Why do so many people never obtain the financial independence that they desire? Often it's because they just don't take that first step--getting started.
A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk.
Below are summaries of some basic principles you should understand when evaluating an investment opportunity or making an investment decision. Rest assured, this is not rocket science.
Regardless of where you choose to invest your money—cash, stocks, bonds, real estate or a combination of places—the key to saving for retirement is to make your money work for you.
Answer:When it comes to investing their money, many people are content to take a random approach.
Answer: When you invest in bonds, you are investing in the debt of a government entity or a corporation. A bond is simply evidence of a debt and represents a long-term IOU.
Go out into your yard and dig a big hole. Every month, throw $50 into it, but don't take any money out until you're ready to buy a house, send your child to college, or retire.
Asset allocation is a common strategy that you can use to construct an investment portfolio. Asset allocation isn't about picking individual securities.