Osage shareholders receiving money awarded from the landmark Osage Trust Case Settlement will have a multitude of options for handling their money, including spending it for Christmas, paying bills or investing for the future.
Osages considering investing the settlement would be wise to research the various tools used to invest money.
“Before a shareholder does anything, we recommend they do their homework and familiarize themselves with the types of investment professionals and the products and terms of the industry,” said Vince Logan (Osage) who is President of The Nations Group Advisors, LLC – a financial services firm focused on Native America.
Another important step when it comes to investing is to develop goals or focuses for the money. As a result of the $380 million trust case settlement, Osage shareholders will receive just over $155,000 per headright.
“It comes down to asking yourself: ‘what is the goal for the money. Is it a nest egg or a retirement savings plan? Is it for sending a newborn to college?” states Alex Xethalis, Vice President at The Nations Group Advisors. “For each of these objectives, a defined risk tolerance is necessary.”
Based in New York City, The Nations Group Advisors is one of the few independent Native American-owned investment companies. One of its focuses is to promote a greater understanding of the critical investment challenges facing Indian Country today, according to its Web site.
“One’s objectives are very important and must be considered before investing,” Xethalis said. “If preparing to retire, one should consider the amount needed to live off of on a monthly basis and the number of working years left before retirement.”
Logan and Xethalis note there is a risk/return relationship in investing: “Greater risk should be rewarded with a higher expected return.” Also, in doing homework, Logan said people should be aware of online tools available for researching the investment world.
One such tool, for example, is the Financial Industry Regulatory Authority (FINRA) Web site - www.FINRA.org.
“It’s the regulator for all broker dealers doing business in the United States,” Logan said of FINRA. The Web site is a research tool for people seeking information on how to invest and explains various investment vehicles. It also allows investors to check on the backgrounds of FINRA-registered firms and brokers.
Licensure is also required of investing professionals and should be verified by those considering investments, Logan said.
Another investment research tool is the Web site www.investopedia.com, which calls itself “the Web’s largest investor resource.” The site contains dictionary and acronym and “buzzword” search features for any word or term used in the investment world. The Web site also features news articles regarding investing. Most recent articles available for viewing are: “5 Tips to Avoid Investment Fraud,” “3 Top Retirement Savings Tips for 55- to 64-year-olds,” and “The Executor’s Checklist: 7 Things To Do Before They Die.”
The U.S. Securities and Exchange Commission, responsible for oversight of the investment world, has a Web site resource, www.investor.gov, which provides information for prospective investors. “Their Web site provides excellent information about the markets, stocks and bonds, and investing basics like risk tolerance,” Logan said.
Investor.gov contains resources such as guiding principles to assess one’s risk tolerance; calculators to help make investment decisions; publications on investing; and online quizzes.
In the end, after doing homework on investing, investors should visit an investment professional, such as a registered investment advisor.
For more information on The Nations Group Advisors, please forward inquiries to firstname.lastname@example.org.