Investment Triangle

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Investment Triangle
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Investment Triangle
The ideal investment would provide all it would
be completely safe, it would provide you with a
sufficient level of income to keep pace with
inflation AND your principal would grow.
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Portfolio Mix

• Investing basics the perfect investment would be
  safe, provide income and grow. Unfortunately, it
  doesn't exist.
• Instead you have to understand investing basics
  so you can combine investments (which is called
  building a portfolio) to achieve the right
  combination of safety, income and growth

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Portfolio Mix

• The first step to investing is to determine which
  of the following results are most important to
  you
• Safety - How much risk are you willing to
  take??
• Income - Do you need money from your investment
  now? Or want to reinvest it?
• Growth - How much to do want your investment to
  grow to??

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Investment Triangle

• As you move toward one corner of the triangle you
  move away from the other two. If you want an
  investment that is safe, you have to be willing
  to accept less income and growth.
• If you want an investment that produces
  consistent income, you have to understand that it
  will not grow as much.

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Investment Triangle

• Consider stable companies like GE, ATT,
  Walgreens vs. technology companies like apple,
  facebook, and Groupon
• When you're talking about investment risk, what
  do terms like "low risk" "medium risk" or "high
  risk" really mean? The question you need to
  answer is, "Can I lose my money?"