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Five Fundamental Investment Principals


1.  Trade off Between Risk and Reward– Generally speaking, the higher the risk, the higher the potential return.  Keep in mind, that higher risk also means the potential for higher losses….

2.  The Benefits of Diversification– Spreading your investments across a number of different asset classes minimizes the chance of loss.

3.  The Power of Long-Term Investing and Compounded Returns– Historically, the longer you hold on to your investments, the more favorable and predictable the asset becomes.

4.  Liquidity and Marketability ConsiderationsInvestments like fine art and real estate can be difficult to market and liquidate with ease.  Keep a portion of your portfolio in highly liquid and highly marketable investments like Treasury Bills and Bonds.

5.  Tax-Deferral BenefitsConsider tax deferred investment accounts like IRAs and 401(k) plans as a means to reduce both your current and future tax liability.


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