Steps to Investing Foolishly
Tuesday, 08 November 2011, 00:07 IST
Bangalore: Taking care of finances is assumed by many as a mysterious and complex. And they rather describe it as tedicious task to keep a track of every penny that comes in and goes out. Some consider hiring a financial advisor who will help them manage their finances. But at the same time there are a set of people who think its waste investing money on a financial advisor as they know better what they have to do with their money. Well these are people who are definitely very good with numbers and have a sound knowledge of investing in stocks.
A huge number of investors, be they young, old, new to the market, or old hands, have never bothered to give themselves or their financial status a checkup before jumping into investing. Chances are that these decisions will hinder their future financial standing.
Change Your Life With One Calculation
Words cannot adequately describe the magical nature of compound interest. Remember, the amount you save and your time horizon how long you have until you need the money you've invested are only two-thirds of the compounding equation. The more risk you take the greater returns you can enjoy. People consider bonds as safe investment portals but even they have their own pitfalls. They can be disastrous. It's not simply that they return less. They barely keep up with the rate of inflation, and that your retirement saving is not going to go as far as you think.