How to Manage a High Yield Investment Account

Video Transcript

"This is financial adviser Patrick Munro talking about how to mange a high yield investment account. High yield is a relative term and it depends on what type of an instrument that you're looking at. If you're in a bank and you're talking about a high yield checking account that rate of return is not very high compared to say a high yielding commodities account in a factor of gold that's gone up many percentiles during the course of a year. Again it's a function of risk and if you have a yield feel fortunate in doing so because this is a year that we just finished that was a bear market and very few people had a yield, in fact many people lost money. So high yield and how to manage the account is always be diligent on what your investment holdings are, look at them on a regular basis. If you lose more than 8% of your investment, cut and run and take your losses because you don't want to sustain double digit losses going forward. This is a key management style when you have a high yield investment account. And I'm financial adviser Patrick Munro."