Investing 101
A crash course in building your personal portfolio
"For herein Fortune shows herself more kind than is her
custom; it is still her use To let wretched man outlive his wealth
To view with hollow eye and wrinkled brow An age of
poverty."
In The Merchant of Venice, Shakespeare aptly described
one reason we invest-so we don't outlive our wealth. (Note that
a person who is 65 today is expected to live to 84, if male, and
88, if female.) Without an investment plan that's sensitive to
both immediate and long-term goals, as well as to the level of risk
to be taken to achieve those goals, personal investment success
becomes difficult, if not impossible, to achieve.
Building wealth and protecting it from the effects of inflation
and taxes are two major investment objectives common to almost
every investor. Some are more successful than others in achieving
these goals. If your wealth isn't growing because taxes and
inflation are nibbling away at what you've accumulated, you
need to re-examine the ways you save and invest.
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In "Money Wise" (November 1995), we told you how to
determine your level of risk tolerance. This month, we give you an
overview of some of the many investment options that can help you
reach your goals.