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Basic Rules of Investing
Learn the importance of developing an investment planPreview the first lesson free — get full access to all 7 lessons.
Essential Provider : Matthew Johnston 7 Lessons · 24m in Arabic, English, Spanish
Course Description
When creating an investment plan, it’s important that you set clear investment goals. Are you saving for that dreamy beachfront house? Perhaps you’re amassing funds for your child's college education or want to spend time traveling post-retirement. The specificity of your objectives will guide your investment maneuvers. If you're dreaming of a European getaway next summer, your investment strategy will differ from another, picturing a serene retirement three decades away. Understanding your appetite for risk is also important. Recognizing and respecting your boundaries is vital. If a mere 5% dip in your investment makes your heart race, you might not enjoy the world of high-risk stocks.
In Basic Rules of Investing, you will learn the importance of developing an investment plan, setting clear investment goals, and paying attention to investment fees. You will learn the terminology of investing and the common types of investments that you can make. You will learn the importance of having a diversified portfolio and rebalancing your portfolio when the risk level has increased beyond what you originally planned. You will also learn about common investment strategies and how tax planning can help you optimize your investment decisions and minimize your tax liability.
What You'll Learn
- Develop an investment plan with clear, specific investment goals
- Differentiate between common types of investments and their terminology
- Apply the principle of portfolio diversification and rebalance when risk increases
- Use common investment strategies to guide your decisions
- Understand the basics of investment-related taxes and tax planning
- Recognize the importance of paying attention to investment fees and your risk tolerance
Key Takeaways
- Setting clear, specific investment goals guides your investment decisions and strategy.
- Understanding your appetite for risk helps you choose investments within your comfort boundaries.
- Maintaining a diversified portfolio and rebalancing it when risk rises beyond your plan is important.
- Paying attention to investment fees is part of building an effective investment plan.
- Tax planning can help optimize investment decisions and minimize tax liability.
Frequently Asked Questions
What will I learn in Basic Rules of Investing?
You will learn the importance of developing an investment plan, setting clear investment goals, and paying attention to investment fees, along with investing terminology, common types of investments, portfolio diversification and rebalancing, common investment strategies, and investment tax basics.
What topics do the lessons cover?
The course covers Creating an Investment Plan, Exploring Common Types of Investments, Building and Managing a Balanced Portfolio, Common Investment Strategies, and Investment Tax Basics, plus an Introduction and a Test Your Knowledge section.
Why are clear investment goals important in this course?
The specificity of your objectives guides your investment maneuvers; for example, a strategy for a European getaway next summer will differ from one for a retirement three decades away.
How does the course address risk?
It teaches the importance of understanding your appetite for risk and respecting your boundaries, noting that if a 5% dip makes your heart race you might not enjoy high-risk stocks.
What skills does this course help build?
It supports skills in Investment Management, Investment Strategy, and Portfolio Management Professional.
