Best ways to invest money Can a beginner at investing invest easily and safely without sacrificing profits?Absolutely. If you're like me, you worked hard for your money the first time and don't wish to work hard for it again. I spend very little time managing my investments nowadays. I also have not lost any sleep during this latest downturn because I know my investment decisions are good. Instead of worrying about what's up, what's down, or what's all around, I spend my spare time doing the things I love - such as playing with my daughter. What I've eliminated is the constant boring studying of company balance sheets, earnings reports, key ratios, etc. Zzzzzz. I don't want a 2nd job. Do you? I'm not an accountant and I don't want to be one. As an investing beginner, going into that much detail is a long and hard path. I ignore the latest investing trends and fads. I don't care what industry is up or down. I don't care what product is selling like hotcakes. I'm too busy enjoying my life to think about these trivial things. I'll let others argue over what's hot. Studies have shown that the methods I use to invest will beat those people most of the time anyway. I've read many books on investing and done a lot of research over the years. I've spent hundreds of hours and hundreds of dollars on books searching for the best way to invest money. The results surprised me because anyone can do it. Actually, people with very little investing or business experience will probably do better because they will follow the plan consistently. I'm not promising that you'll double your money every year ("Guaranteed!"). Anybody who does that is lying or misinformed. The best investor in the world - Warren Buffett - has a 20%-30% compounded annual growth rate (not "average annual growth rate" -- see the investing basics section) depending on when you start his investing timeline. Even he wouldn't guarantee positive returns of 20% every year. Remember, he's the best investor in modern times and the richest man in the world! He also spends 60+ hours per week working on investing. If anyone guarantees you results anywhere near Warren Buffett's results, run, don't walk, run the other way. In fact, the basics to which I subscribe are the same as what Warren Buffett recommends to laymen investors. My way of investing is the best way to invest money for a beginner. In fact, I think its the best way to invest money for just about everyone. I can't and won't promise you that it will always beat everything out there over the short-term -- it won't. I can't and won't promise you that it will make you a millionaire over night -- it won't. I can and will promise you that it will be very simple and easy to implement. I can and will promise you that you will do better than most laypeople who try to be more active and buy individual stocks or other financial assets. Other advantages: I invest this way myself, so I put my money where my mouth is. Once I set this up, I spend 2 hours maximum per year managing it. It really is that easy. Not only is easy to maintain, but it is quick and easy to setup. You could have a good investing plan set up and ready to run automatically within a few hours. I no longer spend time worrying about my investments or checking the stock market regularly. It is highly diversified. It has a high level of negative asset correlation. In other words, the different assets within the plan tend to not move up or down together. As a result, your portfolio will be less risky to fluctuate less. You will automatically sell high and buy low in a simple way. Wall Street does not want you to follow my way because it will reduce their commissions and your costs -- giving you an immediate jump start over other investors. Now, I enjoy learning about investing and business, so spending all that time and money was not so terrible. But I recognize that most people won't want to spend 50 or more hours and a substantial amount of money looking for the best way to invest money.
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