It's Investing's Basic Rule : Buy low, sell high. I started investing long time ago, when I finally saved some money. I am not into buying stuff, and so i have been contributing to a lot of investment vehicles : 401k, IRA, 529, HSA, and lately, the risky Brokerage Account. Over the years, I promised to educate myself more about them, so from starting as a novice, I'm slowly trying to understand the market. I started contributing to a 401 k at an early age. And due to my being naive, I just split my elections equally. I found out that contributing early is the most important step, bec of the power of compounded interest. Then learned about investing strategies through phases in life. We should invest in the more aggressive stocks while we're young, because we have time to recover losses, but have more chances on huge gains. And so most of my investments are stocks, individual or mutual funds. Another investment rule is not to put all your eggs in one basket. And so I diversify as well. I am not an expert and I don't think anyone is, I do admire Warren Buffet though, but even him had to endure several losses before he became really successful. So far, I've had as much as 40% gains, and where will I ever have that from Savings/Checking/CD's? I lost some during the recession, only on paper, and as an investor, emotions should not be your driver. I gained all but the 529's back. But still I am ahead of the curve. So while I can't do business, since it's too complicated, high startups, and stressful, I can still invest at a click of my mouse. Who doesn't want that luxury?
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