How to make informed investments

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Preparation is the name of the game. The Chicago Bulls would never have won six championships had it not been for the countless hours Michael Jordan spent in the gym all his life and the endless game planning he went through before every single game of his career. This kind of preparation, mixed with unnatural athletic ability, was the reason he reached the level of success he had. However, in the world of investment one does not need to possess any special natural talents or abilities. Key characteristics of a truly successful investor include knowledge and preparation. Even the most experienced and successful investors in the world today are looking for ways to improve on a daily basis. All the best investors are not only informed in which industry and when to invest, but they are also informed in what position they are at any given time and are aware of the best type of investment for them at that particular moment.

Continuously being aware of your financial position throughout all points of your investment career and knowing yourself as an investor inside and out is crucial in determining the level of risk you should take and when. If you are someone who is particularly interested in long-term investments that will provide a fairly moderate return on investment, then there are a multitude of options for you. We all know that with the always low interest rates we currently have, savings accounts are not an effective way to collect interest at all.

Personally, I believe that the two best long-term investments include certificates of deposit (CDs) as well as bonds. CDs are about as low risk as they come. These are especially nice because the FDIC provides them for $ 250,000, so as long as you diversify the CDs you bought, you’re 100 percent sure you’ll get the promised amount of money back. By that I mean when you buy a CD you need to open more of them and never let them reach $ 250,000 before maturity if you want to be 100 percent sure of receiving the promised amount of money on time. They typically range from a 6-month investment to a 30-year investment. The longer the maturity date, the higher the interest rate on that CD. The best way to ensure a solid return on investment, as well as a steady flow of CD income, would be to have many different ones with a range of maturities ranging from short-term to very long-term.

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