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Zhi Finance » A golden idea for people who are nervous when investing

A golden idea for people who are nervous when investing

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If you think that deposits without FDIC guarantee will be risky, you have no chance to worry about losing money in the investment market. When you lie in your own bed at night, you will sleep well, safe and warm; But one day you will spend all your savings. Take a little more investment risk, it will not be like this!

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Refer to the following golden idea to improve the investment risk and income at the same time.

  • 1. Different investment methods will result in huge differences in income: at present, in the United States, if you only invest in FDIC guaranteed deposits, the yield is nearly 1%; If you choose to buy public funds and combine stocks and bonds, the yield may be close to 7%. If you take out 10000 dollars and invest for 20 years at the interest rate of 1%, you can earn 12201 dollars. If you put out $10000 and invest for 20 years at a 7% interest rate, you can earn $38697. If you think the stock market is too risky, you can earn 26533 dollars by choosing a bond fund with a return rate of 5%.
  • 2. In the long run: Even if you are going to retire soon or just retired, I still hope that your money can be used for decades from now on. In other words, when taking some risks, it is usually necessary to consider from the perspective of long-term investment.
  • 3. Think from the perspective of investors: If you can view the rise and fall of the value of investment products from the perspective of investors, even if the FDIC cancels the guarantee for some funds, you can still sleep at night.
  • 4. Diversification: If you spread your money to different public funds for investment, you will find that they have both ups and downs, and the overall investment portfolio tends to be stable. You can share some of the money as FDIC guaranteed deposit, so that you can not sleep at night. To effectively achieve investment diversification, five to seven public funds with different objectives can be selected from several different fund categories.
  • 5. Allocate assets according to strategy: When choosing public funds for investment, remember that stock funds are the most volatile and bond funds have less long-term returns. Cash is the safest, but the least profitable. You can freely allocate your investment, but most advisers would advise: invest at least one-third of your capital in stocks until you can clearly predict that the capital will depreciate in ten years; At that time, for the sake of security, the money was moved to bonds and cash.
  • 6. Find trusted friends. You can find people you trust and your spouse to help you find a good way to balance risks and benefits.
  • 7. Save more money: If you still think that you will lose money if you invest with money, you must save much more money than you invest. Talk to your partner about setting a budget to make sure you can save as much money as possible in the future.

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Sounds funny, doesn’t it? Sometimes, taking a little risk becomes a big thing. Don’t be fooled by this idea. There is always a way to compromise and balance risks, so that you can not only save enough money for retirement, but also sleep soundly at night.