• November 18, 2022

Investing Guide: Tips for Selecting the Best Type of Investments and Educational Resources

Interested in investing but not sure exactly where to start? Or are you someone who already buys or trades a bit and wants a good, solid guide to investing to help you make better decisions?

It’s important to understand common strategies, and part of this relates to knowing some of the differences in asset classes. The term “asset class” simply refers to a group of similar types of investments. Some people prefer to stick with one asset class, while others are much more versatile. At first, it may be a good idea to stick with just a few similar types of investments within the same asset class, and then consider expanding your portfolio as you gain more experience and knowledge.

Investment types to look for

Here’s a quick rundown of the different classes:

• Fixed income or debt: the investor lends money to an institution (usually banks) or the government and earns interest in return. These investment types include CoD and bonds.

• Stocks: Actually buying shares in something (shares).

• Real Estate: Buying, owning, and ultimately selling physical property when the time is right. Obviously, you are not required to live in or even visit the properties in which you invest.

• Cash and cash equivalents: The investor deposits the money in a savings account that pays interest or exchanges currencies.

• Commodity: Similar to real estate in that you would own physical things, except it is a “common” product, item, or resource that many people need, such as precious metals, fossil fuels, food, etc. You are not required to have them physically in your possession.

• Derivatives such as futures: This means that you own the trades (options and futures), and their value depends on the underlying asset. This asset class can be tricky, so if you’re interested, you’ll need a detailed guide to investing in them.

Guide to investing in stocks

If you’re interested in stocks, you should join a good newsletter and resource program that offers all the tools and guides you need to invest in the best stocks. There are many so-called “experts” who claim to offer “best stock picks,” but not all of them may be correct. The REALLY GOOD, legitimate experts don’t give their picks for nothing. That’s why the best newsletters usually require a subscription.

The best guide to investing, particularly with a long-term perspective, is the Motley Fool. It is a highly, HIGHLY recommended platform that includes subscriptions to newsletters, resources, wealth management tools, etc. They are particularly known for their top-tier stock picks.

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