PART
3

Where to Invest

Stocks, bonds, mutual funds, and alternative investments have different risk characteristics, different ways of being selected and monitored, and even different ways of being purchased and owned. With some, you may do research once and own them for a very long time. With others, you may need to reevaluate from time to time, keep up to date with the trend of the company, and buy and sell at what seem to be opportune moments.

In this part, we’ll look at opening appropriate accounts, deciding if the investment is right for you, and the advantages and pitfalls of each type of investment. We’ll consider which investments are more time intensive to buy and monitor, which require the most study and research on your part, and what level of risk and reward they offer. You’ll learn how to judge a potential investment, and understand how to evaluate whether it’s the good deal you’re seeking.