Today more than ever, planning for your retirement demands that you stay ahead of the financial factors that shape our economy. With so many different types of investments to choose from, how does an investor determine the best path of wealth creation? Again, it is important to remember that every individual is different and that there is no one model that works for everyone. However, there are two underlying principles to consider when deciding which investment is right for you, Resources and Time.
Resources
On your path to financial freedom, the single most important factor to consider when evaluating your risk tolerance is the amount of money that you can afford to lose. Again, all investors are not created equal. By only investing money that you can afford to lose or afford to have tied up for some time, you won’t be pressured to sell off early because of panic or liquidity issues. Stated plainly, the more money you have, the more risk you are can afford. Take the example of Bob Millionaire who can afford to put $5,000 to $10,000 into his investment portfolio each month and has a net worth of over $1,000,000, […]

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