investing money

Out of context: Reply #27

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  • monNom0

    @mekk

    Building a fortune is all a matter of taking greater risks to earn greater reward. Most people who make a fortune have lost (or will), a fortune several times over, as they take big risks that sometimes pay off, and sometimes don't. Of course you rarely hear about those that don't bounce back - they disappear. The very wealthy that you hear about are a very fortunate bunch. Following in their footsteps is not necessarily a recipe for success. As a rule, they do tend to work hard, have focus and they've generally started a company that has become successful.

    If you may need that money this year, leave it in the bank. If you don't need it til next year, buy a CD with a better rate. If it's for retirement, open a brokerage account and buy stocks and bonds in proven companies, or indexes of markets or sectors (which are safer than individual stocks). Diversify your investments and know that there will be ups and downs in the markets, but as long as the economy is expanding, your share of the market will expand as well.

    If you really want to take some risk, use that money to start a business. Most fail within 2 years (80%). Even more within 5 (95%). But if you succeed and you have the right kind of business, your potential is nearly unlimited. Look at Thomas Edison, Richard Branson, or Elon Musk.

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    • Isn't the market set for a correction soon?pinkfloyd
    • It is at all times. nobody can predict the future. The idea is to buy a little bit over a long period to smooth out your costs. Dollar-cost-averagin...monNom
    • A big bet, for instance would be to sell short the broad market with the thought that it will go down. If you're wrong, you lose everything. If you're right.$$$monNom
    • a general rule i picked up while glossing over a Tony Robbins book was to set aside and invest at least 10% of your yearly income.
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    • The best CD rates currently is 1.67%, I don't think worth it's investment. Seems like yesterday, an online savings offered 2%
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