https://padlet.com/justdust51501/o64vt2btzidc By Dusty Abate en-us 2020-03-20 18:28:10 UTC 2023-01-26 21:13:54 UTC hello@padlet.com https://padlet.net/icons/png/1f4c8.png justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468336568 Here you will learn about different types of investments including stocks, bonds and mutual funds, as well as the risks and benefits of each investment type.]]> 2020-03-20 18:32:27 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468336568 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468336962 When thinking about investing, stocks are usually the first option that come to mind. A stock is a share in partial ownership of a company. Stocks are easy to buy and easy to sell. The two ways to benefit from investing in stocks is through stock appreciation and dividends issued through the company. Stocks can be highly rewarding but also come with higher risk factors because you are not guaranteed to get returns  on your investments, as well as the fact that there is potential for you to lose your initial investment and more. Stocks are best suited for investors who are confident in their investing capabilities and are willing to take bigger risks for a potentially bigger reward. ]]> 2020-03-20 18:32:47 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468336962 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468337170 All types of investments come with their own risks and rewards. Some investments are known to be safer than others but may have a lower return, while other investments can prove to be higher risk, but with a much greater return. ]]> 2020-03-20 18:32:57 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468337170 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468338144 This pie chart displays an example of an investment portfolio. Each section of the pie chart represents a different kind of investment. The best way to balance risk and reward is to diversify your investment portfolio with different assets.]]> 2020-03-20 18:33:46 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468338144 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468338377 To understand the risks and rewards of investing, you first need to know how it works and what type of investor you are. Some investors are willing to take bigger risks for a greater reward, while others tend to be more conservative with their assets. Investing in the stock market is the most common way for beginners to gain experience, learn what risks to take and how to benefit the most. There are investment services that can help with this as well, such as online brokers, robo-advisers and investing through you employer. This quick guide will provide the general information for entering the world of investing.]]> 2020-03-20 18:33:57 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468338377 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468338538 Risk is the potential for uncontrolled losses of value, it can consist of various factors that negatively impact your investments. Some potential risks when investing include market risk, liquidity risk, inflation and horizon risk. Risks can be unavoidable when investing, without taking risks there would be no potential for reward. Risk is a main reason why people are hesitant to invest their money, which is why it is important to be an informed investor and not make irrational or ill-considered investment decisions. This list contains 9 different risk factors, with at least one or more applying to each type of investment discussed here.]]> 2020-03-20 18:34:06 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468338538 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468338902 The benefits of investing can be bountiful and they are what every investor aims for. Without the potential for return there would be no reason to invest and risk your money in the first place. Some basic benefits of investing include staying ahead of inflation, building wealth, early retirement, saving money on taxes and various other financial goals of your choosing. Those benefits alone are exemplary reasons why everyone should invest. You don't have to be a billionaire genius like Warren Buffet to profit from investing, with the right guidance and tactics anyone can reap the rewards of investing their money.]]> 2020-03-20 18:34:18 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468338902 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468339053 Knowing the differences and similarities between different  investment types is important, but that is only one key factor. You must establish investment goals and create a timeline to achieve these goals, this will effect the type of investment choices you make. The sooner you start investing the sooner you  can start profiting, but you must be comfortable, a financial advisor can help asses the risks and make investment decisions for you. Avoid key investment mistakes, some common mistakes that are made include lack of knowledge, going all in on one single investment, investing all of your cash and more. Remembering  and utilizing these key factors greatly increase the likelihood of succeeding in the investment world.]]> 2020-03-20 18:34:27 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468339053 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468339466 Bonds are like a loan from the investor to the company. The investor purchases the bond with an agreement from the issuer that the full amount will be paid back to the investor once the bond has reached maturity, plus regular interest payments while the bond matures. Bonds are known for being a safer type of investment, with the benefits of being predictable and stable. Bonds are also not without risk, companies can go bankrupt and default on paying back the principal. Rising interest rates are also a risk factor as they can diminish the value of your bonds. Bonds are ideal for investors who want a lower risk investment that can still provide a good return.]]> 2020-03-20 18:34:47 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468339466 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/468339642 A mutual fund is a financial vehicle consisting of a pool of money collected from various investors to invest in stocks bonds and other assets. Mutual funds are run by professional fund managers, with the goal of producing income or capital gains for the investors of the fund. Mutual funds have a reduced risk factor due to the diversification of the fund, you also have a team of fund managers doing the work for you, but it comes with the cost of management fees. Poor performance still presents itself as a risk for mutual funds along with market risks affecting the investments within the fund. Mutual funds are considered to be in the middle of the risk/reward spectrum and are an ideal investment vehicle for a retirement fund.]]> 2020-03-20 18:34:56 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/468339642 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/469919172 Referring back investing 101, there are many different investment strategies that define the characteristics of different investors. Your approach to investing impacts the amount of risk taken and benefits received. The three factors that determine the type of investor you are include the time you are willing to spend, financial preference and investment knowledge. These factors can determine what kind of investment vehicles you should utilize to your advantage and where you reside on the passive/aggressive spectrum. Passive investors prefer to hold onto their investments for long periods of time with the risk of potentially taking large losses. More aggressive investors consist of day traders who constantly buy and sell investments but run the risk of capital losses. Your investment personality may change over time depending on your goals and investment experience. ]]> 2020-03-22 18:16:56 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/469919172 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/479946750 What surprised me the most is how every type of investment has their own risk factors and that none of them are 100% safe or guaranteed to make a profit. I now understand why a lot of people do not invest or are uninterested in it altogether. After analyzing the benefits however, I believe that anyone who has the time and resources to invest certainly should.]]> 2020-03-28 20:52:40 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/479946750 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/479946827 This is a very interesting topic to me, as I see lots of potential for risk and success in the investment world and have learned from it. I tried my hand in the stock market once, but lacked the time and determination to succeed with it. I ended up selling all of my shares and closing my TFSA account. This was a valuable learning experience for me, as I had come to realize that its not just about "having your money work for you" as they say. You have to invest your time and knowledge into your investments to really benefit from them, not just your cash.]]> 2020-03-28 20:52:50 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/479946827 justdust51501 https://padlet.com/justdust51501/o64vt2btzidc/wish/479946892 There are a lot of important factors to consider when investing, but I think the most important piece of knowledge is to have a plan. Don't just aimlessly invest in something that looks promising on the outside. Do the research and create financial goals to achieve, you can always change or adjust these goals over time and you will be able to make smarter decisions that will lead you closer to achieving these goals in the long run.]]> 2020-03-28 20:52:58 UTC https://padlet.com/justdust51501/o64vt2btzidc/wish/479946892