While reading this chapter I learned a few rules to investing. The first is, do not put all your money in one place. By doing this you never lose all your money at once; however the other side to this is that you do not really gain that much money all at once either. Another rule is that if you are willing, taking risks pays off in the long run. Non risky investments may not cause you to lose much money but you also will not gain that much either. Also investing your money for long periods of time and letting the market play out tends to have more successful result.
This chapter helped me to understand what my grandparents do. We have a cabin on Lake Huron and my grandparents have our taxes attached to safe investments. This allows the taxes to be payed on a consistent basis by the investments. They are making money consistently but not large sums of money, they just need to make enough to pay off the taxes. With other money, my grandpa is on a board of trusties for a charity, he listens to what they invest their money in and why and then goes home and tells my grandmother to invest in that stock. They follows the rules that Wheelan brings up in this chapter. They have their money spread out and they take risks because they have been investing their money for over twenty years. This chapter gave me a deeper understanding of my grandparents investing.
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