“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” -Paul Samuelson I start with this quote because I don’t have get-rich-quick tips nor stock recommendations that’d multiply your money quickly; this article is on how to approach investing over a long term horizon in a manner that suits your risk appetite. Before looking for products to buy, you first have to decide on your asset allocation.

What asset classes are there?

Stocks Also known as equities, this asset class is typically of a higher risk with greater potential returns. When you own stock of a company, your stock price fluctuates with market forces as well as the business performance of the company. When the company does well, prices of the stock tend to go up and the inverse is obviously true. If the company goes bankrupt, its...