Chapter 3

Investment Outcomes

Why invest?

‘In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.’

Peter Lynch

Whilst in the previous chapter we covered savings, in this chapter we move to investing. Saving means putting your money in cash products, like deposit accounts. Investing means buying things that may increase in value, such as stocks and property. Generally, investing is riskier than saving, but we will see how to control risk and what risk level is appropriate for you. Following the four-step investment management process, Chapters 3, 4 and 5 will help you to establish your investing objectives.

When beginning saving ...

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