Developing Your Investment StrategyNovember 29, 2016 | Pete the Planner
Deciding you are ready to invest is a pretty big decision, but it’s only the beginning. Investing comes with a whole new vocabulary, and many people hesitate to invest because they are confused by the jargon.
What’s the difference between saving and investing? Saving is all about preserving and protecting your future. This is why developing an investment strategy is so important. When you begin to invest, the chance for loss enters into the equation. Saving money is safe. Investing money involves risk.
An investment strategy will help you understand the path you are about to embark on. You should understand major factors as you start to develop a strategy, such as time horizon and risk tolerance, and then the difference between cash, stocks and bonds.
In Pete the Planner’s Guide to developing your investment strategy, Pete walks you through the initial steps of developing an investment strategy. Understanding the terms involved, and developing a basic knowledge of investing will serve you well when you meet with a financial professional to create your strategy.