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| 8 Surefire ways To Invest Wisely |
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- Your No. 1 investment priority should be funding your own retirement. Saving for a child's education is less important.
- Put money aside regularly, in a variety of stocks and mutual funds.
- Consider several investment vehicles when putting aside money: the 401(k) plan, the Roth IRA, the Individual Retirement Account (IRA), the Simplified Employee Pension (SEP), and the Simple IRA.
- When you're investing for retirement, the growth potential of stocks is a better bet than conservative investments such as certificates of deposit, which barely keep up with inflation.
- To minimize the risks of investing in stocks, consider stock mutual funds. Mutual funds limit your risk by giving you a small part of a big basket of companies.
- One low-tech investment strategy is to invest in an assortment of index funds. Some index funds aim to match the performance of the Standard and Poors 500 or other market indexes
- Don't expect huge gains each year and don't worry about huge losses in the short-term. Keep your eye on the target, which is long-term, 10 years or longer.
- If you see your investments take a tumble and you can't sleep at night because of it, switch to a more conservative investment strategy, such as a balanced fund, a lower-risk combinations of stocks and bonds.
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of Winners
