It’s important to select your strategy for investing. Are you a growth investor (aggressive), an income investor (conservative)? This has nothing to do with age, but it has everything to do with risk tolerance.
The determining factor is how much tolerance you have for risk, and how quickly you need or want to grow your money. This is an important thing to consider – many investors simply put money into the latest thing without considering the strategy they’re using, and those investors often get burned. Paying attention to your goals, your risk and your allocation is vital for healthy investing.
Through Exchange Traded Funds, you have a wide variety of both domestic and international companies and equities. You can build your own portfolio through ETFs and invest in sectors, industries and specific companies much easier than you can with Mutual Funds. ETFs are also much easier to exit out of, rather than the old “buy and hold” philosophy, which can help reduce your risk. Both growth and income investors can find the right ETFs for them. If you want more information about ETFs and how to invest for your goals and plans, please consider subscribing to our Successful ETF Investing newsletter.
For more information on this topic, watch the full video here.