While there are many who have made millions investing, there are also countless people who have lost it all, as well as many in between. Understanding and accepting these risks is one of the first steps of investing and developing an effective investment plan.
One of the first steps should be to determine what your goals are and how investing can help meet these goals. To this end, for a twenty year old, fresh out of college, the goal may be to have enough money to retire comfortably, so a more long-term and safer approach may be the best choice. If, on the other hand, the goal is to get a new car by next Christmas, a much more aggressive and risk approach would be needed. Determining what type of investing will best match these needs and what level of risk is acceptable is the first step to investing.
As is often the case with many parts of life, a big part of investing is time. Given enough time, it is rare for a stock to not perform considerably better than a similar savings account, but the key phrase here is “enough time.” In these cases, since the investment is intended to be long term, it is okay when there is a dip or recession, as it will eventually work itself out. In most cases, even today’s repressed and scary market will eventually climb, so it is simply a matter of waiting. Of course, with that said, if a recession happens to hit when you are ready to cash in, then you will run into problems, but generally, long term investments pay off better than short-term.
With that said, if the goals are to get a new car by next Christmas, a long term investment will not generally meet this goal. Along the same lines, a long term investment tends to tie up your money for much longer, so if you need to have a more fluid availability to your cash, such as someone who uses it to live off of, a long-term investment might not meet these needs. However, these types of investments are quite risky and can include a number of other costs, such as taxes and trading fees, which can quickly erode smaller returns.
In addition to understanding the importance that time can play while investing, it is also important to understand the distinction between owning versus lending.
When you purchase something, such as when you buy stock in a company, you are basically giving over control of your money to the company and allow they to use it as they deem fit, although most companies do provide a mechanism for allowing their stockholders some control over the business.. However, the flip side is that since you own the stock, you can sell it whenever you want, with few restrictions.
Lending investments, which include things like bonds, usually remove a lot of the control over when you can cash in on your investment. For instance, some bonds have a specific time frame that must be met before the bond can be cashed in. With that said, it is usually possible to sell most bonds, but it is generally not as easily or as straightforward as when you actually own the investment.
About the Author:
Roger, a financial writer, enjoys spending time in Raleigh and the Research Triangle Park. There are many important industries in this area, as well as several collection agencies. When these industries need to preform debt recovery, as well as other services like skip tracing, they turn to Professional Recovery, a
Durham Debt Recovery Agency
Thanks for sharing your thoughts on Maglie calcio
poco prezzo. Regards Maglie Roma
It’s difficult to find experienced people in this
particular subject, however, you seem like you know what you’re talking about!
Thanks
I truly love your blog.. Excellent colors & theme.
Did you develop this web site yourself? Please reply back as I’m hoping to
create my own blog and would love to learn where you got this
from or just what the theme is named. Thanks!
Hello there, just became alert to your blog through Google, and found that it’s
really informative. I’m going to watch out for brussels.
I will appreciate if you continue this in future.
Numerous people will be benefited from your
writing. Cheers!
We stumbled over here different page and thought
I should check things out. I like what I see so i am
just following you. Look forward to looking over your web page yet again.
I for all time emailed this web site post page to all my associates, for
the reason that if like to read it after that my contacts will too.
Hello, i feel that i noticed you visited my blog so i got here to
go back the prefer?.I’m trying to in finding issues
to improve my web site!I suppose its ok to use a few of your concepts!!
plenty of fish natalielise
Wonderful beat ! I would like to apprentice while you amend your web site, how could i subscribe for a blog site?
The account helped me a acceptable deal. I had been a little
bit acquainted of this your broadcast offered bright clear idea
I used to be able to find good information from your articles.
A fascinating discussion is worth comment. I think that you ought to
publish more about this topic, it may not be a taboo subject but generally people don’t talk about these subjects.
To the next! Many thanks!!
Good day very nice blog!! Guy .. Excellent .. Wonderful ..
I will bookmark your web site and take the feeds additionally?
