Investing can be tricky business. Even for the most well-informed and experienced investors, uncertainties and unpredictable business climates create lots of question marks. In an effort to stem some of the uncertainty, investors are continually searching for the “secret” – the investment strategy used by those who have experienced profound success. If you’ve been searching for that secret, you may be surprised to learn that it can be summed up in just one word: consistency.
Tag: investing 101
Most people agree that 2011 was a tough year for investors. Wild market swings, unpredictable economies and a gridlocked Congress all played havoc with investors’ nerves. In uncertain times like these, the temptation is to move your money from one investment to another, trying to limit your losses. That strategy may make an investor feel better, more in control, but won’t necessarily improve returns. Find out what the best strategy is for 2012 and how to make the most of your investments.
If you happen to be sitting on some extra cash, you may be wondering how to put it to its best use. The answer depends on your personal financial situation. Learn how to assess your situation and determine when to save your cash, when to invest it and when to use it to pay down or pay off debt.
Everything changes as you get older. And while few of us look forward to the downsides of aging – the joys of belly fat, wrinkles, thinning hair, and so on – one of the big upsides of getting older is gaining the wisdom and experience you just can’t acquire any other way. Your investment portfolio gets older, too. But unlike our waistlines, we actually want our portfolio to grow over time. And taking an age-based strategy with your portfolio is a simple approach to managing your investments effectively over the long-term.
Do a little reading up on the relationship between investment risk and return and you’re likely to come across complex math models and detailed discussions about betas, coefficient of variation, negative correlation, standard deviation, capital asset pricing models, and on an on. Sound like a fun time to you? Me, neither. I learned all those models and terms in graduate business school (I had to, they made me), and while they’re definitely worth knowing, the basic concepts of risk and return are pretty simple.
Welcome to Quizzle’s Top Money Tips Roundup, where you’ll find the top five most interesting personal finance articles from around the Web this week. Today’s edition covers why it’s great to be debt-free, timeless money tips, ways to stretch your dollar when you’re unemployed, money games for kids and investing snafus.
If you’re an average investor, you probably don’t have the time or expertise to navigate the confusing and ever-evolving world of financial markets. What you need are affordable, solid investments that don’t require tons of research and huge ongoing time commitments – like index funds. Find out what index funds are, how they work and why they may be a great investment option for you.