Here, we will put together a step-by-step investing strategy to help you meet your financial goals. We'll also reveal why investors lose money in the stock market and how to match your financial goals with your investments.
Despite all the analysis of investments on TV and across the internet, investing isn't about the stocks and companies – it's about YOU! The stock market and other investments will provide a return for a certain amount of risk.
Other investments will almost certainly provide modest single-digit returns. The only question you need to ask is how much risk you will take for how much return. That's why the first step in any investment strategy is to create a personal investment plan.
A personal investment plan is one of the most critical concepts in personal finance. Unfortunately, it's also one of the most neglected.
That's why the average investor return was just 2.6% annually for the decade to 2013, even as the stock market returned 7.4% and the bond market offered a 4.6% annual return over the period.
Once you know how much of your money you want to put in stocks, it's time to think about which stocks you should buy. We carry the idea of diversification into stocks as well.