Simple guide to invest

Managing your own investment portfolios isn’t easy thing to do, cause you"re not Warren Buffet. You will be in for a major shock if make wrong decision. But you don’t need to worry, there are professional who know various investment and will help you to make the right choices. They are known as financial planner.

When you asking about investment options to financial planners, they will describe a lot more than you had knew before. A lot of people have knew about stock market or the mutual funds, but maybe not familiar with other investment options like private equity, trusts or real estate funds.

One thing that everyone should consider is knowing about investment profile. Financial planner will likely help you to define your investment profile. Basically there are 3 investment profile : Aggressive, Moderate and Conservative. Aggressive investor prefer high risk – high rewards portofolio. Oppositely, conservative investor will choose low risk – low rewards. Surely, the moderate investor is between both of them.

The risk taking capability is depend on investor”s age. Younger investor suggested to have aggressive investment profile. For example, if you are 25 years old, single and have a good job. You don”t have responsibilities of home and children, also there are bright future career ahead of you. You may take the “high risk – high reward” investment option. Why? Because you still be able to compromise with risk, regarding the high reward you”ll get in the future. If your investment portofolio loss 10% at first year, you maybe still waiting until third year to get 25% profit. At later stages, the older investor prefer to choose moderate or conservative investment profile. At age 40”s to 50”s you have more responsibilities like family to take care of and childrens education. There maybe a big problem if your capital investment lose 10%,
and at the same time you need to send your son to college. The two things that people should know first before investing are :
1. Define your investment objective
You may answer this question to know your investment objective
What is your investment goal?
What kind of investor are you?short term or long term?
At what level you could compromise with potential lost?
How long you can wait to “harvest” your investment?
2. Know your investment profile :
You may answer this question to know your investment profile
Are you panic when your investment lose at first year?
At what level you could compromise with potential lost?

The last thing is, no one know you better than yourself. So, no matter what financial planner said about your investment profile, all the decision is in your hand. Just be a wise investor to reach your goals.