Both groups concentrate on stocks and bonds, but self - directed investors
choose riskier stock - bond allocations (70 % -22 %) compared to advised investors (50 % -42 %).
Not exact matches
Growth investors
choose stocks based on the potential for capital gains, not dividend income, so they can be
risky.
Lots of people make the mistake of thinking you need to
choose between all
risky assets (
stocks) or all safe investments (cash) but in actual fact you should pick a happy medium.
If someone convinced you that you could get AAA debt at a 10 % yield, why not
choose it over
risky investment in things like alternative energy small - cap
stocks?
Investors who want to invest in
riskier, more speculative assets, such as options or penny
stocks, may also
choose to use a taxable account instead.
Many people make the mistake of thinking you need to
choose between all
risky assets (
stocks) or all safe investments (cash).
Choosing the level of risk that you feel comfortable with is related to the rule above: if you are young, you can afford to invest in
riskier stocks.
Since an index fund spreads the risk amongst the
stocks in the
chosen index, it is less
risky than investing in individual
stocks.
This Simple Guide describes why
stock investing is
riskier than you probably think, then explains how to take control of your money and build wealth, without buying
stocks if you
choose, to help assure the sort of retirement you want.
I would NOT take a mortgage to invest in the
stock market (even tho I have done fairly well on
choosing stocks), it is just too
risky, nothing in the market is a sure thing, no matter what anyone says.