Investment Tips For Beginners?
I would start by defining your goals and objectives. Are you looking to build wealth, preserve capital, build savings to pay for home or pay for education, and/or retire by age X with Y in incomings? I would then understand your risk tolerance. Then I would begin researching the various financial instruments that are available that allows you to reach your goals and objectives while being tolerable to your risk appetite. Lastly, keep in mind that success investing is a very time consuming process. For my own situation, I ultimately ended up investing in mutual funds since I don't have the time. | 11.11.10 @ 15:48
You need to determine your goals before you begin investing.
1. There are no set rules, no guarantees, and no perfect way to invest.
2. Become educated on the various financial instruments. How do stocks work? What is the difference between stocks and bonds? Are dividends the same thing as interest payments? Make sure you understand how the investment works and all of the details of the transaction.
3. Diversify your investments. Spread out your risk. You should not put all your money in high risk stocks. Try some lower risks and some higher risks. Look for income generating investments. Bonds and preferred stock can offer great returns.
Welcome to thinking about your financial future. It's a long journey and hopefully your investments yield the results to allow you to achieve your financial goals.
| 11.20.10 @ 01:10