The Pros and Cons of Being a Conservative Investor

Most people who are ready to invest money are inclined to start small and then, when positive returns begin to appear, increase their investment a little at a time. A conservative investor would not invest more than they can afford to lose. This means that if the investment were totally lost the investor and his/her family would suffer no financial hardship.

Some banks have special accounts that pay more interest than regular accounts but are not as accessible to you. This pays small but it is wonderful that it pays something on whatever balance is in the account.

One of the other advantages of investing small and planning on doing some work to bring in more of an investment is that you feel as if you are doing something towards the future of your income. Most of are used to trading hours for dollars so that would make good sense to us.

I have been totally fascinated by the numbers of certain fast food chains that are in parts of Canada and in the United States as well. One of the founders of one of these chains was questioned as to why he and his partner continued to open more and more restaurants. He replied to the reporter, ” It would be no fun to just open a few and allow them to become wealthy. We like to take the chance on the prosperity of more and more restaurants.”

His idea seemed to be that the thrill of investing more and more money time and resources fed some inner need to take a chance. Most of us would like to do what they did, but we are too frightened to lose everything and then be so poor it would be terrible. I wish them total good luck.

Those who invest larger amounts receive larger interest and larger returns on their investments. The amount that some of these people could lose is so high that it would likely keep a small country going for several years!

I am from Northern Ontario so am very familiar with huge amounts of money being lost in a heartbeat. In past times there was no sure way to tell how much gold was beneath the earth and stone that was on the surface. My Grandfather was a prospector and made a very good living. He was investing work for dollars if you like but he received a percentage of the money made by stockholders as well.

I don’t have his nerve for taking a huge chance.

If you wish to invest huge, please consider that it could all we lost. Investing small would continue to pay small but there would be some returns.



Source by Joan O McGregor

Leave a Comment

0 Shares
+1
Tweet
Share
Pin
Share