The world of investing can be a confusing one. Stocks, bonds, mutual funds, futures and options to name just a few. So what about the average person that just wants to put their financial future on auto pilot. Many of us like to live life without worrying about juggling investments. This is exactly what we will discuss in this short article. We need to conceive a plan that we can live with, that will create some fairly nice returns, and still let us sleep at night. This can be summed up in one word. Diversification.

Lets face facts, we all want to earn a little more on our money than the 1 or 2 percent returns from a savings account. We also want to protect ourselves from the risk of a down market. This is where having a mixture or diverse portfolio comes in. I am suggesting investing in funds [index are best, no sales charges] because the point is not having to trade or constantly work with your investments. What we would like to do is set up a diverse mixture of funds from aggressive to extremely safe. We would also like to invest in various types of funds as to spread out what we are invested in. Whether you invest through your 401k, IRA, or an online account, the point is just do it. Years from now you will be happy that you did.

Now it is time to determine how much goes to which funds. First off, you should consider your age. The younger you are means you can be more aggressive. This is fine, but we want to play it on the slightly conservative side. Lets use a formula that anyone between the ages of 21 and 50 can use. Unless of course you are entering retirement and being extremely careful with your money. On a weekly or monthly basis deposit 20% in an aggressive stock fund, deposit 20% in an emerging market (China) fund, deposit 20% in an index (S@P 500) fund, deposit 20% in a safe mix stock and bond fund, and the final 20% in an ultra conservative money market account. This formula has worked fine for me and you do not get hurt too bad in a down market.

Please remember the suggestion above is just that. Always do your own research and invest your money wisely. Always try to invest the same amount or more each week and you can look forward to a fiscally sound retirement. Morningstar is a great way to research funds. They use an excellent system to rank funds, which should give you a good idea where to put your money. Good Luck and Happy Returns. If you think that funds is not the best investment option for you, you may also consider investing in real estate properties. Haus kaufen kfelred is one of the best ways to invest in real estate. This will surely provide you great returns in the future.

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Konstantinos Reed is a charismatic young writer and an aspiring poet. He also loves to go on long drives in his Nissan as well. He also wishes to publish his own poetry book someday.

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