Determining Where You Will Invest
There are several different types of investments, and there are many
factors in determining where you should invest your funds.
Of course, determining where you will invest begins with researching
the various available types of investments, determining your risk
tolerance, and determining your investment style - along with your
If you were going to purchase a new car, you would do quite a bit of
research before making a final decision and a purchase. You would
never consider purchasing a car that you had not fully looked over and
taken for a test drive. Investing works much the same way.
You will of course learn as much about the investment as possible, and
you would want to see how past investors have done as well. It's
Learning about the stock market and investments takes a lot of time...
but it is time well spent. There are numerous books and websites on
the topic, and you can even take college level courses on the topic -
which is what stock brokers do. With access to the Internet, you can
actually play the stock market - with fake money - to get a feel for
how it works.
You can make pretend investments, and see how they do. Do a search
with any search engine for 'Stock Market Games' or 'Stock Market
Simulations.' This is a great way to start learning about investing in
the stock market.
Other types of investments - outside of the stock market - do not have
simulators. You must learn about those types of investments the hard
way - by reading.
As a potential investor, you should read anything you can get your
hands on about investing...but start with the beginning investment
books and websites first. Otherwise, you will quickly find that you are
Finally, speak with a financial planner. Tell them your goals, and ask
them for their suggestions - this is what they do! A good financial
planner can easily help you determine where to invest your funds, and
help you set up a plan to reach all of your financial goals. Many