Investment Ideas

DEFINITION of 'Investment Ideas'

Specific views, plans or ideas on ways to invest money effectively. Investment ideas typically involve the expertise and advice of an investment advisor who recommends different investment tools based on individual circumstances.

BREAKING DOWN 'Investment Ideas'

One of the main factors determining what investment idea a particular investor will employ depends on that person's stage of life. Investors who are young can take on more risks, and an advisor will likely recommend stocks or mutual funds to younger investors. Investors who are approaching retirement, however, will most likely find it more beneficial to take on lower-risk, short-term investments such as bonds and T-bills. Another factor that affects investment ideas is the risk-return tradeoff. Each investor has his or her own sensitivity to risk, which will influence investment decisions.

RELATED TERMS
  1. Advisor

    1. The person or company responsible for making investments on ...
  2. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
  3. Investment Advice

    Any recommendation or guidance that attempts to educate, inform ...
  4. Registered Investment Advisor - ...

    An advisor or firm engaged in the investment advisory business ...
  5. Investing

    The act of committing money or capital to an endeavor with the ...
  6. Investment Fund

    A supply of capital belonging to numerous investors that is used ...
Related Articles
  1. Professionals

    Investment Advisors Act of 1940

    FINRA Series 6 Exam Study Guide - Investment Advisors Act of 1940. This section defines investment advisor, IA 1092 and Investment Advisor Representatives.
  2. Term

    What's an Investment Advisor?

    An investment or financial advisor makes investment recommendations and analyzes securities.
  3. Retirement

    Why Financial Advisors Disagree

    Financial advisors sometimes offer conflicting opinions that can be confusing for many investors.
  4. Personal Finance

    The Cost And Consequences Of Bad Investment Advice

    Is your advisor working for you, or for him/herself? Find how to tell the difference.
  5. Professionals

    A Financial Advisor’s Job Is Not to Beat the Market

    Understand what the real job responsibilities of a financial advisor are, and why they do not include picking investments that beat the market.
  6. Financial Advisors

    The Pros & Cons of Alternative Investments

    Alternative investments are becoming popular investment vehicles for individual investors. Here are the pros and cons of adding them to your portfolio.
  7. Entrepreneurship

    Using Licensing to Rent Your Ideas to Large Companies

    Learn how to license your ideas to get your groundbreaking product on the shelves without raising capital or having business expertise.
  8. Professionals

    Investment Advisor Representatives: Definition

    FINRA/NASAA Series 66: Section 8 Investment Advisor Representatives: Definition. This section defines the investment advisor representative (IAR) under the USA.
  9. Brokers

    Top 4 Signs Of Over-Diversification

    Learn how to spot over-diversification in your portfolio and find out why some financial advisors are motivated to do it.
  10. Financial Advisors

    How to Know When to Pass on an Investment

    Knowing what to invest in is important, but knowing what not to invest in is equally important. Here's how to decide when to walk away.
RELATED FAQS
  1. What are some of the limitations of only looking at the rate of return for an investment?

    Learn why only reviewing the rate of return for an investment poses a risk to the investor and what additional factors should ... Read Answer >>
  2. How should I invest the money I keep on my IRA?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ... Read Answer >>
  3. What investments have been the poorest historical performers?

    Learn about low performance investments and how they are used by investors. Find out which investments lose funds and how ... Read Answer >>
  4. How can I use risk return tradeoff to determine my risk tolerance and investment ...

    Learn how an investor can use the risk-return tradeoff to determine what assets to include in a portfolio, and understand ... Read Answer >>
  5. Do financial advisors get paid by mutual funds?

    Learn how mutual funds reimburse financial advisors for recommending that their clients invest in funds and stay invested ... Read Answer >>
  6. How quickly should my financial advisor sell a stock that I have asked him or her ...

    Financial advisors and planners have fiduciary responsibilities to their investors. They owe their investors a high degree ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center