Financial Investing

Throughout reading these four articles you can see an abundance of different ways to

invest your money safely and efficiently. There are so many different choices that an investor is

able to pick so that they can make sure they have the right type of plan that can secure their

future for them and their family. These articles have all had very different ideas of decent ways

to invest your money, but they all also have a few key themes that will help you in the long run.

One of these themes is starting to invest your money early. From Jim Cramer's 3 tips, it is

suggested that it’s never too early to start investing for your retirement, plus he also mentioned

that it is safer to take bigger risks when you are young. Along with this, Suze Ormans’s 3 tips

says that starting your investing sooner is for the better. Two of the investors also had a heavy

theme of making sure you do your research and fully understand what and how you are investing

in. Dave's Investing Philosophy states that you should never invest in anything until you

understand how it works, how much it will cost, and how that will affect your savings long-term.

Warren Buffet says you need to understand the labor relations, pricing, capital requirements,

revenues, etc. . He states that “investors should buy shares only in companies within their own

circle of financial and intellectual understanding”.

I believe that investing early and understanding your investments are both extremely

important steps to reach your goals. The sooner your money starts making more money, the more

you will have saved by the end. As well as the more room you have for risks or mistakes.

Investing late can cause many problems and you’ll be on a limit with how many big risks you

can take. Making sure you are able to keep up with the knowledge you need to have in order to

keep your investments is also vital. If you don’t understand the situation then you won’t know

how to make the right decisions and be a good investor. Working with a financial advisor was a
great type for beginners from Dave’s Investing Philosophy. Investors that are just starting to

begin saving their money most likely have no clue what they are doing, they need guidance from

somebody they can trust and depend on.

Similarities between the experts' views were prominent, but there were also a

couple of disagreements that came along. For example, both Dave’s Investing Philosophy and

Suze Orman’s types believed that diversification was the best route to go. Diversification is

buying stocks from multiple investments instead of just one. Dave believes this is the best way to

invest because it doesn’t come with the risks of just putting your money into one business. This

is why he only suggests using mutual funds. Suze Orman also says that diversification is the

safest way to save. She described it as “putting all your investment eggs in one basket”. Unlike

those two, Warren Buffet says that diversification increases rather than reduces risk. He states

that it becomes impossible to “watch all the eggs in too many different baskets”. Between these

two opinions, I believe diversification would be the most efficient. Spreading your investments

to different businesses reduces the risk associated with individual stocks. This makes it easier for

the investor to become comfortable with their investments and have fewer failures. Investing in a

single stock forces there to be too much reliance on one investment.

When creating my investment strategy, I find it most important to make sure I

have the right amount of money to do what I need, and also have the correct information to make

sure I’m able to make the right choices. I would like to start investing at age 20. This way I can

save up some emergency fund money before I start to invest. Saving up an emergency fund will

protect me in case I need to pay for spontaneous medical bills, I won’t have to jeopardize my

savings. Once I do start, I will begin with mutual funds. I want to invest in multiple stocks and

also be able to have this investment for the long-term. I’ll also work hard to pay off my debt.
From the articles I’ve learned that it is hard to continuously make profit while also paying off

your debt. I hope to pay my debt fast so that I can focus on making my savings. The last

principle I’m going to have is to work with a financial advisor. I want to be sure and trust that I

am making the correct decision for me and my future. I know that I will feel a lot more secure if

a financial advisor helped me make my investment decisions.