Safe Investment Tips for the Cautious
Trust your cautious instinct
It’s important to remember that if an investment sounds too good to be true, it probably is. For those that are already cautious with money, don’t worry about going after huge, fast investment returns. Investments are kind of like the story of the tortoise and the hare; it is always best to invest money in sure and steady investments. Don’t worry about trying to outsmart the market.
Along the same lines, don’t gamble. Gambling exists on the premise that you can put in minimal work and get maximum profit, which doesn’t reflect real life. Make sure to do research and know the risks, and potential on each investment. This requires work, but it should give valuable insight and bolster confidence in the decision.
Lookout for high percentage expense ratios
Be wary of financial advisers. While they can help, they often charge high percentage fees. Also, look out for funds with high percentage expense ratios. Usually companies that boast these ratios will invest money in the market, hoping for big payoffs later. But these high expense ratios can eat away at your investment over time. A good expense ratio should be around .2%.
What to invest in
A good option for the money cautious is to grow money with a Vanguard 500 Index fund. This kind of fund allows buyers to purchase small pieces of ownership in the top 500 businesses in the U.S. Vanguard. It has the lowest fees on the market. These investments provide more money over time, not all at once. Or, choosing to invest in smaller quantities, for the investment nervous works fine as well.
See the big picture
When investing, have realistic expectations. An investment will need a 10-20 year commitment to see positive return. The nature of the market is that it goes up and down on a regular basis, but in the long run, it will rise. Looking at the minute details of day-to-day may scare you, so trust that in time the investments will pay off.
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By Learn Accounting Free | 2016-08-26 21:23:14 | Uncategorized | 0 Comments
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