Investment Guide
Welcome to your Investment Guide. 2008 was the year of the Financial Perfect Storm. We saw the simultaneous meltdown of the stock market, the housing market, and the credit markets. Almost every single day, the headlines were sounding doom and gloom. Investors did not know which way to turn before getting clobbered again and again. Sound investment advice did not seem so sound anymore. What was the average investor supposed to do? What was a newbie investor supposed to do? What were Wall Street's superstars doing while this financial bloodbath was going on?
Introducing Your Investment Guide.......to answer these and many other investing questions. It is important that one has at least a very basic understanding of how investing works. The kind of knowledge needed should be thought in the grade schools with continuation on a deeper level in high school. Sadly, as far as I can tell, it is totally lacking!My own investment knowledge came by default. When I bought my first business, a drug store purchased in 1982, there was a pension plan already in place. I had to become familiar with this and exactly what it was that the money was invested in. It turned out that the man in charge of investing this money was very cautious with the choice of securities because as you will soon learn, as an investor tries to reach for a greater return, he/she has to expose their portfolio to greater risk. This was a risk that my mentor did not want to take. Hence the money was invested in Zero's. This is short for zero coupon bonds which you will learn about in this guide. In the 9 Steps To Financial Freedom section, step one, we learned that we must pay ourselves first. Ideally, this would be about 10% of our gross income so if a person is earning $50,000.00 per year they would be saving about $5,000.00 per year. Now the time has come to learn exactly what to do with that $5,000.00 per year that you are saving. Before we can do that, you need to understand the two most basic principles of investing and how they are related. These two tenets form the backbone of all your saving and investing through out your life so it is very important that you get them right. If you do not fully understand them, you could wind up throwing money to the wind with disastrous results! O.K. With that being said, here they are: 1)The Risk and Reward Relationship 2) Asset Allocation. We will start our investment guide with a full explanation of these two tenets and then finish with 3) Mutual Funds and 4)Government approved programs
For more reading on this subject, you might want to take a look at the following titles: The Buffet System Intelligent Stock Trading Learn To Invest Discover How To Invest Profitably Go to Home Page from Investment Guide
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