Basic Investment Strategies
Everyone should have a financial plan that includes long-term investment strategies. These can range from no risk to significant risk, depending on the type of program you decide to invest in.
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With detailed analysis supported by data and anecdotes drawn from investment experiences, this practical guide emphasizes the importance of basing recommendations for investment strategy on the principles of traditional finance. |
Guide to Investment Strategy: How to Understand Markets, Risk, Rewards And BehaviorBefore sinking your hard-earned funds into an account that may not hold up during times of economic uncertainty, explore some of the available options to make the best choice for your investment dollars.
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New Investment Superstars provides you with a unique opportunity to get to know these market masters and learn the original investment strategies they have used in many markets to outperform their peers. |
The New Investment Superstars: 13 Great Investors and Their Strategies for Superior ReturnsThe safest type of investment plan is a simple bank savings account. Since the federal government insures most financial institutions of this type, you should not fear losing your deposits or the interest they earn. However, the return on this investment is quite small, especially when the economy slows.
Savings bonds are another safe but slow investment. They mature after seven years, doubling in value. These provide a great option for teaching children how to save by purchasing small bonds and watching them grow over time. Other types of bonds, such as municipal or treasury, are slow-growing and involve little risk.
The next level of investment is the certificate of deposit, or CD. These accrue interest at the prevailing market level, which usually follows the current prime rate. Insured by the FDIC, they provide a safe investment but offer a relatively small rate of return. However, there is no penalty for early withdrawals except quarterly interest, so your money remains “liquid,” or available when you need it.
Individual retirement accounts, or IRA's, are long-term savings plans that, generally speaking, become available (with interest) when a person reaches retirement age. There are penalties in terms of lost interest with early withdrawal.
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Contains a new chapter comparing index funds, ETFs, and passive asset class funds, an expanded section on portfolio care and maintenance, the addition of Swedroe's 15 Rules of Prudent Investing, and much more.In clear language, Swedroe shows how the newer index mutual funds out-earn, out-perform, and out-compound the older funds, and how to select a balance "passive" portfolio for the long hail that will repay you many times over. |
The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests TodayPurchasing stock shares of a publicly traded company is another way to invest your money to make money when the company does well. Profits are distributed to stockholders as dividends or can be compounded into the stock holding to accrue a greater amount of interest over time. Depending on the company's stability and the economic climate as well as the number of shares you hold, stock holdings can be a volatile or safe investment. Become familiar with the company so you have an idea of what to expect.
Mutual funds are an attractive and popular investment option for long-term moneymaking dividends. A mutual fund is actually a portfolio of varied stocks that is compiled by a broker who advises the client about what to buy, sell, or hold. Since mutual funds include a diversified array of stock shares and compound with interest, they can be a relatively secure investment. But there are low risk, moderate risk, and significant risk options. You can invest in American companies or acquire international portfolios comprising European, Asian, or Pacific Rim stock holdings, for example. Ask a broker for details on the best plan for your interests.
Start saving for the future by investing money in an account that will a rate of return that suits your temperament. You can begin with a savings account, progress to an IRA, and put a little aside for riskier ventures in the stock market. An important rule of thumb is never to invest what you cannot afford to lose.
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