Join Jane Barratt for an in-depth discussion in this video The five building blocks of the stock market, part of Personal Investing Basics.
- One of the hardest things about investing…is getting started.…And one of the things that stops people…getting started, is understanding what…all the words mean.…In this video, I'm going to cover…the five basic building blocks of investing.…I'll start with simple low risk products,…and move up the scale to more…complex, higher risk products.…So let's start with something simple: cash.…Cash is the easiest thing to understand…because we use it every day.…Generally, you give your spare cash to a bank,…and you earn interest if you're lucky.…These days, banks pay terrible rates of interest.…
But in the US, they guarantee deposits…of up to 250,000 dollars.…So it's safe, but not strategic.…You can invest in cash equivalents,…also known as money market accounts,…or certificates of deposits, also known as CDs,…or t-bills.…These pay slightly higher interest rates…than your trusty savings account, but you…can't move money in and out of them easily,…like a bank account.…For something that has better returns,…but more risk, let's look at bonds.…
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