Skip to main content

What Is Your Investment Style?






Knowing what your risk tolerance and investment style are will help you choose investments more wisely. While there are many different types of investments that one can make, there are really only three specific investment styles – and those three styles tie in with your risk tolerance. The three investment styles are conservative, moderate, and aggressive.





Naturally, if you find that you have a low tolerance for risk, your investment style will most likely be conservative or moderate at best. If you have a high tolerance for risk, you will most likely be a moderate or aggressive investor. At the same time, your financial goals will also determine what style of investing you use.





If you are saving for retirement in your early twenties, you should use a conservative or moderate style of investing – but if you are trying to get together the funds to buy a home in the next year or two, you would want to use an aggressive style.





Conservative investors want to maintain their initial investment. In other words, if they invest $5000 they want to be sure that they will get their initial $5000 back. This type of investor usually invests in common stocks and bonds and short term money market accounts.





An interest earning savings account is very common for conservative investors.



A moderate investor usually invests much like a conservative investor, but will use a portion of their investment funds for higher risk investments. Many moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.





An aggressive investor is willing to take risks that other investors won’t take. They invest higher amounts of money in riskier ventures in the hopes of achieving larger returns – either over time or in a short amount of time. Aggressive investors often have all or most of their investment funds tied up in the stock market.





Again, determining what style of investing you will use will be determined by your financial goals and your risk tolerance. No matter what type of investing you do, however, you should carefully research that investment. Never invest without having all of the facts!


Labels:

Comments

Post a Comment

Popular posts from this blog

Best Web Site Optimization Forums

One of the things that I like best about the Internet is how easy it is to exchange information with other people. One of the most informative and interactive ways to do so is by becoming involved in various forums. In terms of search engine optimization, there are countless forums out there from which any person can glean tons of useful information. At the same time, you can also share your own experiences and tips. But if you are new to these things, which forum do you go to? About.com came up with a list of the best forums < http://websearch.about.com/od/seoblogsmessageboards/tp/seoforum.htm > out there which focus on web site optimization. Let's pay some of them a visit? /*Web Site Optimization Forum #1: High Rankings < http://www.highrankings.com/forum/ >* HighRankings.com is a forum put together by Jill Whalen, one of the shining stars in the Web site optimization world. I like this forum because of the variety of people that contribute, the discussions are inform...
Post a Comment
Read more

Best Web Site Optimization Forums (Part 2)

During hard economic times < http://www.bizcrunch.net/marketing/should-we-panic-from-the-lehman-debacle/ > – like the one we are in right now – many things are cut off from people's budgets. Personal expenses are drastically cut down. Business expenses are not exempt as well. Somehow, people find ways and means by which to lessen spending in order to weather the financial storm. Peripheral spending and nonessential expenses are usually the first to go. If you are thinking of cutting off your SEO expenses because of the credit crunch, you might want to think again. Ephipany Solutions explains the situation < http://www.epiphanysolutions.co.uk/payperclick/18791136/Credit-crunch-not-a-good-reason-to-cut-SEO-spending >: Firms should not cut back on search engine optimisation (SEO) spending because of the credit crunch, it has been argued. Daniel Robinson of Vizcom Design Limited suggested that SEO strategies can play an important part in the success of a bus...
Post a Comment
Read more

Why Should I Make a Budget?

You say you know where your money goes and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny. You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years. That is how much you could have saved AND drawn interest on in just five years. That, my friend, is the very reason all of us need a budget. If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success. The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest. See what I mean… it really IS the little things and you still...
Post a Comment
Read more