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Investing
Discover The 60–40 rule in investing + The four investment strategies
When it comes to investing, there is no one-size-fits-all approach. The best way to develop an investing plan is to assess your financial goals and create a strategy that fits your unique situation.
Here are a few things to consider when developing your investing plan:
1. What are your financial goals?
Do you want to save for retirement, a child’schild’s education, or a rainy day fund? Be specific about your goals to create an investment plan to help you reach them.
2. How much risk are you willing to take?
Investing involves risk, and the level of risk you’re willing to take should be based on your tolerance for losses and your time horizon.
For example, if you’re investing for retirement, you may be able to stomach more volatile investments since you have a longer time frame to recoup any losses.
On the other hand, if you’re saving for a short-term goal, like a down payment on a house, you’ll likely want to stick with safer investments.
