Hashemian.com
Financial Markets For The Rest Of Us

Page 45

What is your investment horizon?
Short term - From a few hours to a few months.
Medium term - From 5 to 10 years.
Long term - More than 10 years.

What is your investment objective?
Capital appreciation - To increase your investment by a certain amount by a certain time.
Income - To derive your income from investment.
Retirement - To provide a secure nest egg.
Gamble - To speculate in the hopes of hitting it big.

What is your investment comfort level?
Aggressive - Can take substantial risk.
Moderate - Can tolerate some risk.
Conservative - Can take very little risk.

For those of us looking for the ultimate safety in preserving our hard-earned money, there is always the option of opening a savings account in a favorite bank. In a savings account your money is safely kept for you while earning a nominal interest (2% to 4% these days), and of course it is perhaps the most liquid type of investment, giving you immediate access. The reason savings accounts are safe is that banks generally have procedures in place giving savings and checking accounts a great degree of protection and availability. That means your deposits will be available for immediate withdrawal any time you wish to do so. Moreover, virtually all banking institutions in the US are protected by FDIC (Federal Deposit Insurance Corporation), an independent agency of the federal government that insures accounts up to $100,000. …