How to Invest Money Wisely
Usually on PeterFoti.com I enjoy talking about ways to make money in regards to the internet, but I am going to shy away from that in this particular post and discuss how to invest money wisely. This is something that is talked about daily, and if you have any sort of financial portfolio (stocks, bonds, mutual funds etc.) you know the importance of putting money in a safe place for the long haul. For me personally my stock portfolio is limited at the moment, I was buying and selling shares of Ford last year, but have since decided to sell out and put all of my chickens in one basket so to speak and buy up BRK-B shares which went from nearly $4,000 a share, to $70 a share about two weeks ago, after a 50-1 stock split.
In any event, we are not going to discuss my personal portfolio, rather we are going to try and dissect what is needed to invest your money wisely.
First off you are going to want to assess your risk tolerance. If you are younger and wish to invest im some more lucrative and volatile thats an option. Be aware that you will most likely loose your money, but if you are young you have years and years to recover. If you are a middle aged person I would think you are going to want to get into larger cap stocks, with some room for growth while still having the stability of a larger company. And finally if you are 50 or older I would recommend only investing in mega cap companies that pay dividends. If you buy something at 50 and are still working, I would tell you to reinvest all dividends, and the day you stop working, start collecting on the dividends. Its nice to get a check every three months or so, from a company that you know and trust.
What to avoid
This part is simple. Avoid ponze schemes, penny stocks, and Bernie Madoff (some comic relief), but its true. Gordon Gecko may have said it best when he said “Greed is Good” and their are people out there who live that to the fullest, and will get their money any way possible. So steer clear (if you can) of shady people looking to rip you off. The penny stock mantra has always been the same, unbelievable returns for little investment, but as im sure your mother always said “If it sounds to good to be true it probably is”
In all the essence of how to invest money wisely, is alot like internet marketing. You cant read every investing book, post on every investing forum, or seek out every last bit of investing advice. Listen to everyone, Follow no one, and go out especially if your younger and play around a bit, find out for yourself what works and what doesnet. If you do it right, you can look forward to a nice retirement someday.
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