### Hands off Investor

A hands-off investor prefers to set an investment portfolio and make only minor changes for a long period of time. For example, the consumer might never become an investor, but may invest in a few different funds on a regular basis to vary his investments. Other than that, he lets his investments do the investing for him. You can continue reading this to get all the details.

When you read that you might get a 30% increase in your wealth if you invest 20% of your net worth in the stock market you start to worry. You’re not putting 20% of your net worth into the stock market. That’s simply taking your current net worth and putting 20% into the stock market. That’s how the math works. You aren’t going to make a 30% jump. So what? Then how does it make any sense?

**How to Invest When Investors Call**

So let’s say the investor who wants to take a 1% bump in his wealth wants to do it within the first 30 days. I think there is a better way, a better number. Investing in the stock market involves investing in a number of individual stocks. Let’s look at the story.

Let’s say the investor has $1,000 in net worth and wants to invest 15% of his net worth in the stock market. The math here is simple. After doing a $1,000 purchase of stocks the investor can continue buying 15 stocks per day until the balance is $15,000. After 45 days the investor would have a $15,000 balance. After 60 days the balance would be $32,000. At the end of the 180 days he would have about $129,000 in net worth. His cash balance would be $128,000. His stock balance would be $131,000.

Now that we know the math, let’s take a look at the scenarios for both scenarios. If you invest $10,000 in the stock market for 30 days then you will start with about $34,000 in cash balance, so you will get an increase of $7,000 in net worth. If you were to invest $34,000 in the stock market you would start with an identical cash balance and a value of $7,000.

Let’s assume that you get the 30% bump and invest another $10,000 in the stock market. You would start with an identical cash balance, but the value of your stock balance would be $21,000. Your cash balance would be $22,000.

If you invest $50,000 in the stock market for 30 days then you would start with a value of $77,000 and would have a total net worth of $234,000. If you’re a businessman investing in different markets, then you might want to go to WECU and see how they can help with your finances. You may also want to try fx trading by VT markets.