Long Term Investing Not Short Term Panic

“Patience Grasshopper” is the key to making it in the markets. The markets may be down but don't count them out just yet. Sure a lot of people have lost money in the short term, but if you are patient you will recoup those losses and more. Right now there are a lot of good bargains and if one does their homework they will find that they will make money. The thing is one has to think long term, hard as that might be these days, but the long term is where you will make it.

There are many ways to invest your money, even if you aren't that fluent in the stock market. Again it all depends upon your risk quotient, your monetary goals and your stage in life

If you are ready to invest money for a future event, such as retirement or a child’s college education, you have several options. You do not have to invest in risky stocks or ventures. You can easily invest your money in ways that are very safe, which will show a decent return over a long period of time.

First consider bonds. There are various types of bonds that you can purchase. Bond’s are similar to Certificates of Deposit. Instead of being issued by banks, however, bonds are issued by the Government. Depending on the type of bonds that you buy, your initial investment may double over a specific period of time.

Mutual funds are also relatively safe. Mutual funds exist when a group of investors put their money together to buy stocks, bonds, or other investments. A fund manager typically decides how the money will be invested. All you need to do is find a reputable, qualified broker who handles mutual funds, and he or she will invest your money, along with other client’s money. Mutual funds are a bit riskier than bonds.

Stocks are another vehicle for long term investments. Shares of stocks are essentially shares of ownership in the company you are investing in. When the company does well financially, the value of your stock rises. However, if a company is doing poorly, your stock value drops. Stocks, of course, are even riskier than Mutual funds. Even though there is a greater amount of risk, you can still purchase stock in sound companies, such as G & E Electric, and sleep at night knowing that your money is relatively safe.

The important thing is to do your research before investing your money for long term gain. When purchasing stocks you should choose stocks that are well established. When you look for a mutual fund to invest in, choose a broker that is well established and has a proven track record. If you aren’t quite ready to take the risks involved with mutual funds or stocks, at the very least invest in bonds that are guaranteed by the Government.

Patience and doing one's homework is the key to making it these days (or any days really) in the markets. Be smart, don't panic and things will work out fine.

Come back next week for more tips, tricks and techniques that assist you in living the Champagne Life on a beer budget. We're all in this together, and I'm pulling for you.

Mahalo.

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