Economists talk about saving and investing as two separate steps. After an individual has saved some money, it’s time to decide on investments.
Describe an investment that you or someone else could make. What are the advantages of this investment? What are the disadvantages? What types of information would you review or who would you consult to help inform your decision about this investment?
Example of an investment: Deciding to enroll in your employer’s 401K plan.
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