Your Money Work As Hard As You Do

by Stacy Francis, CFP®, CDFA

I read in the paper today that the average American now works 46 hours per week. For people who hold managerial positions, are self-employed, or work on commission, the number can be significantly higher. When you spend that much time and effort making money, of course the last thing you want is to see it your hard-earned dollars just sitting in your account, losing value as inflation eats away at them. But how do you go for the sweet returns without risking to lose it all?

Here are just some ideas.

1. Don’t buy overpriced securities. I am not saying all cheap stocks and funds are bargains, but don’t buy into something that has climbed double or triple digits over the past year just because everyone else does. Look at the fundamentals and compare with the price – or have someone do it for you.

2. Do you believe hybrid cars are the future, while Fords are so over? Invest accordingly. Don’t buy companies you believe are “over the hill”, but look instead to the industries you (or your advisor) expect will do well in the future. Then, find the best companies within those industries.

3. Consider buying into perpetual income, meaning situations where you can make money from an initial investment for a long time – best-case scenario forever. Some industries where this has been known to happen are forestry, pipelines, ports, hydropower, and geothermal energy.

No matter the market conditions, if you are a creative investor (or working with a creative advisor), there will always be opportunities to make good money.

Comment

Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.