http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/ Bridging the gap between saving money and investing Sat, 05 Jul 2008 03:02:30 +0000 http://wordpress.org/?v=2.3.2 http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52911 mas Thu, 31 May 2007 19:25:28 +0000 http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52911 Also keep in mind that all investments into stocks are long time unflexible investments. Good yielding ones on the long run, unless your very unlucky, but still inflexible. A diverse investment structure that stands on more than one leg and has also elements that are more flexible may be less yielding for the lucky investor but it will be much more sound in turbulent times. And keep in mind that theres never a guarantee that our world will stay so relatively calm as it has been the last 30-40 year. We all got very accustomed to it but my 94 year old grandma can tell you different stories. Also keep in mind that all investments into stocks are long time unflexible investments. Good yielding ones on the long run, unless your very unlucky, but still inflexible.
A diverse investment structure that stands on more than one leg and has also elements that are more flexible may be less yielding for the lucky investor but it will be much more sound in turbulent times. And keep in mind that theres never a guarantee that our world will stay so relatively calm as it has been the last 30-40 year. We all got very accustomed to it but my 94 year old grandma can tell you different stories.

]]> http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52910 mas Thu, 31 May 2007 19:21:06 +0000 http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52910 Your perfectly right that investing in long time stock market is much less critical and more rewarding for young investors than for old investors. Nevertheless the golden rule to not invest lend money is an important one, simply because live doesnt always run smooth. And should live run more "unsmooth" than anticipated at the wrong time, e.g. when your assets are down and while your mortgage is still humming, then you could end up loosing a lot. If your willing to take the gamble then its fine but one should be aware of it. Mortgage interest rates tend to be much higher than the normal interest you get and they can increase a lot in the wrong moment so reducing them is always a good investment in terms of a diverse investment. Your perfectly right that investing in long time stock market is much less critical and more rewarding for young investors than for old investors.
Nevertheless the golden rule to not invest lend money is an important one, simply because live doesnt always run smooth. And should live run more “unsmooth” than anticipated at the wrong time, e.g. when your assets are down and while your mortgage is still humming, then you could end up loosing a lot.
If your willing to take the gamble then its fine but one should be aware of it.
Mortgage interest rates tend to be much higher than the normal interest you get and they can increase a lot in the wrong moment so reducing them is always a good investment in terms of a diverse investment.

]]> http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52137 Around the PF Blogosphere: May 29, 2007 | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Wed, 30 May 2007 02:53:55 +0000 http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52137 [...] Finance Advice says being young changes all the (financial) rules. When you have time on your side, you can afford to try and make [...] […] Finance Advice says being young changes all the (financial) rules. When you have time on your side, you can afford to try and make […]

]]> http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52073 Asset Allocation In Your 20s: How Should You Invest? | Online Savings Blog Tue, 29 May 2007 22:42:58 +0000 http://www.pfadvice.com/2007/05/29/being-young-changes-all-the-financial-rules/#comment-52073 [...] Personal Finance Advice has a look today at how young investors and savers should approach financial advice that may or may not be geared toward them: As with any financial advice you have to think critically about how it applies to your particular situation. Just take note that when you are in your 20s and trying to formulate a financial plan, don’t get too caught up in some of these discussions dominated by 30 and 40-year-olds. [...] […] Personal Finance Advice has a look today at how young investors and savers should approach financial advice that may or may not be geared toward them: As with any financial advice you have to think critically about how it applies to your particular situation. Just take note that when you are in your 20s and trying to formulate a financial plan, don’t get too caught up in some of these discussions dominated by 30 and 40-year-olds. […]

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