Investing for Dummies, 4th UK Edition

Chapter 1

First Steps on the Money Trail

In This Chapter

Understanding basic investment philosophy

Discovering your own money make-up

Looking at where you may be investing already (whether you know it or not)

Getting familiar with five basic investment choices

This chapter explains the first steps you must take in your investing ventures. But take heed: in this chapter (and throughout the book, for that matter) you need to think deeply about some personal matters, to understand yourself better and know where you’re going in your life and what makes you tick. In other words, you need to wear two hats – that of investor and that of self-examining philosopher. So be prepared for some tests that ask just what sort of person you are, what you want for yourself (and those around you) and what you’re prepared to do for it.

And if you don’t run into a test, such as a risk profile from a financial adviser, that’s no bar to testing yourself. Many ‘risk profiler tools’ online can help, but no matter how you go forward, the final decisions you make are down to you and no one else.

Understanding ...