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Getting Started in Investing
From: The New York Public Library
| By:
Karen C. Altfest |
EDITOR'S INTRODUCTION |
In a roller-coaster market, how does the first-time investor know when to get in the game, and when to get out? Where is the best place to turn for advice?
Karen Altfest (right), vice-president of a successful financial planning and investment management firm in New York City, helps the personal investor distinguish between various investment opportunities. At this talk at The New York Public Library's Science, Industry, and Business Library, Altfest discusses different investment strategies, mutual fund and fund manager research, risk tolerance and approaches to long-term financial planning. |
Karen Altfest provides helpful tips to the first-time personal investor. In her talk, she discusses the six aspects of financial planning. She also helps listeners assess their own risk tolerance profiles using the questions posed below. |
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| There are several elements to consider when planning your financial future. | |
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Discover your risk tolerance
Which statements best describe you? |
1. Investment decisions
a) I will invest only when I'm guaranteed not to lose money.
b) I think investing is like gambling and I love to gamble.
c) I don't care what happens to my money as long as it's available when I need it down the road. |
2. Willingness to change
a) I don't like making changes in my job or in my personal life.
b) I like to try many different things personally and professionally.
c) I'm open to new situations if there is a good reason to try them. |
3. Taste for adventure
a) I usually go to the same restaurant when I go out.
b) I like to try every restaurant that opens in my neighborhood.
c) I have a few favorite restaurants that I go back to often. |
4. Decision-making techniques
a) I like to hear everyone's opinion before I make a decision.
b) When I have an important decision I make up my mind quickly without help from anyone else.
c) I listen to other people's opinions, weigh and measure the possibilities, then I make up my own mind. |
5. Looking toward the future
a) I am pessimistic about the future.
b) I am optimistic about the future.
c) I enjoy living in the present, but I have an eye on the future. |
6. Timing of financial decisions
a) I delay making financial decisions because I am unsure of the outcome.
b) I make financial decisions promptly and confidently.
c) I make financial decisions after I've gathered information and feel comfortable with my decision. |
If you answered mostly A's, you are likely to be a more conservative investor. If you answered mostly B's, you are likely to be a more aggressive investor. If you answered mostly C's, you are likely a middle-of-the-road risk-taker. |
Quiz: copyright L.J. Altfest & Co., Inc. 2001 (Note: This quiz has not been tested scientifically, and is intended only to give you something to think about.) |
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