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Summary: Choosing stocks to invest in requires considering the length of time of the investment, the amount of money being used for the investment and the ability to handle risk. Consider investing in mutual funds to avoid substantial loss with a single stock using advice from a financial adviser in this free video on investing and money management.
Roger Groh is the founder of Groh Asset Management. He manages portfolios for many types of customers, including customers seeking growth, income, stability or international customers.read more
"Are you looking at the decline in stock prices over the last couple of years? Hi this is Roger Groh at Groh Asset Management. If you have extra money you might be starting to think about investing in the stock market and wondering what you should buy. Like many things the length of time that your money is going to remain in that asset category will help determine the kinds of things that maybe you should buy or shouldn't buy. If you're time frame is a day well the type of stock that you would buy is different than if your time frame is 30 and 40 years. With only a few dollars, rather than buy one stock, maybe you should consider a mutual fund or an index fund that would generally go up and down with the stock market but give you diversification across a number of industry groups and stocks. That way you are not going to get stuck with picking one bad stock. On the other hand if you have a substantial portfolio then especially over the next year or two or three as the US remains mired in recession, you need to talk to a pro and team up with a portfolio manager that really understands what they're doing. It is going to be much harder to find reasonable growth in the next couple of years and talk to a pro. I'm Roger Groh at Groh Asset Management. Thank you very much for spending time with me."