When I move to college, I realize that I only need a bike, so I sell my truck and gain $10,000 to invest where I want I decide to put $3,000 in a Traditional Bank account, $3,000 in a Treasury Bond, and $4,000 in Stocks. I made sure to diversify my investments between high and low risk investments so that I am able to balance out my chances of getting a positive return on my investments. I chose to put $3,000 in a Traditional Savings Account because this is a low risk account that I can access quickly if I need the money for an emergency, but it will still earn me some interest on my investment. The other $3,000 amount I set aside to put into a Treasury Bond so that I have a safe investment that I know will occur a steady amount of interest no matter the volatility of the markets.
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The last part of the $10,000 I have to invest, $4,000, I put into the Stock Market. I did this to get a hopefully high rate of return, even though this option is a high risk investment. I put $4,000 into the Stock Market because the other $6,000 that I invested went into fairly low risk but low return situations, and I wanted to be able to gain a larger amount from the money I had to invest. My choices reflect that my tolerance for risk is moderate, because I spread out my investments into both low and high risk options. I was willing to gamble in the Stock Market, but also wanted to have a cushion of knowing exactly how much I was going to get back from in my US Treasury Bond after a set amount of time. The savings account I set up so that I could access the money if need be, and have a very low risk option besides the risk of identity
The last part of the $10,000 I have to invest, $4,000, I put into the Stock Market. I did this to get a hopefully high rate of return, even though this option is a high risk investment. I put $4,000 into the Stock Market because the other $6,000 that I invested went into fairly low risk but low return situations, and I wanted to be able to gain a larger amount from the money I had to invest. My choices reflect that my tolerance for risk is moderate, because I spread out my investments into both low and high risk options. I was willing to gamble in the Stock Market, but also wanted to have a cushion of knowing exactly how much I was going to get back from in my US Treasury Bond after a set amount of time. The savings account I set up so that I could access the money if need be, and have a very low risk option besides the risk of identity