If you have a financial goal with a long time horizon, you are likely to make more money by carefully investing in asset categories with greater risk, like stocks or bonds, rather than restricting your investments to assets with less risk, like cash equivalents. The reward for taking on risk is the potential for a greater investment return. That’s true even if you purchase your investments through a bank. You could lose your principal, which is the amount you've invested. Unlike deposits at FDIC-insured banks and NCUA-insured credit unions, the money you invest in securities typically is not federally insured. If you intend to purchase securities - such as stocks, bonds, or mutual funds - it's important that you understand before you invest that you could lose some or all of your money. Evaluate your comfort zone in taking on risk.Īll investments involve some degree of risk. But if you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.Ģ. There is no guarantee that you’ll make money from your investments. The first step to successful investing is figuring out your goals and risk tolerance – either on your own or with the help of a financial professional. Before you make any decision, consider these areas of importance:īefore you make any investing decision, sit down and take an honest look at your entire financial situation - especially if you’ve never made a financial plan before. While we can’t tell you how to manage your investment portfolio during a volatile market, we are issuing this Investor Alert to give you the tools to make an informed decision. The SEC’s Office of Investor Education and Advocacy is concerned that some investors, including bargain hunters and mattress stuffers, are making rapid investment decisions without considering their long-term financial goals. Given recent market events, you may be wondering whether you should make changes to your investment portfolio. This publication explains the basics of mutual fund investing, how mutual funds work, what factors to consider before investing, and how to avoid common pitfalls. Invest Wisely: An Introduction to Mutual Funds. Ten Things to Consider Before You Make Investing Decisionsįinancial Navigating in the Current Economy: Ten Things to Consider Before You Make Investing Decisions
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