Roaming Returns

Learn how to generate a passive income through investing, so you don't have to wait until retirement to live your passions. We used to think you had to either save for 30+ years or choose to live now and make up for it later. Well, it turns out that you can have it all with the right strategy.

We tired to do things the conventional way but just couldn't stifle our wanderlust. After giving in and making a lot of financial mistakes, we stumbled onto an amazing way to invest for cash flow. It's now our goal to share all of the ins and outs of our investing strategy along with other financial considerations that may go into creating your ideal lifestyle. New episodes drop every Tuesday.

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Roaming Returns

032 - Being Unaware Of Your Investor Profile Leads To Costly Mistakes

February 03, 2024 • Tim & Carmela • Episode 32

Most people don't operate with their personal investment style in mind, and when you invest in a way that's out of alignment with yourself, you have a higher chance of making costly mistakes.

Those losses deplete your funds with limits your ability to grow your money. And failures also trash your confidence and hope for retirement. So do yourself a favor and put some extra effort in at the beginning so you get off on the right foot by avoiding unnecessary problems.

Many brokerages have resources to help you clarify your investing style. Here are links to 3 companies that provide a questionnaire to get you started. We walked through Schwab's in this episode.

If you want to do a deeper personal assessment, it might be more helpful to ask yourself the following questions.

What are your investment goals?

Preserve the money you invest at the start
To grow your money over time
Do you want your investments to provide regular income

What is your time horizon?

Do you need your money soon to buy a house, pay for college, etc
Do you need your money to maintain your standard of living in retirement years much further down the road
Or are you somewhere in the middle

Immerse yourself in the differences between the investor profiles.

Conservatives

Prioritize security more than growth
Have little to no risk tolerance
Focus on shorter term investments ranging from 0-5 years
Portfolio consists of 80-100% in fixed income investments

Moderates

Fall between conservative and aggressive
Are willing to give up some liquidity & security to make higher returns
Are comfortable with medium range investments from 5-10 years
Portfolio consists of 60-65% in fixed income with the rest in dividend or growth stocks

Aggressives

Prioritize profitability above all else
Have the greatest tolerance for risk/losses because they know higher profits come in long run
Focus on long term investments
Are savvy investors who have more money so they can give up immediate liquidity
Are all about returns

Drop your comments or questions for this episode on one of our posts.

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**DISCLAIMER**
Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here.

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