Investing wisely in your future... When saving for the future, how should you invest? There are a lot of possibilities, from conservative choices like bank certificates of deposit (CDs), to high risk over-the-counter stocks. When deciding which choices are best for you, consider your savings goal. If the money will be needed in less than four years, it should be invested safely. Money-market accounts, mutual funds, or treasury bills are all safe investment choices. If you have a long term savings goal--saving for a down payment on a house or for college tuition--consider starting a "cash portfolio" of stocks and bonds. Some stocks return can average up 12% annually, as long as you reinvest your dividends. For this type of long term investment, money that you will only use for a specified goal, plan on enforcing the "no touch" rule for at least four to five years. This is the time period that most analysts believe is required for the stocks to recover any losses. Be careful, though. Even if you are armed with expert advice, there is always room for the unknown, so choose wisely. |