How to Invest Money for Financial Planning

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Introduction

Want to invest money but cant find a place to start? This free video clip gives you expert advice on beginning your investment process with financial planning.

By: Tammy Trenta

Source: Expert Village

Length: 2:21

Comments: 0

Tags: financing

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All Videos In The Series, "Financial Planning for Beginners"

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Video Transcript

"We're back for another segment of financial planning and today we're going to focus specifically on how to invest your money. Investing is not rocket science, contrary to what many financial advisers might tell you out there. And, it doesn't cost a lot of money necessarily and anyone can do it as long as your smart about the decisions that you make. Now, I can tell you one thing I know for sure, in fourteen years I have seen a lot of people lose a lot of money, and the ones who lost all of their money are the ones who took big risks. Now, 90% of people who invest their money with one company or they invested with the high FI interest stocks, they last, and you don't need to lose. We all have a day job that we do and that helps us earn money and it help us grow well for the future. Your investments should be something you put on auto pilot. And, I'm going to show you how to easily invest your money without costing you a lot of money. Now, one thing to look at is this example here which talks about having a diverse portfolio. What I mean by diversing your portfolio is investing a little bit in a lot of different things. And in the scenario up above we have $100.00 and in the first year, and the second year, and the third year, and the fourth year we're earning ten percent a year. So, you can see at the end of four years you're at a $146.00 so you've earned roughly 46% on your money by just earning ten percent a year. Now, you compare that with taking risky investments and you invest $100.00. Let's say in your first year you lose 50% of the value of your investment. So, in year two you're at 50%, even if you earn 40% for the next three years you're still not going to be close to how much you would have earned if you were just doing ten percent. And, my point is this, the risk is what kills people when they're investing in risky investments, it's investing where you have low volatility, low fluctuation, and consistent returns over time that help people create their wealth. So, now that we know this, lets figure out what type of investment makes the most sense for your situation."

eHow Article: How to Invest Money for Financial Planning

Expert Village: Tammy Trenta

Tammy Trenta

Video Series: Personal Finance

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