Investing
I’m almost exactly two years out of University and have been working just over 1.5 years full time. Up until just a couple of months ago, I’ve never really thought about investing money. My simple thoughts on investing were to stuff cash in a relatively high yield savings account and make monthly contributions to my retirement plan.
Having too much of your assets in cash, however, is too conservative and the interest rate on the account barely beats inflation. Another form of investing that has higher risk, but higher possible returns is the stock market. The term ‘stock market’ brings to my mind a couple of thoughts:
- A bunch of highly paid, well dressed professionals yelling at each other
- Gambling
- Success stories of individuals winning big
With the reading I have done lately, I plan to explain why I have found that actively managing your portfolio by picking stocks or buying mutual funds that are actively managed is not the smart long term approach to investing your money. I hope that my future posts will be helpful for those of you in a similar situation to me.
