How to Get the Best of Both Worlds-SaveMoneyGuides.com
The Author
Hey, my name is admin, and I first published 'How to Get the Best of Both Worlds-SaveMoneyGuides.com' on 27th July, 2008, within the Investing section.
From-SaveMoneyGuides.com-Perhaps not in the US, but in the Netherlands saving is hot (again) these days. I wonder whether those people have turned their back to the investment market at the same time. Hopefully not.
The investment climate however has turned quite rough lately. And a switch to (increased) savings is not at all without logic.
It is not a myth that many people talk about their investments on (birthday) parties, especially with a bull market. If you meet these same persons on new occasions and during a bear-market they will not start about their portfolio returns.
The problem is a lack of discipline. You don’t need to be a scientist to enter the stock market, there are investment funds that have spread some of the risk involved. You also don’t need to be an expert to understand that with current inflation threat, savings will not help you completely; you diminish risk, but even so the opportunities of a higher return.
There is an investment flavor for every preference. But in all those variations, the level of required discipline doesn’t change. The worst thing to do is switch to savings after reasonable losses. A decision driven by emotions. It is the task of discipline to avoid these mistakes.
The most famous and simple investment rule is to spread your risk, not into a basket of different funds or shares, but over time. So probably when you “feel” that it is time to switch to savings, you probably infringe the first law of investments. If you buy constantly over time, you spread the risk and combine the method of savings to the world of investments. The best of both worlds?
H.J.B.
