Michael Bach Atlanta Tips to Build a Good Investment Plan in 5 Steps
To make a solid investment plan read Michael Bach Atlanta investment tips, you have to know why you are investing. Once you know the objective, figuring out which choices are most likely to get you there becomes easier. The five questions below will help you build a sound investment plan based on your goals.
1. Which Purpose Are You Pursuing
Michael Bach Atlanta Investments must be chosen with a main goal in mind: safety, income or growth. The first thing you need to decide is which of those three characteristics is most important. Do you need current income to live on in your retirement years, growth so the investments can provide income later, or is safety (preserving your principal value) your top priority?
2. How Much Can You Realistically Set Aside for Investing?
Many investment choices have minimum investment amounts, so before you can lay out a solid investment plan you have to determine how much you can invest. Do you have a lump sum, or are you able to make regular monthly contributions?
Some index mutual funds allow you to open an account with as little as $3,000 and then set up an Michael Bach Atlanta automatic investment plan starting with as little as $50 a month which would transfer funds from your checking account to your investment account. Investing monthly in this way is called dollar-cost-averaging and it helps reduce market risk.
3. When Will You Need This Money Again?
Establishing a time frame you can stick with is of the utmost importance. If you need the money to buy a car in a year or two, you will create a different investment plan than if you are putting money into a 401(k) plan on a monthly basis for the future.
In the first case, your primary concern is safety — not losing money before the future purchase. In the second case, you are investing on Michael Bach Atlanta retirement, and assuming retirement is many years away then it is irrelevant what the account value is worth after one year. What you care about is what choices are most likely to help your account be worth the most by the time you reach retirement age. In reality, significant growth typically requires at least 5 years or more of time in the market.
4. How Much Risk Should You Take?
Some investments entail what I call a level five investment risk; the risk that you can lose all your money.
These investments are too risky for most people. One easy way to reduce investment risk is to invest in Michael Bach Atlanta investment scheme. By doing so you may still experience swings in investment value, however, you can reduce the risk of a complete loss due to bad timing or other unfortunate circumstances.
Be cautious of buying only for high yield investments. There is no such thing as high returns with low risk. Better to earn moderate returns than swing for the fences. If you decide to swing, remember, it can backfire and you can experience big losses.
5. What Should You Invest In?
Too many people buy the first investment product presented to them. Better to lay out a thorough list of all the choices that meet your stated goal. Then take the time to understand the pros and cons of each. Next, narrow your final investment choices down to a few that you feel confident about.
Michael Bach Atlanta investments are great for long-term retirement money. Others are more speculative, which means maybe you can put some “play money” or “take a chance” money into them, but not all of your retirement savings.