What Type of Investor Are You?

Can you tolerate stock market fluctuations? How are your assets invested? Typically, there are five investment risk categories or styles - conservative, conservative to moderate, moderate, moderately aggressive amd aggressive. Each category is driven by the individual's objective which simply means, what do you want your money to do for you?

You are a conservative investor if your objective is to preserve the amount of your investment, referred to as the principal or cost basis. Investors in this category want their money to grow in a vehicle that pays a fixed rate where the principal and interest are guaranteed. The investment vehicles in this category are savings accounts, money market accounts, money market funds and certificates of deposit (CDs).

Knowing your objective will determine the investment options for you to consider and there are many. There are three major asset classes- stocks, bonds and cash or cash equivalents. There are lower risk investments, investments with higher returns, tax-advantaged vehicles that can be tax-free, tax-exempt or tax-deferred and annuities.  Destination Points- A Values Driven Journey, now available at Amazon, Barnes&Noble and http://www.viacompass.com/ gives you a working knowledge on all of these topics.

Next post: The Conservative to Moderate Investor


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