Join Jane Barratt for an in-depth discussion in this video Managing risk, part of Learning to Manage Personal Investments.
- Investing is risky.…There's always a chance…that your investments will lose value.…You may buy stock in a mining company hit…by lower commodity prices, or maybe a retail company…overburdened itself with debt and can't pay its obligations.…Maybe an older company gets crushed…by innovative competitors.…There's always a chance that a stock…or a bond will lose value, and some of your…hard-earned money will vanish.…But, there's also a chance your investment…will increase in value, and that's why people invest.…The risks to your investments can come…from countless sources, but the end result is the same,…loss of value.…
You work hard for your money, so you should keep…as much of it as you can.…If you want to avoid risks, there's actually something…called the risk-free rate of return.…For investors, this is the 10-year U.S. Treasury Note.…The Government of the U.S. guarantees payment…and has never defaulted, so this is the benchmark…for no-risk investment.…It is also one of the lowest returns available.…Right now, it returns a fraction of a percent a year.…
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