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Friday, August 13, 2010

How Much To Invest?

How much to invest will depend upon how much you have saved.There is conservative method of up to 20% of your savings may be invested then there is the more agressive of up to more than 50% of your savings.the more aggressive method was taken from the formula of 100- Age = Max% of savings that can be invested? Lets say i'm 45 now, my maximum % of saving would 55%.However these
are only suggested percentages based on investors' capacity to take on risk.As a rule of thumb,younger investor can take more risk given that they may have longer period to withstand the market volatility

Another conservative approach is to keep at least 75% of your savings in short to medium fixed income instruments and then the balance of 25% can be set aside for your investment in stocks

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