Assuming you got lots of money,would you "save" it and relax,or "invest" it and worry ?

Answer 1

Who says you have to worry if you invest it?

there are many options that are VERY low risk that will allow you to gain a return.

In the U.S., there are C.D.s, these provide a low return, but they asre insured up to 100,000 by the federal Gov't

There are also government bonds. For all intents and purposes, these are risk free, if the alternative is just stuffing ti under your matress. If you holdthem to maturity, you are guaranteed to get your money back.

While there is interest rate risk and inflation risk, these are both risks you face shoving under the matress, so they can be ignored.

The only way you will lose moeny, if held to maturity, is if the government defaults its debt. But if this happens, your money is worthless anyway, so either way you are screwed.

So, why not invest in something safe, get a return (even a low one), relax, and not worry.

Answer 2

Like when your teenage daughter fails to come home on time, you worry because you don't have enough information to "know" what will happen. You go through all of the possible outcomes, but because of a lack of information and being uninformed, they are all left up in the air and equally unpalatable except for the one outcome you "wish" and "hope" for.

But with investing, just a little foreknowldge and information can make all of the possible outcomes known. It takes some hard work and learning, but better than being the anxious parent, hoping and praying and wishing for your daughter to come home.

If you do your work, evaluate the risk, identify entry and exit at support and resistance levels or use whatever signal generator you are comfortable using, and apply good money management techniques, then you've done all you can do, and no amount of worrying or "hope" or "wishing" will change the outcome. You know what yours risks are and how much you can lose, and your profit is open-ended.

This is why mutual funds (mf) and investment advisors managing your money doesn't make any sense to me. You are the anxious parent, waiting for an unknown outcome without any control over your own future. You can do the same thing a MF can do by buying Index ETF's. But you can also take profits off the table, add Protective Stops to limit your risk, and stay out when risk becomes unpalatable. You can also bet on the downside of the market (short), whereas a MF cannot. A MF is always "in" the market (long), exposing you to enormous risk and "worry."

You cannot avoid or escape risk. You can put your money under your mattress, and inflation will eat at it, or the rats will, or there might be a fire, or a robber may take it. But you can manage risk, if you invest it properly. This presuposes you have foreknowledge.

Most people seem to choose ignorance over knowledge, and want someone else to take responsibility and provide solutions for all their problems. And then we ask silly questions like "would you relax, or would you worry?"

Answer 3

This is not an either/or situation.

You could save it and worry because inflation is eating up your returns.

With the right investments, you can invest and relax.

First, you need to determine your tolerance for risk. If your tolerance for risk is low, you should invest in things such as savings bonds. If your tolerance is high, then invest in aggressive growth stocks.

If you are retired and need regular income, there are many safe and secure dividend-paying stocks to invest in.

Regardless, you should only invest in things that don't disturb your sleep. If it keeps you up at night, it's the wrong investment for you.

Answer 4

There is a good compromise with your question. You can invest it and relax. It is better to earn interest on your money rather than have it sit. Consult a financial advisor and have them choose some low-risk mutual funds, bonds, and annuities so that you can have your money work for you, and relax at the same time!

Answer 5

Invest it in Income Trusts that give out 10-20% dividend yields, with money paid out monthly and relax.

Answer 6

"YOU CANNOT DISCOVER NEW OCEANS UNLESS YOU HAVE THE COURAGE TO LOSE SIGHT OF THE SHORE, BECAUSE ONLY THOSE WHO RISK COULD TELL HOW FAR THEY COULD GO "

INVESTING IS A NEVER ENDING CHALLENGE, LEARNING AND ADVENTURE.

Maritess tan
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