Most young adults successfully graduate from school without a practical understanding of personal finance. Starting out with a solid foundation and some smart financial habits can help your children live a happier, more fulfilling life.
Diversify across a wide variety of investments to help buffer against market volatility. Reduce your risk by diversifying across different companies, municipalities, industries, and geographical areas.
Mutual funds are professionally managed, making them ideal for individuals with limited investment knowledge or limited time to research and monitor individual stocks.
A well diversified portfolio should contain a good balance of growth and value stock mutual funds or blended funds, which are a combination of growth and value. Growth and value funds perform well at different times in different market conditions, so they tend to counterbalance one another.
Many investors think of investing as a competition between investing in the stock market, interest earning investments and real estate. Too many people take a strong stance for or against one of these three broad categories rather than embracing the advantages that each one can bring to their portfolio.