Posts Tagged ‘Investment’
How to Develop a Sound Investment Plan
Article by Rob Forbes
It has been stated that to change to plan is to plan to fail. To be successful at investing, you need to have a well thought out plan that sets into place your basic value system, your objectives and a variety of investment types and strategies.Every mortal reading this article will be living, working and investing in different circumstances, with mind boggling possibilities for variation.
For example:
One mortal might have a full time job, but invests part time; Another might run a small business, with investment on the side; Yet another might invest full time, as a business.
However, very few of us get to begin full time investing right away – we just don’t have the capital. So, what to do? You need to develop your own long term Investment Plan – one that will grant you make changes in your circumstances and lifestyle. Each plan must be different, and your plan needs to be flexible. Here are some principles that you can use to develop your own plan: * Don’t quit your day job until you have built up adequate capital to weather the inevitable draw downs that each investor has to go through. Don’t live in the stupidly false hope that it won’t happen to you – it will! Take this as a given, and plan for it! * Begin with a relatively low risk, but steady investment strategy (like selling options). Save the windmills (like buying options) for when you have the time to really focus on your investments. Once you have built up your capital with a relatively innocuous (and boring) strategy, begin branching out into more fun stuff! * Diversify your investments, at several levels. Invest in different types of investment cars like stocks, bonds, CDs, mutual funds and dividend earners. Use different investment strategies, in ways that match your lifestyle, time allocation and risk tolerance. Think about long term position trading, momentum trading, swing trading, selling options (like credit spreads and unclothed puts), buying options (buying puts and calls or Deep-in-the-money options). Allocate your portfolio to different TYPES of investments and different STRATEGIES of investment. * Add an extra leg to your income generating efforts. If you have a full time job, then begin a small business on the side – one that can run itself once you have set it up. Unless you really need this money, use the income from this business as seed money for your investment portfolio. * Don’t get concerned with investing. Invest for a purpose, not just to get rich. Use the money to GET A LIFE – preferably with your family. The classics are too full of stories and histories of people who end up hugely rich, but divorced, forsaken by their children, rejected by their friends… and so on. Investing can swallow a mortal up, and unless you keep a massive perspective, you can drown. * GET OUT OF DEBT! Why pay interest to someone else, when you could be investing that money. I am speaking about all kinds of debt….credit card, mortgage…everything! Add up all the interest that you have paid this year, then work out how rich you would be if you had taken that money (instead of making someone else fat) and invested it in plan that gave you a good return. The result will shock you! * Be generous!!! History shows that generous people are always much superior off and much happier than the other kind. Remember: those who change to plan plan to fail. The cliche is old, but truth remains!
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About the Author
Rob Forbes is a World Citizen with a wide variety of interests and expertise. A wildlife ecologist by profession, he currently lives in Asia, where he is the director of a small humanitarian aid organisation that specialises in education projects, leadership training, family development, small business development and investment.
4 Great Investment Opportunities
Article by Bruce Dillon
Do you have thousands of dollars sitting in a bank statement making the minimum interest rate? Do you wish you could somehow place this money to work making more money for you while you aren’t using it? Investing is a great way to acquire money while it is not being directly used by you. There are many types of investments with varied lengths of time that can establish useful for you.
1.Certificate of Deposit
While you do acquire some interest leaving your money in a regular savings account, you do not make almost as much as if you invest it. One great way to invest is with a T-Bill or a Certificate of Deposit. These are great because they are guaranteed by the government. Also, you can get these for anywhere from three months to a full year. So, if you want to leave your money in one and use it later, you do not have to worry about the maturity date not having been met. However, the longer your investment is for, the greater your interest rate is.
2.Bonds
A bond is a type of investment in which you lend your money to a struggling company or to the government. The interest rate with this depends on the length of the investment term, and level of risk. Investment in a relatively stable company or government is low-risk, so the interest rate will be low as well. However, if you take the higher risk of investing in a less stable company or government, your interest rate can be higher. This all depends on how comfortable you are taking risks. Either way, bonds are a great opportunity to help a struggling country or the government while making a profit.
3.Mutual Funds
Mutual funds are great if you want to invest in more than one thing with tiny risk. With mutual funds, you invest your money with other investors in many stocks and bonds. Collectively, the investors have one professional manager who makes sure that you are getting your profits. This is a great way to invest because it minimizes loss, should the stocks or bonds take a hit. One drawback is that your investments are in the hands of someone else.
4.Stocks and Shares
When you buy stocks, you are becoming part owner of a business. The company’s profits are often directly reflected in your earnings, and you are granted to vote in shareholders’ meetings. Aside from the company giving dividends, you make money when the value of the stocks rises. This type of investment is great because the potential for acquire is tremendous. If you pick out a good up and coming business and buy stocks while their values are still low, you will be healthy to sit back and watch the value rise.There are many ways aside from these to invest, but these are a few great options. Think about investing your money in many different types of investments. Diversification is good for minimizing loss and trying out different types of investments. Investing is a good way to acquire extra money and possibly help other businesses and the economy.
About the Author
Bruce adores ezgo golf carts.Check out his site on ezgo golf cart parts and ezgo golf cart accessories at http://ezgoGolfCartAccessories.com
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