The Ultimate Investing Guide

Zoe Investment Guide

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Investing correctly can feel intimidating, after all, it’s your hard-earned savings on the line if something goes wrong. Our Investment Guide takes the guesswork out of investing, by giving you an inside look at investing versus saving, investing in the stock market versus bond market, and understanding how risk works. 

Investing helps your money grow. Regardless of if you’re investing in picked-stocks, ETFs, bonds, or any other investment vehicle – it’ll grow a little faster than if your money was just sitting in the bank and dependent on inflation. Inflation slowly erodes the purchasing power of your dollar, making everything from groceries to your car a little more expensive every passing year. 

Meanwhile, if you’ve saved consistently, there comes a point where your monthly contributions don’t make a dent enough of a dent in reaching your financial goals. By this point, it’s all about how you’ll grow your wealth through compounding. For example, if you’re saving $4,000 a month instead of $400,

The trick to investing is to have patience. In the short term the markets will go up and the markets will go down, but in the long run investing usually beats savings hands down. Download our guide to learn how managing your investments thoughtfully can yield higher rewards long term. 

The quick answer is risk and reward. Savings are safe but yield a low return. Investments are risky but have a potential higher return. Therefore, the more time you have the better. So the younger you start, the more time you have to allow your money to grow as an investment and benefit from the increased returns over the long term.

An investment portfolio is the mix of stocks, bonds, cash, commodities, and real estate that you own. It’s up to you to decide which assets will compose your portfolio, considering that each will have different risk and potential return. Stocks, for example, are volatile investments that offer potential long term higher returns and losses than cash and bonds. Cash, however, is much less volatile and thus offers much lower expected returns. 

Risk capacity is a measure of the magnitude of price declines your investments can take while still achieving your goals. Top financial advisors are particularly skilled at helping clients identify their risk capacity by stress testing possible future scenarios for both your income and your investments.

Risk tolerance is your willingness to be okay with the worst-case scenarios. In assessing your risk tolerance, imagine how much angst and stress you can manage when the portfolio value is down. If the stress of losses or volatility (price fluctuation) is too much for you to bear, it might be best to adjust your portfolio to reduce the volatility – even if your ability to take more risk is higher than your risk tolerance.

The Definitive Guide To Financial Planning

The Definitive Guide To Financial Planning

Our comprehensive guide covers everything you need to know about financial planning. We'll cover the definition of "financial planning", the required qualifications of fiduciary planners, the difference between brokers and planners, fee structures offered by planners, and finally- what makes a great planner?

The Definitive Guide To Financial Planning

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The Ultimate Guide To Emergency Funds

The Ultimate Guide To Emergency Funds

The Zoe Emergency Fund Guide includes an explanation of what an Emergency Fund is, and why you need one. We'll also dive into the characteristics of an emergency fund and a step-by-step process of how to set one up.

The Ultimate Guide To Emergency Funds

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