Asset Junkie ! dot Com

Hedge funds are not some mystical creature that only the rich can see. Investopedia has a definition of Hedge Fund for those of you wondering.

“For the most part, hedge funds (unlike mutual funds) are unregulated because they cater to sophisticated investors. In the U.S., laws require that the majority of investors in the fund be accredited. They are similar to mutual funds in that investments are pooled and professionally managed, but differ in that the fund has far more flexibility in its investment strategies.” (http://www.investopedia.com/terms/h/hedgefund.asp)

The truth is, any intelligent investor has the opportunity to create their own hedges against loss and market risk. Another word people do not seem to understand is “investor”. An investor is not always someone who owns stocks and bonds. You can go to college as an investment in your future, you can purchase a classic car and hold it as an investment, even loan friends money with a predetermined amount in addition to the amount loaned (thats how bonds pay) and you are an INVESTOR.

Tips to hedge your investments:

• Listen to financial advisors, but do not take their opinions as fact. They work for a paycheck not your best interest; I know this because I have worked as a financial advisor and quit because of this. They are knowledgeable in their product line but that is about all.
• Do your homework via the internet, there are tons of great sites with great advice.
• Think outside of the box with potential investments.

Here are some great investment ideas:

1. Go old school and buy stocks – remember owning stock is owning part of a company.
2. Mutual Funds – extremely lame and you have no control over the holdings.
3. Online Peer-to-peer lending – these investments earn an average of 7%!
4. Real Estate – an old house you can rent near a college, maybe few trailers you can rent.
5. Collectibles – this can be everything from baseball cards to classic cars.
6. Local businesses – become a partial owner with a local business in need of capital for expansion.
7. Franchise – some are not too expensive, considering buying one of these.