It’s the dawning of a new year and you finally have some money to invest. Perhaps you just got a raise. Or, maybe an end-of-year bonus is burning a hole in your pocket. Either way, you need to be smart about investing if you want those extra dollars to count. Shutterstock The problem is, you have no clue where to invest your cash. While you’re aware of the myriad investing options available, the sheer number of possibilities is overwhelming. In the investing world, this is called “paralysis by analysis.” You spend so much time analyzing your options that you wind up putting it off and never investing at all. And eventually, the extra cash you set aside gets consumed by bills or unexpected expenses. In other words, life happens. 4 Investments You Should Absolutely Make in 2018 If you want to make sure your extra cash doesn’t disappear, you need to invest it right away. A certain amount of analysis is fine if it helps you find the right investment options for your
Because investing is not a sure thing in most cases, it is much like a game – you don’t know the outcome until the game has been played and a winner has been declared. Anytime you play almost any type of game, you have a strategy. Investing isn’t any different – you need an investment strategy.
An investment strategy is basically a plan for
investing your money in various types of investments that will help you meet
your financial goals in a specific amount of time. Each type of investment
contains individual investments that you must choose from. A clothing store
sells clothes – but those clothes consist of shirts, pants, dresses, skirts,
undergarments, etc. The stock market is a type of investment, but it contains
different types of stocks, which all contain different companies that you can
invest in.
If you haven’t done your research, it can quickly
become very confusing – simply because there are so many different types of
investments and individual investments to choose from. This is where your
strategy, combined with your risk tolerance and investment style all come into
play.
If you are new to investments, work closely with a
financial planner before making any investments. They will help you develop an
investment strategy that will not only fall within the bounds of your risk
tolerance and your investment style, but will also help you achieve your
financial goals.
Never invest money without having a goal and a
strategy for reaching that goal! This is essential. Nobody hands their money
over to anyone without knowing what that money is being used for and when they
will get it back! If you don’t have a goal, a plan, or a strategy, that is
essentially what you are doing! Always start with a goal and a strategy for reaching
that goal!
ways to invest: I.S broker
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