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.

Investing can be defined in many different ways. It can be termed as the proactive use of your money to make more money or, to say it another way, it is your money working for you. Another way of looking at it is when you use your savings to buy something and think you will earn a decent amount of income and/or go up in value over time.

The concept behind investing is that you put your money to use in such a way that it is likely to turn into more money. So investing is not only an opportunity to make more money, but away to protect the money that you currently have.

Short-term investing or day trading cannot be classed as investing because it's virtually impossible to see the very near-term future of a stock, however if you enlighten yourself and then take a long-term perspective, there is an excellent chance that you will earn a great return on your investment. In retrospect, investing will require a more conscious decision.

When you put your money to invest that and it accrues value at a slower rate than the rate of inflation it will worth less and less as time passes. So in other words, you have to be creative and take some risk if you want to make more from your initial investment.

Stock Investing is more than just the receiving the right to receive future cash distributions from any business. When you initially buy a stock, you are buying a piece of a company or business and you become a part owner. For example, a lot of the people that joined Microsoft in the early days became part owners as well as employees of the company and ended up as millionaires because the value of Microsoft shares shot up.

There are different characteristics that set investing in stocks apart from savings. Trading in stocks differs from investing when you consider that trading relies more on the fluctuations of the stock value itself. Furthermore, stock investing risks are not distributed equally across all time-periods in which it is possible to own stocks.

Real Estate investing is another form of investing that can generate wealth. However, most people are lead to believe that real estate investing is only for the wealthy folks. What seems to amaze me it the amount of people who get started in real estate investing, only to fail when the going gets tough. Buying and flipping real estate over time has proven to be a great way to get started in real estate investing. Another way of taking advantage to real estate investing is to use the no money down concept and keep your ethics intact. A lot of people continue to ask if it is possible to get a piece of real estate without any of your own money. There are different ways to invest in real estate with none of your own money. It all depends on the value of the real estate in question when you purchase it. If you can get it at a reasonable discount to actual value, there are specialist lenders that will borrow you all the money up front in exchange for a good return on the money they borrowed you.

Finally, succeeding in investing will require you to anticipate the anticipations of others. The real key to investing is to minimize the outward risk and to maximize the financial reward. Investing could be termed as the science and art of trading off risk against reward.

Ade Lamidi