Convincing someone that they need to invest their money is hard enough without all the choices that come next. Stocks, bonds, real estate, funds – it can seem like there is an endless amount of options for investing. So how are we supposed to know where to start?
First, it is key to establish how much risk you are comfortable with. Some options are riskier, but they also have the greatest upside. For people who are more averse to risk, there are more stable options that grow your money slowly, over a long period of time.
Second, make sure you diversify. Putting all your money in one investment option is usually not a good strategy. If it does not perform well, you are in big trouble.
For more, read the full article here.