Manage Your Investment Account

Opening and maintaining an investment account can be handled in a variety of ways. Some investors take a hands-off approach, preferring to let the broker, as the voice of experience, call the shots and handle the transactions. Other stockholders take mixed roles. Here are some of the ways that you can oversee your stock holdings or mutual fund portfolio:

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• Guide to Mutual Fund Investment
• Buying Growth Stocks / Mutual Funds

1. Keep tabs on stock market reports. Even if you decide not to get actively involved, at least you'll have a general understanding of the market conditions and your holdings, and can monitor your investment broker's actions on your behalf. Read the business section of your local newspaper or get a subscription to a financial publication like The Wall Street Journal or Money. Make an appointment to meet with your broker every three to six months to discuss your account.
2. Follow the stock indexes along with your particular holdings. That way you'll have a pretty good idea of how well your stock is performing and what you would like to do with it. For example, when it goes up, you may decide to sell for a higher profit. Or when it falls, you might want to purchase additional shares. The more you understand about the market, the more effectively you can manage your accounts or collaborate with your broker to ensure maximum growth.
3. Decide if you are a low risk, moderate risk, or high risk investor. Some brokering firms offer an investment survey that will help to evaluate your financial attitudes toward the stock market and an investment account. Knowing your risk level can also help guide you toward the kind of strategies you will want to consider making. For example, moderate to high risk stockholders may be interested in buying and selling stock options as opposed to stock shares. A low risk taker may be more interested in a simpler strategy like rolling stock, or buying when it's cheap and selling when the price goes up.
4. If you are a take-charge person, it may be difficult for you to trust your holdings to an investment broker. While you may let that person do the actual trades with your stocks, you may prefer to make the decisions and advise him or her as to your choices. But if you feel unfamiliar with the market, it may seem more comfortable to let the broker make the decisions and keep you informed through monthly, quarterly, and annual reports.
5. Give some thought as to the purpose of your investment account. For example, you may want to earn interest on your holdings to pay for a son or daughter's college education. Or you might prefer to let the interest compound and increase your holdings over time. A broker can discuss options like these with you to provide clear-cut possibilities for the best use of your money.

Managing your financial assets can be exhilarating as well as sobering. It may be worthwhile to take an investment workshop or enroll in a seminar to learn more about this dynamic opportunity for financial growth.