7 Modern Methods for Investing in “The Market”

If you feel like you never have time to really delve into the tangled web of market investing philosophies, this is the article for you. I will break investing down into seven modern methods and rate them on a risk scale from low to idiotic.  So, why are we discussing investing philosophies specifically? What does this have to do with making your money work for you?

Well, let's look at some of the common terms and questions people search for regarding this topic:   – How to invest 100K  – How does investing work? – How to invest in the S&P 500  – Best way to invest 5K – How to invest 50K  – What investment carries the least risk? – How many stocks should I own?

7 Common Methods (or Philosophies) to Consider When Investing in “The Market”

The Motley Fool Method – 20 to 30 Individual Stock

The Motley Fool (TMF) is essentially a stock advisory service. They started out as a newsletter (like the one you would get in the mail) that would give you stock recommendations. Now they have grown into a full-service money management firm.

Risk Score: High 

The FI/RE method – 100% Stocks Via an Index ETF

In the book, he outlines why he thinks you should invest all of your money in a simple asset allocation of 25% US Stocks, 25% Bonds, 25% Gold, and 25% Cash. If you get off track, you rebalance back to these portions once per year.

Risk Score: High to High/Medium

The Boglehead Method – A Mix of Stocks and Bond

Bogle hypothesized that most money managers wouldn't beat the average market returns over time, so you should just invest in the market as a whole through index funds with low fees, instead of individual stocks or managed mutual funds.

Risk Score: Can range from High/Medium to Medium/Low

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