Investing in the United States is huge money. It’s a way that people take a few thousand dollars and grow it into a sum that can help pay for their children’s college. It’s also a very large industry, and one that is constantly growing.
For example, hedge funds, a type of fund that few people even understand (for those interested, it’s basically large-scale market manipulation using an immense amount of money to prop up one company and their stock price while driving down, temporarily, the price of other, competing, stocks), control an immense amount of assets, as a collective of investing. To put this into perspective, there are, currently registered and running, something like eight thousand four-hundred or less hedge funds. They control, combined, somewhere around a trillion dollars American in assets, and that number goes up every year by twenty percent, which means that next year, they’ll control one trillion (and yes, I mean trillion, a thousand billions, a number of dollars greater than our current annual fiscal deficit here in the United States) and two hundred billion dollars worth of assets. Obviously, there’s money to be made here, which leads us into the first reason that Assurance Services, offered by CPA firms, are so important…
1. There’s a lot of money being put into these funds
People are putting a lot of money into these funds and investments. Look at those 8400 hedge funds that control a trillion dollars. Do the math. 8400 separate hedge funds (and that number may be slightly higher than reality, at the moment), which you use to divide the trillion dollars that are invested into them, and you end up with an average total of assets controlled by each individual firm of a few million dollars over a hundred million. That’s a lot of money being invested, and it’s being invested by normal people, a few hundreds or thousands or whatever they demand as a minimum investment at a time. Because of that, it makes sense that…
2. There’s a lot riding on those investments for a lot of people.
Some people invest in these firms simply to grow their money quickly, and aren’t really too concerned with losing their initial investment. Some people who invest in the various funds and investment products offered on the market today can handle losses of millions of dollars, like a Mr. Warren Buffet, for example, or anyone else who has already made money hand over fist.
Some of these investors, however, aren’t that kind of person. For some people, investing is the way that they’re going to pay for their retirement, and they need that money to be there at the end of their lives so they can retire and spend their twilight years in relative comfort. A CPA firm offering assurance services ensures that the money is going where they say it is, but, even more important, is that it’s going where they say it is in a quick manner, which leads us to
3. It’s important that the money is being invested in a timely manner
The market moves fast. This has always been the case, and in investing, it is part of the reason why the investments being made swiftly is such a big deal. You could hear a rumor one day that there’s going to be a large contract awarded to a defense contractor, and if you don’t make that investment within a few hours, you’ll miss out on the boost to the stock price that they’re going to receive, and you could even wind up having to pay more for the stock than you initially thought you were going to have to.
4. That the investment is actually what they say it is.
There is nothing more terrifying for an investor than thinking they’ve invested in one thing when really they’ve invested elsewhere. For example, a fund that claims to invest in only blue chip stocks, stocks that are well established as being stable and profitable, is one that people are likely to trust. What happens, then, when upon a review of their investing, it turns out that they’ve bought nothing but pink sheet stocks, and that most of the money they invested has since disappeared?
Lives are shattered. Because of this, it’s important that there’s certifiable honesty in the claims that they make concerning the investments that they’re making.
So, if you’re looking to invest, make sure to read what CPA firms have to say about the funds that you’ll be investing is. It could save your investment.