Moderator:
Have you always wanted to invest, but didn't know where to get started? We're here today inviting Prof. Robert from Elizabeth Institute of Finance and Economics to present you with some concepts and basic guidelines of investing for your future.
Prof Robert:
Hello, everyone. Investing is a way to make money with your money. (16) There are two main reasons why you should invest. The first is to stay ahead of inflation, and the second is to achieve financial goals. Inflation causes the increase of prices. You need to make more money just to keep up with the rising cost of living .Financial goals can be separated into two types: short-term goals and long-term goals. The first refers to the things that you need or want now or within the year, such as a bike, a computer, or a video game. Generally, it takes less money to reach these short-term goals. (17) However, long-term goals are expensive and require some planning. They are things,you need or want in a few years or more, for example, going to college, buying a house, and even starting a business.
Investing is like "planting" money. A small amount of money invested Will often grow to a larger sum over time.With investing, time also makes money. ( 18 ) Although investing can make money with money, the downside of investing is that there is a risk of losing your money.
The key to investing is to minimize the risk and to maximize the financial reward. And there are three basic guidelines on smart investing for your future. Number one is to have clear goals. Decide how many years you will invest for, and what your needs will be in the future. Number two is to understand the range of possibilities. You'll want a diversified portfolio: one with a mix of stocks, mutual funds, bonds, and cash. It's a jungle out there. Each of these products has different risks associated with them and also different potential rewards. Understand them before you buy, so there won't be any big surprises later. Finally, number three is to have realistic expectations. ( 19 - 1 ) As Leonardo da Vinci said in 1500, "He who wishes to be rich in a day will be hanged in year. " Over the past several years,” New York stocks have averaged 30% annual returns, but don't count on this continuing. While it's true that since 1900, stocks have averaged an 11% annual return, it's a roller-coaster ride with many minus years as well,(19 -2) so you have to stay in for the long term-you have to weather the storm-and not be too greedy. Well, let's
get started and happy hunting!
  Which of the following is NOT the reason why people should invest?