Investing is about putting your money to work. If you do it wisely, you have
 the potential to increase your principal, or the amount you’ve invested, over time. The money your investments produce can mean the difference between meeting your financial goals and settling for what you can afford. But investing isn’t the same as saving. When you save, you’re putting money in a safe place to earn interest—a bank account, for example. That’s fine
 for building an emergency fund or accumulating money for short-term goals. But your principal won’t grow much faster than the rate of inflation, or the gradual increase in the prices of goods and services. That can leave you short on buying power. While there are always risks with investing, there is the expectation that over time you’ll beat inflation by a wide enough margin to achieve your financial goals. But nevertheless, you could lose all your money, so be advised you need to develop a financial profile that includes a risk tolerance test. Know thyself. “To Thine Own Self Be True.” If investing seems like an alien experience, try an experiment. Buy an index fund that tracks a broad segment of
the stock market or a   Read more…