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There are higher-yielding investments out there, don’t settle for a low return on your investment.Only 33% of money managers outperform the market.Passive Investment is the best way for most investors
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The Basics of Oil&GasInvesting: Know what to do with your money or what others are doing with your money!
Investment Terms to Know • Investment: The commitment of funds to one or more assets that will be held over some future time period • Risk: The chance that the actual return will be different from the expected return • Passive Investment Strategy: A strategy that determines initial investment proportions and assets and makes few changes over time • Active Investment Strategy: A strategy that seeks to change investment proportions and/or assets in the belief that profits can be made
More Terms to Know • Direct Investing: Investors buy and sell securities themselves, typically through brokerage accounts. • Indirect Investing: The buying and selling of the shares of investment companies, which, in turn, hold portfolios of securities
Why Should I Invest? • Retirement: Investment in the long-term which means you can ride the market • Large Purchases (House): Invest in safer securities (Short-term) • School: Invest in safer securities, the sure investments
What Can I Invest In? • Money Market Securities: • Treasury Bill • Negotiable CDs • Fixed-Income Securities: • Bonds • Asset-Backed Securities • Equity Securities: • Stocks • Derivative Securities: • Options • Future Contracts
Diversification is KEY • Diversification is the key to the management of portfolio risk because it allows investors to significantly lower portfolio risk without adversely affecting return! • International diversification is important • A portfolio with 40 different stocks is said to be adequately diversified
Investing Tips • USE 401K • Flee the Bank – There are higher yielding investments out there, don’t settle for a low return on your investment • Buy low expense Mutual Funds – Don’t pay too many fees • Buy and hold – Avoid high commission fees and higher taxes
IMPORTANT INVESTING FACTS TO KNOW • Only 33% of money managers outperform the market! • Historically Stocks return 11%, Bonds 5% • Passive Investment is the best way for most investors
Michael Bowen Oil and Gas • Subscribe us in following links : • https://www.linkedin.com/in/michael-bowen-0409b757 • https://www.youtube.com/watch?v=MaijCCL7VyE • https://medium.com/@Michael42402025/https-michaelbowenoilandgas-wordpress-co... Thanks