Author Topic: New to investing  (Read 1615 times)

pabb007

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New to investing
« on: August 14, 2013, 01:40:42 PM »
What are ways to invest with low risk?

KingCoin

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Re: New to investing
« Reply #1 on: August 14, 2013, 01:45:33 PM »
Risk is directly proportionate to return, so low risk investment will have low expected returns.

If you're new to investing, read these books as a good place to start:
http://www.amazon.com/Random-Walk-Guide-Investing/dp/039332639X/ref=sr_1_3?s=books&ie=UTF8&qid=1376508625&sr=1-3
http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365

jfer_rose

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Re: New to investing
« Reply #2 on: August 14, 2013, 01:55:00 PM »
There's no such thing as low risk. Let's say you decide to put your money in the best online savings account. Let's pretend that savings account gets 1% interest (really great for a savings account these days). If inflation averages 3%, you just lost earning power on that so-called low risk investment.

You need to decide how much risk you are comfortable with. KingCoin got it with "risk is directly proportionate to return." If you're super risk adverse and opt for savings accounts or other "low-risk investments", your money will lose earning power due to inflation.

pabb007

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Re: New to investing
« Reply #3 on: August 14, 2013, 01:55:22 PM »
Thanks!