10 Terms To Know If You Want To Invest Like A Pro
So you want to start investing your money in the market. Congratulations! Investing puts your money to work for you and offers the potential to make it grow. But where do you even start?
We’ve consulted with one of the country’s leading personal financial experts, Carrie Schwab-Pomerantz CFP®, and she knows how you might be feeling. “Investing can seem extremely overwhelming at first,” she says. “However, I believe it's one of the best ways to build your financial security.”
Before you take advantage of the many benefits of investing, there are some terms that you should know so you don’t sound like a total n00b.
1. RISK
When you invest your money in the market, it always involves risk — meaning, there’s no guarantee that your money will grow, and that you won’t lose some of it. There’s always a trade-off between risk and return. Different types of investments have different levels and types of risk, but there are things you can do to manage risks and set yourself up for success. Before putting any of your money on the line, the important thing to ask yourself is: How much can I afford to lose, if my investment doesn’t pan out the way I want it to?