I am happy to seek out numerous useful info here within the post, we’d like develop
extra techniques in this regard, thanks for
sharing. . . . . .
Fabulous, what a webpage it is! This webpage
presents helpful facts to us, keep it up.
A motivating discussion is definitely worth comment.
There’s no doubt that that you should write more about
this subject matter, it may not be a taboo subject but typically people don’t discuss these issues.
To the next! Cheers!!
Hello there, I believe your site may be having web browser compatibility issues.
When I take a look at your web site in Safari, it looks fine but when opening in Internet Explorer,
it has some overlapping issues. I just wanted to provide you with
a quick heads up! Aside from that, excellent site!
What i do not realize is actually how you’re not actually a lot more neatly-preferred
than you may be right now. You are very intelligent.
You already know therefore considerably in the case of this topic, produced
me personally imagine it from so many numerous
angles. Its like men and women are not interested unless it is something to accomplish with Woman gaga!
Your personal stuffs nice. Always care for it
up!
Fine way of telling, and good piece of writing to obtain information about my presentation subject, which i am going to present in institution of higher education.
I’m amazed, I have to admit. Rarely do I encounter a blog that’s both educative and entertaining, and let me tell you, you have hit
the nail on the head. The issue is something too few people are speaking intelligently about.
I’m very happy that I stumbled across this in my search for something
concerning this.
Hi there I am so grateful I found your site, I really found you by error, while I
was researching on Askjeeve for something else, Nonetheless I am here now and would just like to say kudos for a incredible post
and a all round entertaining blog (I also love the theme/design), I don’t have time to browse it all at the moment
but I have book-marked it and also added your RSS feeds, so
when I have time I will be back to read a lot more, Please
do keep up the great jo.
when to take viagra for best results [url=https://viagenupi.com/#]viagra pills[/url] viagra on line viagra pills free viagra without prescription https://viagenupi.com/
chloroquine for sale https://chloroquine1st.com/
hydroxychloroquine 200 mg https://hydroxychloroquine1st.com/
hydroxychloroquine 400 mg buy online https://azhydroxychloroquine.com/
Howdy just wanted to give you a quick heads up
and let you know a few of the images aren’t loading properly.
I’m not sure why but I think its a linking issue.
I’ve tried it in two different web browsers and both show the same outcome.
Wonderful website. Plenty of helpful information here.
I’m sending it to a few pals ans also sharing in delicious.
And naturally, thank you to your effort!
cephalexin 500mg capsule https://keflex.webbfenix.com/
Magnificent goods from you, man. I’ve understand your stuff previous to and you’re just extremely great.
I actually like what you have acquired here, really like what you are saying and
the way in which you say it. You make it entertaining and you still care for
to keep it wise. I can not wait to read far more from you.
This is actually a terrific website.
magnificent post, very informative. I’m wondering why the other specialists of this
sector don’t understand this. You must proceed your writing.
I am confident, you have a great readers’ base already!
I am sure this piece of writing has touched all the internet users, its really really
nice piece of writing on building up new web site.
careprost eye drops https://www.jueriy.com/
Thanks designed for sharing such a nice thinking, piece of writing is nice, thats why i have read it fully
how long does cialis last https://www.wisig.org/
It’s wonderful that you are getting ideas from this paragraph as well as from our discussion made at this
time.
Hi there to every single one, it’s in fact a fastidious for me to
pay a quick visit this web page, it contains precious Information.
Pretty! This was a really wonderful post.
Thank you for supplying this info.
Here is my website … baosimsodep.com
A person essentially lend a hand to make significantly articles I might state.
That is the first time I frequented your web page and up
to now? I amazed with the research you made to make this actual submit incredible.
Wonderful activity!
My blog :: dangkyviettel24h.com
Incredible points. Great arguments. Keep up the good work.
Also visit my homepage: tintucsim.com
non generic viagra by mail https://viatribuy.com/
Hurrah! After all I bought a blog from where I
can in fact get valuable data concerning my study and data.
Also visit my web page … MarilouUDort