Now, which invest. If asked, ' why? ' is definitely a lot that can answer, ' the level of inflation-beating savings and fixed deposit interest rates. Only investments that can beat inflation rate. ' Anyone really understands the link between inflation and interest rates and not a few who simply quoted the speech the expert financial planner.
However, when someone wants to start investing, there is usually a variety of sequence confusion encountered. Questions like ' when are the right time to invest? ', ' what type of investment must be chosen? ' to ' how much money should be set aside to invest? ', are some of the many questions that generally raged in the minds of potential investors. Or lest you ever asking similar things anyway?
When the confusion that continues, perhaps you will never be able to start investing. To keep struggling with the confusion-confusion, here are four tips that you can set the benchmark to start investing.
What do you expect from that investment?
Try to start by answering the above questions. Easily you will be able to answer it because of course you already have investment objectives to be living. For example, the preparation of the budget, pension funds, children's education, buy a home, or other things. Well, from each of these goals you will know the length of time the investment required, such as short, medium, or long term. That way, you'll get an idea of how long the investment targets will be performed and the type of investment that is suitable according to your current age.
Directly or indirectly?
Wear the existing theories, investment is divided into two types, namely direct investment and indirect investment. For direct investment, you will hold the physical evidence of the investment made. For example, open a business, buying property, or buy precious metals. In contrast, for investments not directly, as an investor you will not hold the physical form of investment. You only have proof or certificate of ownership of the investment. Examples include stocks and mutual funds. Well, the options are adapted to the needs that are required.
Want a great profit or safe?
Answer these questions, of course, you tend to answer both, i.e. profit big and safe. Unfortunately, the common law in investing is "high return, high risk", so, the result of high investment will be proportional to the risk that high anyway. Vice versa. This is where the necessity of You aware of any risks involved in the investment products selected. How do you do? Find out more about financial information by following financial forum or ask an expert.
If necessary, seek a financial advisor can help you figure out the personal portfolio and identify the types of investment in deeper. That way, you'll be able to ask a few questions to find out your risk profile and can choose the type of investment according to the character you have.
How much money must be allocated?
The answer to that question is indeed relative. But, it doesn't mean You have to sacrifice a mandatory monthly budget, only to embark on an investment.
Indeed, every investment always needs capital. However, in order to secure the money used must be exactly the money is not used (idle money). So instead of using savings or even use emergency funds. If it had to set aside income to invest, ideally set aside 10% of the income you have.
