By Robert Gonzalez
What are Investment Risks?
Investment Risks are the uncertainties and dangers that come with investing in certain aspects of business. There different types of investment risks, business risk, volatility risk, inflation risk, interest rate isk, and liquidity risk. While these are just a few examples there are many more types of investments that people can participate in.
How do I avoid these risks?
The size of these risks are dependent on the amount of return your investment will give you. As shown here the more return you’re expecting to receive the higher risks that are gained with said investments. The way you can avoid having dramatic risk is by starting small when first investing. This means that before you blow all of your money investing it is smart to start with an easier and more safe type of investment such as a savings bond; a savings bond is one of, if not the most, safe type of investment because it is usually backed by the government.
How do I invest?
Depending on the type of investment you want to invest in it can be simple. To start with a simple investment, a savings bond, all you need is your IRS tax refund and you can use it to check whether or not you want to buy a savings bond with your refund. A more complicated and involved process is stock investment. To invest in stocks you need a brokerage account, put money in the account, decide how much stock you want to purchase, and your done; although, this is simplified for reader´s ease.
Sources:
https://www.investor.gov/introduction-investing/basics/what-risk
https://www.treasurydirect.gov/indiv/planning/plan_gifts.htm
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