Friday, May 7, 2010

Diversify your investments

Everything that you invest in has its own pros and cons. That's why it's wise to put your money in various forms and investments, so that you spread your risk around.

For a lot of people, cash is still king. Admittedly, it certainly is the most liquid and the most versatile. The problem with cash is that its value usually declines in the long term, unless you earn interest on it that will beat the inflation rate.

Solid investments like a parcel of lot, on the other hand, appreciates in the long term, however, it is so solid that you may not be able to dispose of it quickly if a sudden need arises.

It's good to have both, and also the in-betweens, like stocks, bonds, treasury bills etc. Lately, people are also starting to buy gold bullions as previous metals are considered very stable investments and appreciate over time. Of course, you do have to check that your source is a reliable one. I'm studying the United States Gold Bullion, and so far it looks like a good source.

Forex trading is also something that one can consider. Or, if you want an expert to watch over your investment and have built in diversification, maybe mutual funds are for you.

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A part time ophthalmologist, part time micro business owner, part time graduate student and FULL TIME MOM struggling to find balance in the confusing world of multitasking :)