Good investments are always out there, but investment opportunities are not always easy to find. What's important is that you find a good investment that fits your particular needs. This can be tricky business because it's all a matter of trade offs, and most people don't know investment basics.
A good investment for your friends might not be a good investment for you. For example, you don't want to place bets on a penny stock in an account earmarked for future college expenses. Penny stocks are not investment opportunities; they are speculation.
Believe it or not, many people follow the lead of a friend when making investment decisions. They want to invest money where Ralph did because, according to Ralph, he made a lot of money in investment opportunities he found. As a financial planner I ran across this time and time again from new clients that were referred to me by existing clients of mine.
Here are the investment basics. You can't have it all in any one investment. If you want growth (higher returns), you trade off safety. If you want high income or safety, you trade away high growth prospects. If you want the tax breaks offered by a retirement plan, you give up high liquidity (quick and easy access to your money without penalties).
So, when looking for good investments, make sure the investment fits your needs. If your kid starts college in two years, a bear market in stocks could change his or her plans if you had the college fund invested in stocks. If you are saving for a down payment on a house, the same holds true.
Rank your financial needs before you invest in anything. Always consider these five investment basics: liquidity, safety, growth, income, and tax advantages. No investment ranks high in all five categories.
A good investment for you depends on the investment basics that best describe your financial needs and financial position in life. For example, an IRA or 401k plan is great if you want to invest and earmark money for retirement. But you don't want all of your money tied up in stock funds in a retirement plan. What happens if you need cash fast for an emergency?
Don't call Ralph's financial planner and tell him you want what Ralph has. Instead, view every investment in terms of the investment basics. His investment opportunities might not be good investments for you.
Source: http://ezinearticles.com/?Good-Investments&id=3155712
Therefore, you should not follow on anyone's investment but you should asses yourself to what is best for you. Always consider the five investment basics: liquidity, safety, growth, income, and tax advantages.
I remember this saying from Buddha: "Believe nothing. No matter where you read it, or who said it. Even if I have said it, unless it agrees with your own reason and your own common sense."
Find your best fit according to where you are right now on your finances and needs. Stock market investing would be a good way to start. But you must see it for yourself or find a mentor to teach you about stock market.
Having a mentor will save you from doing the research. Mentors who walk the talk. Look for mentors who are successful in the field of Stock Market Investing.
I found one for me, providing me the do's and don'ts of Stock Market. What, when, where to buy and when to sell are all provided by my mentor. I'm super blessed with my mentor not just financially but also spiritually and emotionally.
Find it yourself my mentor in Stock Market Investing: TrulyRichClub
A good investment for your friends might not be a good investment for you. For example, you don't want to place bets on a penny stock in an account earmarked for future college expenses. Penny stocks are not investment opportunities; they are speculation.
Believe it or not, many people follow the lead of a friend when making investment decisions. They want to invest money where Ralph did because, according to Ralph, he made a lot of money in investment opportunities he found. As a financial planner I ran across this time and time again from new clients that were referred to me by existing clients of mine.
Here are the investment basics. You can't have it all in any one investment. If you want growth (higher returns), you trade off safety. If you want high income or safety, you trade away high growth prospects. If you want the tax breaks offered by a retirement plan, you give up high liquidity (quick and easy access to your money without penalties).
So, when looking for good investments, make sure the investment fits your needs. If your kid starts college in two years, a bear market in stocks could change his or her plans if you had the college fund invested in stocks. If you are saving for a down payment on a house, the same holds true.
Rank your financial needs before you invest in anything. Always consider these five investment basics: liquidity, safety, growth, income, and tax advantages. No investment ranks high in all five categories.
A good investment for you depends on the investment basics that best describe your financial needs and financial position in life. For example, an IRA or 401k plan is great if you want to invest and earmark money for retirement. But you don't want all of your money tied up in stock funds in a retirement plan. What happens if you need cash fast for an emergency?
Don't call Ralph's financial planner and tell him you want what Ralph has. Instead, view every investment in terms of the investment basics. His investment opportunities might not be good investments for you.
Source: http://ezinearticles.com/?Good-Investments&id=3155712
Therefore, you should not follow on anyone's investment but you should asses yourself to what is best for you. Always consider the five investment basics: liquidity, safety, growth, income, and tax advantages.
I remember this saying from Buddha: "Believe nothing. No matter where you read it, or who said it. Even if I have said it, unless it agrees with your own reason and your own common sense."
Find your best fit according to where you are right now on your finances and needs. Stock market investing would be a good way to start. But you must see it for yourself or find a mentor to teach you about stock market.
Having a mentor will save you from doing the research. Mentors who walk the talk. Look for mentors who are successful in the field of Stock Market Investing.
I found one for me, providing me the do's and don'ts of Stock Market. What, when, where to buy and when to sell are all provided by my mentor. I'm super blessed with my mentor not just financially but also spiritually and emotionally.
Find it yourself my mentor in Stock Market Investing: TrulyRichClub
Photo credits: http://www.flickr.com/photos/27682549@N06/4268270760
Be blessed and be a blessing!
Jesse Cadelina
Truly Rich Club Member
Jesse Cadelina
Truly Rich Club Member
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Nice blog brod! God bless!
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