Join Jane Barratt for an in-depth discussion in this video Guideposts, part of Learning to Manage Personal Investments.
- Before we start talking about how to actually invest,…we need to set some guideposts.…You won't know where you're going unless…you have a map.…So let's build a map that you can use to…invest on your own or guide you through…what an adviser will do for you.…First of all, you need to know yourself.…You should not invest in products that run…counter to what you believe in or have a…higher level of risk than you can tolerate.…You need to know what you're investing in…and be 100% comfortable with it.…But first, you or your adviser needs to do…an assessment of your objectives, your life stage,…your risk tolerance, and your current…financial situation.…
The next concept on our map is risk.…With every investment, there is a danger…of losing money.…In order to be successful, every investor…has to gauge and manage risk.…Sometimes it's fairly easy.…Bonds, for example, are rated by third parties…so you can easily determine the risk of most bonds.…Stocks are more complicated.…But here's a few pointers.…First, assess value.…If you've ever purchased anything of value in your life,…
Jane is the founder of GoldBean, an online investing platform that helps first-time and experienced investors alike take their investments into their own hands. In this course, she shares her investment strategies with you. She breaks down the market into its five basic building blocks—cash and equivalents, stocks, bonds, funds, and insurance products—and the different vehicles where you can invest these building blocks. She also covers topics such as the importance of a balanced portfolio, understanding and managing your risk, identifying value in the market, and building your "money muscles" over time. Plus, learn how to calculate the rate of return of a portfolio vs. general market performance. Last, Jane outlines the options for DIY investing, when it makes sense to work with an advisor, and how to avoid costly investment fees.
- Why should you invest?
- Understanding compound interest
- Comparing stocks, bonds, and funds
- Managing risk
- Building a portfolio
- Finding where to invest money
- Working with a financial advisor