Presentation on theme: "Investment Triangle. The ideal investment would provide all: it would be completely safe, it would provide you with a sufficient level of income to keep."— Presentation transcript:
The ideal investment would provide all: it would be completely safe, it would provide you with a sufficient level of income to keep pace with inflation AND your principal would grow.
Portfolio Mix Investing basics: the perfect investment would be safe, provide income and grow. Unfortunately, it doesn't exist. Instead you have to understand investing basics so you can combine investments (which is called building a portfolio) to achieve the right combination of safety, income and growth
Portfolio Mix The first step to investing is to determine which of the following results are most important to you: Safety - How much risk are you willing to take?? Income - Do you need money from your investment now? Or want to reinvest it? Growth - How much to do want your investment to grow to??
Investment Triangle As you move toward one corner of the triangle you move away from the other two. If you want an investment that is safe, you have to be willing to accept less income and growth. If you want an investment that produces consistent income, you have to understand that it will not grow as much.
Investment Triangle Consider stable companies like GE, AT&T, Walgreens vs. technology companies like apple, facebook, and Groupon When you're talking about investment risk, what do terms like "low risk" "medium risk" or "high risk" really mean? The question you need to answer is, "Can I lose my money?"