Investing

The days of job security are gone.  Decades ago employees worked the same job for years and then retired with a pension.  In today’s economy and job market no one is assured a job, especially one that will offer retirement benefits that are adequate enough to live on.  The task of planning a retirement is suddenly the individual’s responsibility.  Investing is the most important tool in helping someone prepare for the golden years.   This is the reason investing has gained popularity over the years.  As you are sleeping or spending time with loved ones your investments are earning money.

Everyone who has invested or is looking into it will have different circumstances and needs; therefore investing vehicles that are right for one individual may not be for someone else.  If you have never invested before it is highly recommended to speak with a professional prior to making any investment decisions.  The professional will be able to gear you to the best investment vehicle.  Any investor knows the two areas that are very important to consider prior to investing and they are investment intentions and investment character.

Investment intentions are simply what your goal of investing is.  Security of funds and capital appreciation will be main deciding factors.  You must contemplate if you want to be a conservative or aggressive investor.  Keep in mind the bigger the risk the greater the return.  Your age and income will also play a huge role on the types of investments that are right for you.  An older millionaire will have different objectives than a family just starting out with 2 young children.  Think strongly about how long you want to invest the money.  The shorter your time horizon the more cautious you need to be.

The last area is character.  It is often not thought about, but your character and personality have a lot to do with how you will invest.  Are you someone who is afraid of fast cars or roller coasters and get sick to your stomach in unpredictable situations?  If you are than you are more of a planner and not a risk taker.  The way you lead your daily life is exactly how you should handle your finances.  The last thing you want to do is lose sleep at night because you are worried about your financial gains or losses.

It is no secret that we have faced rough financial times over the past few years.  Due to that fact many Americans have shied away from investing for fear of losing everything.  The Federal Government was aware of this grim reality and had taken steps to ensure that the everyday person feels confident investing.  The step they took was on October 3, 2008 when the government approved a $700 billion financial rescue package.  One of the triggering points in getting the bill passed was the Stock Market.  The day the original bill was rejected the DOW took its largest decline in history, which was a 777 point loss!  Numerous investors lost thousands of dollars within a few minutes.  At that point it wasn’t a Wall Street problem it suddenly hit Main Street.

The bailout, as it is now referred to, is considered the largest financial intervention since the Great Depression.  The bill was passed to hinder the economy from falling into a deep recession.  There is a lot of mixed feeling about the bailout.  Some feel very strongly that the government was simply bailing out Wall Street.  I am not going to argue either side; however in the end the bill was imperative to get our economy back on the right track.  Helping Wall Street in turn benefited the everyday consumer in countless ways, including making it safe to invest again.

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