Everybody would like to think the decisions they make when it comes to investing are “wise”, but they’re obviously not. Unless you’re extremely wealthy and have enough money to fling around almost carelessly, then you should be cautious and take your time to decide what would best “wise investment ideas” for you and your financial needs. Obviously, the very first step is to evaluate your level of comfort in taking on risk. What is your “risk tolerance” level?
Think about the type of investments you would like to make as well. You probably already know that you need to diversify your portfolio a bit and to not put all of your eggs in one basket. Just because stocks are often “high risk” doesn’t mean it it’s always unwise to invest in them. It can actually be the opposite – you might make a very unwise decision by not buying or selling at a particular time.
Even if you’re not interested in stocks right now, there are plenty of other investment opportunities for the short-term and long-term.
While they do often provide wise investment ideas, don’t just blindly accept that a certain “pick” by the investing experts is going to be a good choice for you. Take at least a few minutes to look for more information about that particular pick. Think of picks more as recommendations rather than something that is set in stone to be a good investment at the moment.
Also consider a mix of investments and risks at an amount that is appropriate for your portfolio. Historically speaking, the returns of the three primary asset categories (bonds, stocks, and cash) have never gone up or down simultaneously. At some point, one or two of these will be up and at some point one or two will be down, but never all three at once.
Wise Investment Ideas Should be Performed Wisely
Just whatever you do, don’t make the mistake of investing heavily in shares of any individual stock or employer’s stock. Always be strategic and limit the amount you could wind up losing. It’s okay to sacrifice a bit of potential gain, but you don’t want to miss out on good, profitable opportunities either.
While the following might not be wise investment ideas for every single investor, they are still worth looking into:
• Walt Disney – the theme parks will reopen eventually and bounce right back up again
• Walmart – it has been announced that the Super Centers parking locks are going to turn into drive-in theaters in corporation with Tribeca Enterprises
• Diversified Bond Index EFTs – simply because individual bonds aren’t the best option. Plus, their minimums are usually too high.
• Long-term CD account – As far as “wise investment ideas” go, putting money into a savings account with a high APY always makes sense. As long as you can keep a decent amount of money in a Certificate of Deposit account for more than 2 years, you can expect a decent amount of profit.
Looking for some more picks and recommendations? Once again, you should always do additional research on your own to make sure you truly are making smart choices. However, you can get started with wise investment ideas at Motley Fool. It’s a leader with a wealth of resources, information, education, and an excellent newsletter.