How to Pick an Investment Newsletter

Picking the right investment newsletter can be tricky. There's lots of hype out there. But a good one can point to opportunities in the market that you can take advantage of. They can also be more creative than your stockbroker or mutual fund manager.

Instructions

1. Work through your financial goals before even looking at an investment newsletter. Decide how long you've got to invest, the kind of return you need and the level of risk you're willing to take.

2. Decide if you're comfortable handling your own investments. You can't blame your stockbroker for messing up your portfolio. Investment newsletters are for the entrepreneurial investor.

3. Be prepared to lose money. It takes time to identify the investment newsletter that's right for you.

4. Subscribe to "The Hulbert Financial Digest." This is a well-respected publication that tracks the performance of investment newsletter stocks. Ratings are based on model portfolios, which give an objective view of performance.

5. Make sure you're comfortable with the investment vehicles and market sectors the newsletter covers. Mark ones that are consistent with your risk tolerance and desired rate of return.

6. Explore newsletters with nontraditional techniques to expand your range of investments. The beauty of the investment newsletter world is its diversity of approaches. You can monitor how these turned out without spending a dime.

Tips & Warnings

• Remember that a newsletter is an investment guide, not a financial guru.

• Don't rely exclusively on ratings. Consider what's right for your investment goals and risk level.

• Don't forget there are also mutual fund newsletters if you don't like to pick stocks.

Resources

• Find articles about investment newsletters on Market Watch.