If you're unemployed, how can you preserve your life savings?

Question

Is it smart to put your money in managed funds even if you don't have much knowledge about them?

Answer 1

A good life tip:
Do a background check before you give your money to anybody else.

Since you have lots of free time, the best thing to do is educate yourself in personal finance, instead of relying on other people's advice. There is lots of free material in the library, bookstores, and on the internet (my favorite). It's not very difficult. In the beginning it may seem like a lot to absorb, but little by little you will get the hang of it if you don't give up.

If an advisor recommends a managed fund, you should still do your research on that fund. There may be a lot of fees/costs, and poor performance. They often have their own agenda. Which brings me to another principle: Always try to go DIY, which means self-education. Advice can be heard and referenced, but you have to do your own analysis and make the final call.

The last thing: really try to get a job or employ yourself, even if it's only part-time. Even if you cut your costs to a bare minimum, it will be very difficult not to preserve your savings - even if your investment grows. You need income, if only to cover your expenses. Plus, jobs are great for social networking, and often lead to better opportunities down the road.

If you may need your money soon, funds are worse because of costs. If you are a novice, safer to just stick it in an online bank account at 5%. But long-term, you can consider no-load funds, or low load funds with exceptional performance, or ETFs.

The best to you -

Answer 2

By getting a job.