Investment or Saving Choices
Your investment choices fall into three broad categories: stocks, bonds and cash.
Whether you are a novice or an experienced investor, doing your homework is important. There are several questions to consider before setting your personal investment goals and objectives:
What are my primary investment priorities?
Am I interested in long-term growth, short term-gains, or current income?
Do I plan to use investments for tax savings or as a primary source of income?
How much risk am I willing to take? How much of my investment can I afford to lose?
SAFETY (Low Risk):
INCOME (Low to Moderate Risk):
GROWTH (Moderate to High Risk):
SPECULATION (High Risk):
If you have a good, steady income, or if you are young and willing to take more investment risks for larger gains, then it may be appropriate to include “growth", "aggressive growth" or even limited “speculative” investments in your portfolio.
If you are living on a fixed or retirement income, then “safety” investments that pay regular dividends and interest may be your priority.
A third alternative, recommended by many experts, is a diversified investment portfolio that includes a combination of low and moderate to high risk investments.
Be realistic in setting your investment goals, because no investment is entirely without risk.
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