Join Jane Barratt for an in-depth discussion in this video Measuring your progress, part of Personal Investing Basics.
- So, you have money to invest.…You have a plan.…You know your goals, you know your risk profile,…you know what you want to invest in.…Maybe you've already begun the journey,…and invested your hard earned money.…Now what?…How will you know if you're doing well?…How do you even begin to measure success?…First of all, it's super important to…go back to your objectives.…Did you want to be cautious and…preserve the money you have?…Or did you want to go all out and…generate huge returns?…The performance of your portfolio…needs to be seen in comparison to your objectives.…
You also need to look at what you've invested in.…If you invest in conservative government bonds,…you should not expect outsized gains.…Your performance needs to be compared…to the kinds of investments that you've bought.…So let's start by measuring gains.…First of all, there's a big difference…between realized gains and unrealized gains.…Realized gains are investments that you…sold for a profit.…The gain, called a capital gain, in most…parts of the world, is taxed.…
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