Whenever money is discussed, if the conversation persist, the topic of investing will undoubtedly come up. People love to talk about and listen to investing strategies and advice.  I think the appeal of investing in certain vehicles, like the stock market, has to do with the potential to make a lot of money very quickly with little effort.  Who wouldn’t get excited about that!!!  Especially when you consider popular investment vehicles, such as stocks and real estate, have been around for hundreds of years and have worked out well for so many.

But in this day and time, there is always some new product or new philosophy to investing that “guarantees” success. Whether you are a fan of the tried and true methods of investing or chose to venture into some less conventional, new-age product, there are a few things that you need to be aware of.  Although, this list is far from exhaustive, here are a few investing tips:

1. Never invest in anything you don’t understand. Just because everyone else is doing it (or talking about it), doesn’t mean you have to follow in their footsteps. This is a rule the Oracle of Omaha (Warren Buffet), himself, follows. Through the last 30 years or so, technology companies have produced more millionaires and billionaires far quicker than any other sector of business in history. But not for Mr. Buffet. Why? He doesn’t invest in technology companies because, by his own account, he doesn’t understand technology. So how did one of the richest men in the world become a billionaire outside of the popular technologies that made so many other billionaires? By investing in things he was comfortable with such as real estate and service oriented businesses. In the end, you have to know yourself and understand what you don’t know.
2. There is no guarantee when it comes to investing. It doesn’t matter if you are Bill Gates, Warren Buffet, or just the average Joe, there is no such as a “sure thing”. Anyone that tells you otherwise, is trying to sell you something. There is always associated risk; but risk can be minimized through careful planning and wise decision making. Take the time to learn about an investment before you jump in. It’s the wise thing to do.
3. Never invest money you are not willing to lose. If you are hoping an investment will “hit it big” and solve your money problems, your hopes are misplaced and you probably don’t need to be investing right now. Take care of your obligations (debt) first. Eliminate the debt so you can use those dollars elsewhere.
4. There is no such thing as a free lunch. Everything has a cost. If a product or company is offering you a service, it cost them something. And if you are doing business with them, that cost will probably be passed on to you somehow. This may come in the form of fees even something as drastic as lower gain interest rates. It’s up to ask the question, “What’s the catch?”

Investing is exciting; but remember everything we Christians do is to be done decently and in order (1 Cor. 14:40). Investing is no different.  Investing works, but you have to be wise and willing to make it work.  So when you are ready (i.e. out of debt), make wise decisions and watch God bless you for being a good steward.

It sounds great in theory: Pre-plan and prepay your funeral expenses so your children and heirs won’t have to make expensive and difficult decisions while grieving. But not all pre-paid funeral contracts deliver on their promises as funeral homes go out of business, change hands, or raid the money consumers thought was safely invested in trust funds.

Comparison shop. The average cost of a funeral is $6,500, according to the National Funeral Directors Association—and that doesn’t include cemetery costs and extras like flowers, obituary notices, and limousines that can quickly boost the price to well over $10,000. But a full 79 percent of seniors report they have not done any comparison shopping for burial or funerals, an AARP study found.   Consumers received some protection from unscrupulous funeral providers with the creation of the Funeral Rule in 1984. This rule, administered by the Federal Trade Commission (FTC), requires funeral providers to give consumers accurate, itemized price information and other specific disclosures about funeral goods and services. The Funeral Rule requires funeral directors to provide price information over the phone to any caller who asks for it.

Unfortunately, the Funeral Rule does not apply to many of the features of pre-need contracts, which are governed solely by state law, and protections vary widely from state to state.

Following are some questions that the FTC recommends asking before signing up for a pre-need funeral arrangement. The questions are from the FTC’s booklet “Shopping for Funeral Services.”  See also the FTC’s Shopping for Funeral Services page.

• What happens to the money you’ve prepaid? States have different requirements for handling funds paid for prearranged funeral services.
• What happens to the interest income on money that is prepaid and put into a trust account?
• Are you protected if the firm you dealt with goes out of business?
• Can you cancel the contract and get a full refund if you change your mind?
• What happens if you move to a different area or die while away from home? Some prepaid funeral plans can be transferred, but often at an added cost.

These pitfalls can be avoided, of course, by making decisions about your arrangements in advance, but not paying for them in advance. Be sure to tell your family about the plans you’ve made; let them know where the documents are filed. If your family isn’t aware that you’ve made plans, your wishes may not be carried out. It may also be best for you to consult an attorney on the best way to ensure that your wishes are followed.