Ways to choose a strategy
This factor includes your age, income, and financial situation when choosing investments.
Risk profile
Putting money into investments regularly, like every month.
Investing
Getting into investments as soon as possible
Starting early
Saving money for when you don’t work anymore
401k
A plan for how you spend or save money
A budget
This term describes how long you plan to keep your money invested.
Time horizon
Keeping your money invested for a long time instead of selling quickly is called this.
Long term investing
Taking the time to learn before making big choices
Research
A goal you want to reach by the end of the year
Short term goal
Money you put aside so you don’t spend it
Savings
Investors with this tolerance prefer safer, lower-return investments.
Low risk tolerance
Earning money on your money over time is called this.
Interest or Compound interest
Don’t change just because of one bad thing
Sticking to your plan
Saving money for any emergency
Emergency fund
Money that you earn from a job or allowance
Income
Younger investors often take more risk because they have more of this.
Time
Checking your investments and making changes when needed is called this.
The review of investments
A person that helps you make smart choices.
Financial advisor
A goal that has clear meaning and plan
A specific goal
This is money you spend on things like food, clothes, and entertainment.
Expenses
This means choosing investments based on your personal goals and situation.
A plan
Trying to guess the best time to buy or sell investments is called this.
Market timing
This advice means not making quick money decisions based on trends or what everyone else is doing.
To not follow what others are doing
Buying a car or paying for college is what kind of goal
Financial goal
What is it when you save your money before spending it
Paying yourself first