Investments: Where To Invest And You're Risk Tolerance
View PDF | Print View
by: MaryMaseko
Total views: 31
Word Count: 379
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.
You can make pretend investments, and see how they do. Do a search with any search engine for 'Stock Market Games' or 'Stock Market Simulations.' This is a great way to start learning about investing in the stock market.
You should speak with a financial planner. Tell them your goals, and ask them for their suggestions - this is 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!
Your risk tolerance
If you plan to retire in ten years, and you've not saved a single penny 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.
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.
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!
Getting started
Start with an interest bearing savings account. You may already have one. If you don't, you should. A savings account can be opened at the same bank that you do your checking at - or at any other bank. A savings account should pay 2 - 4% on the money that you have in the account.
You can select the duration of your investment, and interest is paid regularly until the CD reaches maturity. CD's can be purchased at your bank, and your bank will insure them against loss. When the CD reaches maturity, you receive your original investment, plus the interest that the CD has earned.
About the Author
Interested? lets get more Unique Finance Articles from this link: Unique Articles Information Guide.
Rating: Not yet rated