Investments like these that may propose to offer higher returns than what you would find with basic equities (like stocks) may also come with higher risk, higher complexity and a longer or more complex process of redemption — e.g., a property that dictates how quickly you can withdraw your money.\u00a0 Limited redemptions are often established so that the investment’s underlying managers can execute their strategies without risk of sudden withdrawals, plus other reasons.<\/p>\n

It’s key when presented with an advanced investment opportunity that you understand how that investment makes money.\u00a0 Even if you’re working with an advisor that you know and trust, your advisor is supported in making his or her recommendation to you by taking cues from you on your tolerance for risk and suitability.<\/p>\n

If you ultimately don’t understand how the investment makes money, then at minimum a key property to understand is how difficult it would be to get out of the investment — e.g. its liquidity.\u00a0 Once you at least understand the mechanics of selling your investment, you may be able to sleep at night knowing\u00a0 how you can exit the investment should it not perform as you expected.<\/p>\n

Understanding an investment won’t guarantee that you won’t lose your principal.\u00a0 But it will guarantee that you’ll be better prepared to react to the unexpected.<\/p>\n

While you work with an advisor because you trust and respect his or her advice, a good advisor still needs for you to do your homework (and a great one will work with you to help you understand his or her recommendations).\u00a0 If you’re not embarrassed to question what’s in a glass full of blue liquid, don’t feel embarrassed to ask questions about where your money is being invested.\u00a0 If you are, it may be time to seek out a new advisor.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

…unless you really know what you’re doing. For example, say that a coworker whose opinion you respect asked you to drink a glass full of blue liquid.\u00a0 No doubt you would ask your coworker […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[19,40,30],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/posts\/1445"}],"collection":[{"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/comments?post=1445"}],"version-history":[{"count":7,"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/posts\/1445\/revisions"}],"predecessor-version":[{"id":1484,"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/posts\/1445\/revisions\/1484"}],"wp:attachment":[{"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/media?parent=1445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/categories?post=1445"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.pricecapitalcorp.com\/wp-json\/wp\/v2\/tags?post=1445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}