If you feel like you've never had time to really delve into the tangled web of market investing philosophies, this is the article for you. I'm going to break investing down into 7 modern methods, and rate them on a risk scale from low to idiotic. (I promise, you are going to sound wicked smaht at your next social affair.)
Risk Score: High The Motley Fool is essentially a stock advisory service. They started out as a newsletter (like one you would get in the mail!), that would give you stock recommendations. Now they have grown into a full service money management firm.
The Motley Fool Method – 20 to 30 Individual Stock
Risk Score: High to High/Medium FI/RE people (often) will tell you that you need to just invest your savings in the total US stock market. Yeah. All of it.
Risk Score: Can range from High/Medium to Medium/Low Some of you may have heard the term “Bogleheads.” These are people that subscribe to the basic investing philosophy of John Bogle, founder of the well known financial firm, Vanguard.
The Dividend Method – Cash Flow and (Hopeful) Appreciation Through Dividend Stock
Risk Factor: Can range from High/Medium to Medium The difference is that these stocks would not be “growth stocks.” They would be very mature companies often referred to as “Blue Chip Stocks” (like Coca Cola and AT&T).