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Module 04 Investing: Money Working for You About the NEE High School Financial Planning Program Series By picking up this booklet, you are on your way to making your dreams come true and headed down
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The four phases of the investment cycle are: Plan Strategically. Assess, set and communicate sector priorities, and identify projects for implementation. Design Investment. Analyze context and alternatives and carry out detailed project design. Implement and Monitor. Evaluate and Capitalize.
It starts with these core principles: Invest a set amount of money regularly. Do so regardless of the swings in the market. Reinvest all earnings. Buy stock in high-quality growth companies. Diversify your portfolio.
Beginners investing tips Avoid lifestyle creep. Start investing — even a little at a time. Know what you're investing for. Understand the risk you are taking. Diversify your investments. Invest for the long-term. Watch out for high fees. Consider how much time you can put into investing.
An investment time horizon, or just time horizon, is the period of time one expects to hold an investment until they need the money back.
Are mutual funds guaranteed? Mutual funds are not guaranteed. They are subject to the same market risks as any other investment, and there is no guarantee that you will make money by investing in a mutual fund.
The difference between saving and investing Saving can also mean putting your money into products such as a bank time account (CD). Investing — using some of your money with the aim of helping to make it grow by buying assets that might increase in value, such as stocks, property or shares in a mutual fund.
The risk-return tradeoff states the higher the risk, the higher the reward—and vice versa. Using this principle, low levels of uncertainty (risk) are associated with low potential returns and high levels of uncertainty with high potential returns.

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