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How to manage risk

This is an Invest Wisely minute brought to you by Iowa State University Extension.

Here are tips to help you invest wisely:

When you are setting investment goals, be sure you first have put away some secure funds in savings that are easily available for emergencies.

For long-term investment goals, you’ll need  to consider your comfort level with risk.  The higher the potential return on an investment, the higher the risk.

Diversification can help you minimize risk.  Mutual funds may be the way to go if you don’t have the time or knowledge to monitor or sufficient funds to diversify by purchasing individual stocks or bonds.

Invest Wisely comes from Iowa State University Extension through a grant from the Investor Protection Trust providing investor education on the web at investorprotection.org.

 

Investors

         
         

Updated May 28, 2008