Use 5 Money making investment strategies, income, value, growth, trading and speculation to build wealth. Financial security and retirement comfort comes with investing success.
Money strategies – planning & managing wealth, Lesson 8, covers the basic strategies available to any investor. Using those strategies investors can grow wealth and retirement comfort. Links at the lesson end guide you to related content to learn more.
What’s in this lesson for me?
Knowing the basic investing strategies opens the door to your financial security. Learning how to use these strategies lets you choose retirement comfort and security. That gives you ways to grow wealth.
The 5Â investing choices:
   From low to high risk
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Income
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Value
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Growth
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Trading
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Speculation
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Risk acceptance
Beginners to investing must understand and accept there are degrees of risk when investing. Risk free means sitting on cash deposits and getting meager returns less than inflation. That puts you behind and falling further behind each year. Within each investing strategy there are numerous variations but none without risk.
Parking money in a savings account or a Guaranteed Investment Certificate is without risk. That can keep cash safe but loses purchasing power to inflation. Inflation will always exceed interest returns on cash deposits.
Only scams promise risk free returns greater than inflation. Unfortunately they ultimately produce 0% return at a cost of 100%.
To simply keep up with inflation requires that you accept some risk. That risk can be managed and kept small but can never be eliminated.
You can make many reasonable investment choices at lower rather than higher risk. When you select lower risk, generally speaking, you are agreeing to accept a lower rate of return.
Reaching for greater returns requires accepting greater risk. That risk can be managed but no investing approach eliminates all risk. Investors accept that risk free investing is impossible.
Knowledge improves returns
Building your knowledge and understanding of markets and investing will help you understand risk and learn how to manage it. Think of learning about investing like learning any other skill. Driving, using power tools or cooking a fine dinner demands a certain amount of knowledge.
We use such skills and accept a certain degree of risk in each activity. That contributes to our enjoyment and improves our lives.
Knowing and using investing knowledge can also make your life better. Learning how to do it well produces returns considerably beyond inflation and opens doors to the possibility of much greater and more profitable returns.
As risk rises from low to high, successful execution demands that you have greater knowledge, spend more time and make more effort. Combinations of greater knowledge and effort can produce considerably higher returns.
Pick your way
The huge range of possibilities present investors with many choices.
You can pick low risk. By devoting a low to moderate amount of time and effort you can enjoy solid positive returns.
At minimal effort, even beginners can learn if their investments are producing reasonable returns.
As your knowledge grows you will be able to see and understand more opportunities. Some opportunities at reasonable risk make possible significantly greater returns.
With knowledge you can learn to recognize opportunities for greater returns. You can also learn ways to keep costs as low as possible. Most often the fastest way to higher returns are through lower costs.
Future blog discussions will give you ways to look for and find both opportunity for gains and lower costs.
Acquiring more knowledge and devoting more time and effort can very significantly outperform the results of index investing. However, no amount of knowledge or effort will change what the market does. The market itself is superior to all strategies.
To enjoy the greatest possible returns we must learn how to listen to the market. Once we know what the market says, we can confidently apply the most favorable approach to making profits.
Why this lesson matters
Knowing basic money making strategies helps investors understand their many investing options. Income, value, growth, trading and speculation can be used singly or together. Each investor can tailor their choices to deliver the best result to build financial security and retirement comfort.
Takeaways from lesson 8, 5 Money making strategies, includes:
Use 5 Money making investment strategies, income, value, growth trading and speculation to build wealth. Financial security and retirement comfort comes with investing success.
- Risk acceptance is part of investing.
- Managing risk is critical to investing success.
- Knowledge open doors to better returns and more wealth.
- Investing choices give knowledgeable investors many options.
- Learning to listen to the market can improve returns.
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Comments and questions welcome
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Make money work for you
Use White Top Investor lessons to learn investing. Then, grow into a knowledgeable, comfortable and confident investor. In fact, you can learn investing one small step at a time at your own pace. Do that and become the master of your financial security and independence. White top Investor never sells or shares our email list. Learn more.
Course Links, Money strategies, lessons:
Introduction to Money Strategies – Planning & Managing Wealth
Lesson 1
Investors and traders ride growth
Lesson 2
8 Big money matters
Lesson 3
Nelson Mandela touched investors
Lesson 4
Market time grows money
Lesson 5
Stock market dip opportunities
Lesson 6
Investing strategies taking profits
Lesson 7
5 Money making strategies
Lesson 8
Investors can deposit and WAIT!
Lesson 9
Change moves markets forward
Lesson 10
ETF Revolution changes investing
Lesson 11
Benjamin Graham market mix
Lesson 12
Next lesson 9
Investors can make your retirement deposit and WAIT! Meet deposit deadlines to collect tax deductions but don’t put a deadline on doing your investing research.
Have a prosperous investor day!
Bryan
White Top Investor
[email protected] WhiteTopInvestor.com
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