Keys to Investing Your Money - dummies

By Consumer Dummies

Part of Managing Your Money All-In-One For Dummies Cheat Sheet

Investing your money can help you achieve your short- and long-term financial goals. The key is investing the right way to build wealth and financial independence. Following these simple investing rules can minimize your personal financial risk while maximizing your potential to achieve long-term goals:

  • Come up with a plan. Know what you’re doing and why: Don’t invest blindly, hoping that it’ll all come out well in the end.

  • Establish realistic expectations, and then pick funds that have the potential to meet your goals. Learn from others, but build the portfolio that’s right for you.

  • Remember that higher risk doesn’t guarantee a higher return.

  • Avoid funds that have dramatic up-and-down swings, particularly if you’re nearing retirement.

  • Invest in a mix of asset types, because no one knows which investments will be hot at any point in time.

  • Find a professional to help you choose the best investments.