Investing

I will tell you something about what you should know about investing. There are three basic elements in investing:
• First you must make a contract.
• The second rule is that you diversify your savings in different types of targets.
• The third rule is that you must invest a little at a time. (Simola 2014, 6-8.)

Picture by: 401(K) 2012 (Wikimedia commons)

Picture by: 401(K) 2012 (Wikimedia commons)

Four basic types of households in making financial decisions:

• Saving decisions: how much of the current income is saved for the future?
• Investment decisions: how to invest the saved money?
• The financial plan: when and how they should use other people´s resources to satisfy their own needs?
• Risk management decisions: how and under what conditions they reduce the economic uncertainty or take a controlled risk? (Knüpfer & Puttonen 2012.)

Picture by: 401(K) 2012 (Wikimedia commons)

Picture by: 401(K) 2012 (Wikimedia commons)

How to recognize the investor´s risk tolerance?

Below you can see a table ofM different investors. I will introduce four basic types of investors to you. You can see where you could belong to, and get some information on your risk tolerance.

Taulukko1

(Kallunki, Martikainen & Niemelä 2011, 32-33.)

Financial instruments market

The following table shows the distribution investment of resources to various targets in 2005 and 2010. (figures in EUR billion)

Taulukko2

(Niskanen & Niskanen 2013, 23.)

 

Sources

Simola, Ulla 2014. Veronmaksajan taloustaito. Viisaan säästäjän palapeli. (11.6.2014), 6-8. Luettu 7.10.2014.

Knüpfer, Samuli & Puttonen, Vesa 2012. Moderni rahoitus. 6th ed. Helsinki: Sanoma Pro Oy. 48-49. Luettu 7.10.2014.

Kallunki, Juha-Pekka, Martikainen, Minna & Niemelä, Jaakko 2011. Ammattimainen sijoittaminen. 7th ed. Vantaa: Hansaprint Oy. 32-33. Luettu: 7.10.2014.

Niskanen, Jyrki & Niskanen, Mervi 2013. Yritysrahoitus. 7th ed. Porvoo: Edita Publishing Oy. 23. Luettu: 7.10.2014.

401(K) 2012. Saving money. Wikimedia commond. Luettu: 26.11.2014.

401(K) 2012. Investing money. Wikimedia commond. Luettu: 26.11.2014.

Advertisements
This entry was posted in Investing. Bookmark the permalink.

3 Responses to Investing

  1. student_J says:

    This is a intresting post and it’s nice to read because of the pictures.

  2. riistokapitalismiisbest says:

    All in six miilion.

  3. budgetingmoney12 says:

    Clear and well written.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s