Post
Topic
Board Economics
Re: Is it better to save money or invest it?
by
lucasjkr
on 27/03/2015, 15:07:20 UTC
One of the better ways to invest money is to buy an ETF it is a bunch of stocks that you own a part of. They generally have a track record of growing 10% a year and they are considered safe investments.

Everyone is giving advice without asking the most basic question of risk tolerance and time horizon.

Yes, sticks have historically returned an average of 10% per year. But not at a predictable rate in the short term. You might be up 5% one year, flat another, down 15% the next and then up 40% the year following. Long term, equities have been a great investment, but the shorter your time horizon the less "safe" they become. Just as with Bitcoin, you can't buy 10 shares of an ETF and have any assurance that you'll recurve the same value for it in 10 days time.