US Federal System Tel. No.: +1 202 391 0991

US Federal System at http://usfederalsystem.com

Investor Basics

Investing can be a daunting task. Rather than giving up or jumping in and making unnecessary mistakes, take a step back and develop a plan. Before deciding on your plan, learn the basics of investing which hopefully will alleviate some of the frustration and confusion that you may experience.

The best plan is to focus first on the overall process. Without an overall approach to guide you, it's easy to get lost in the details and never reach an end result.

As with any undertaking, it is best to start with the basic principles. The basic investment principles include an understanding of the relationship between risk and return and the various ways that risk can be reduced. Your tolerance for risk, your return needs (whether income or growth), the length of time you can remain invested, and your tax status all have an important impact on the kinds of investments you should be making, and the kinds of investments you should avoid.

Once these decisions are reached, you will be ready to make selections among the various investment options. Your selections can either be made by an outside adviser (for instance, by hiring a private investment adviser or a financial planner), by investing in mutual funds, or by doing it yourself through individual stock and bond selection.

In this section of our site, you'll learn about the power of compounding, the risk/return trade-off, diversification, and more.

United States Federal System
1090 Vermont Avenue NW Washington D.C. 20005
Website: http://www.usfederalsystem.com
Email: [email protected]
Tel. No.: +1 202 391 0991

Created 7th April 2015 for 1 year only and subsequently renewed for a further year