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The following is a guest post. Enjoy!
After Learning to Save, One Must Learn to Invest and Where
How about you all? What types of financial instruments do you use as investments? Do you find that you generally have a set level of tolerance for risk that determines what vehicles you use?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- First, as mentioned above, it is imperative to follow the account hierarchy of needs to determine where you need to be committing your money. For example, if you don’t have health insurance, you have no business spending money on stock investing.
- For the most part, I agree with the list of investments above, going from low risk to high risk profiles.
- @ Real Estate – One way to minimize the risk of real estate investing while still maintaining diversified exposure to this economy sector is through the use of Real Estate Investment Trusts (REITs – either in the form of an index mutual fund or ETF).
- @ Stock Investing – Many unbiased, academic studies have proven that passive investing strategies through the use of index mutual funds or ETFs beats 70-80% of professional “active” money managers. I would encourage you all to learn more about this form of investing!
***Photo courtesy of http://sharkinvestor.com/pics/timeless-investing.jpg