Once you’ve established your financial goals, your tolerance
for market risk, and your investment time horizon, it’s
time to select the actual securities you plan on buying. The
3 basic investment vehicles are stocks, bonds, and mutual
funds.
At the higher risk, higher reward end of the spectrum, stocks
represent your best opportunity for long-term growth.
There’s a place in every portfolio for bonds, because
they operate differently from stocks. Bonds offer more stability
to help preserve the amount of money which you initially invest.
Mutual funds offer the simplest and most diversified investment
alternative--they’re also a way to hand off the day-to-day
management of your portfolio to a real pro.
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