Hi...Here's another interesting tip. Don't know if you ever thought about this question, maybe its something for you to consider. Read on.....
There are several different types of investments, and there are many factors in determining where you should invest your funds.
Of course, determining where you will invest begins with researching the various available types of investments, determining your risk tolerance, and determining your investment style-along with your financial goals.
If you were going to purchase a new car, you would do quite a bit of research before making a final decision and a purchase. You would never consider purchasing a car that you had not fully looked over and taken for a test drive. Investing works much the same way.
You will of course learn as much about the investment possible, and you would want to see how past investor have done as well. It's common sense!
Learning about the stock market and investments takes a lot of time...but it is time well spent. There are numerous books and websites on the topic, you can even take college level course on the topic-which is what stock brokers do. With access to the Internet, you can actually play the stock market-with fake money-to get a feel for how it works.
You can make pretend investments, and see how they do. Do a search with any search engine (Google or Yahoo)for "stock market games" or "stock market simulations". This a great way to start learning about investing in the stock market.
Other types of investments-outside of the stock market-do not have simulators. You must learn about those types of investments the hard way-reading.
As a potential investor, you should read anything you can get your hand on about investing...but start with the beginning investment books and website first. Otherwise, you will quickly find that you are lost.
Finally speak with a financial planner. Tell them your goals and ask them for their suggestions-this what they do! A good financial planner can easily help you determine where to invest your funds, and help you set up a plan to reach all of your financial goals. Many will even teach you about investing along the way-make sure you pay attention to what they are telling you!
Stay tune for more.....Happy investing.
PS: Leave me a comment let me know what you think
Sunday, February 11, 2007
Friday, February 9, 2007
How to Determine Your Risk Tolerance!
Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then they should work with you to find investments that do not exceed your risk tolerance.
Determining one's risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.
For example, if you plan to retire in ten years, and you've saved no money towards that end, you need to have a high risk tolerance-because you will need to do some aggressive-risky-investing in order to reach your financial goal.
On the other hand, if you are in your twenties and you want to start investing for yur retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.
Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance. For example, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?
Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out....if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!
so, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly. Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It's all tied together.
Other links of interest:
Market your business using video blogging/email. Click here!
Determining one's risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.
For example, if you plan to retire in ten years, and you've saved no money towards that end, you need to have a high risk tolerance-because you will need to do some aggressive-risky-investing in order to reach your financial goal.
On the other hand, if you are in your twenties and you want to start investing for yur retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.
Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance. For example, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?
Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out....if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!
so, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly. Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It's all tied together.
Other links of interest:
Market your business using video blogging/email. Click here!
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