The power of invest

Investment based on two simple princelings: 1. your money would be invested in a combination of cash, bonds and stocks and 2. That the nature of this combination should change over time as your life situation changes.

As you can see, the pyramid divvies your financial life into four distinct periods, the getting started years, the making money years the preretirement years and the retirement years. At each point, your needs and goals are different and at a result you should probably have a different combination of investments.

Within each period, the pyramid suggest that percentage of your nest egg should be allocated toe each of five standard types of investments. In order of risk form safest to most risky, these are cash, bonds, income investment, growth investments, growth and income investments and aggressive growth investments.

The base of the pyramid rest on the safest incitements. As you way up the pyramid, you take on more risk, moving from growth and income to goer hot aggressive growth. Aside from the fact that you always want your retirement account to be built from the ground up with safe investment first, the mixture of risk categories that is right for you depends on your age. The younger you are, the more risk you can afford, since you have more it e to ride out a bad stock market or there economic downturn. The opposite is true for someone who is already retired. The principle is amazingly smile and what more, it actually works.

I suggest you put your money in appropriate mutual funds. Mutual funds not only offer professional money management, derivation and case of use but most now allow you to start investing with a  little as $50. Some eve accept monthly investments as low as $25