Things Everyone Should Know
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There are three main types of investments: real estate (residential and commercial), collectibles (such as antiques, coins, jewelry, art work, baseball cards, and comic books), and securities. Real estate and collectibles are relatively illiquid.
The only liquid investment is securities. So, you want to invest in securities ...
There are three types of securities: stock, bonds and derivatives ...
All derivatives (futures, options, and all of their more complex relatives) come with the potential for devastating losses. This isn't where you want to invest your savings. As my ol’ Daddy used to say, “Don’t gamble unless you can afford to lose.” …
Both stock and bonds are viable investment vehicles ...
Over the long term, stock returns about twice as much as bonds. On the other hand, stock is more volatile than bonds ...
Whether your can handle such volatility in the value of your investments, where you can see your savings shrink by one half, I won't venture to say. All I can do is tell you about my own experience.
I retired in 1993 … At that time, my investments amounted to about $140,000 ...
Today (at the first quarter of 2015), my nest egg stands at about $797,000.
And each year, from 1993 until today, I withdrew between $10,000 and $25,000 from my savings to support my life style. So I've been able to live off of my savings without diminishing them, courtesy of the stock market.
The stock market is volatile, but if you can take the sickeningly dips in the value of your investments as the market gyrates through its roller coaster ride, the market can possibly be your friend.
Let's proceed on the idea that your investment strategy should be to concentrate on stocks. The question then is: What approach should you take to investing in stocks?
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About the Book
There are things that everyone should know that our educational system doesn’t cover well, if at all — things such as what knowledge is, ethics, how we make decisions, money, property, government, international relations, financial industry regulation, energy, employment, education, drug use, immigration, the concept of community, and how to manage your money. The purpose of this book is to try to rectify this situation.
About the Author
Tom Gildersleeve worked in computer programming during the large-scale computing era, before the advent of the personal computer. During his career, he wrote several books on the subject of computer programming that were published by houses such as Prentice-Hall and Wiley, books such as Data Processing Project Management and Data Processing System Design. He has also self-published two books on subjects that he finds of interest — History, An Interpretive Overview and We the People, Our Constitutional Rights. He lives in Norwalk, Connecticut. You can reach him at tomgildersleeve.com.