Invest-How to Invest?
Are you getting 8 to 20% returns?
Decide if you're a saver or investor, or both? Savers do not invest!
Risk and Risk Tolerance Questions to consider before starting
- How much risk can you handle psychologically? How do you feel about loosing money?
- How much risk can you afford financially? Can you afford to loose money?
- How much risk do you need to get the growth or income you want?
- How much risk should you take?
- Are you willing to lose your capital?
- Are you willing to have the capital value of your investment go positive and negative?
- Are you focused on capital preservation, income, or capital growth?
- Do you need access to the capital (do you need liquidity)?
- What time frames are you looking to stay invested
- Classical Portfolio Theory-should you follow asset allocation plans?
- Asset Diversification and Asset Class
- How long do you plan to be invested?
- You should never take more risk than you can afford to loose
Selecting Your Investments
There are many excellent investing websites that explain how to do this. If demand necessitates we will develop a fully formed investment section.
Our view is that if you can get the results you are looking for then invest in those vehicles that you understand. Don`t forget the risk reward ratio. The higher the risk the higher the eventual returns should be.