In order for me to achieve my next goal, I cannot rely on interest earned on saving accounts, certified deposits, or money markets, since the economic crisis from 2008. Because of the crisis, the interest rates earned on banking accounts have fallen and are currently very low. Similar to the low interest earned on savings accounts, interest rates on mortgages have also reached the lowest rates seen in years, making now the perfect time to purchase a property or take a loan.
In my portfolio, I will mainly keep value securities, which theoretically are safer than growth stocks. I plan on focusing on value securities with good dividend yields as long-term securities and have a few of growth securities as short-term. As a young investor, I plan on following some of Warren Buffet’s steps.