Monday, October 17, 2011

How to invest wisely: investing tips for beginners

Preaching about the loss of customer funds, bulging investment and accounts burglary in some of the media make us afraid to invest. And also many clients who suffered investment losses as a result of improper practices of unscrupulous financial practitioners. Is it necessarily make us decide not to invest? Fear of investing! Why?

Nothing in this world that is free of risk. There are no conditions that will always be in line with expectations and desires. You may say, then what? what should we do? The answer is: Stay invested (Keep Investing)

Investment planning

Investment can be planned, even had to be planned. Investment planning process is the one that became the starting point where your investment will lead to success or failure. what is investment planning? Investment Planning is a process of how you accumulate assets and regular income that you have today to prepare for funding requirements that will happen in the future.

What are the funding needs in the future? Education your child's school, where they will continue to university, the preparation of your pension, your sons and daughters weddings and other financial obligations that will arise in the future, that things become a necessity in your future. Financial obligations in the future are certain to happen, you can not resist and escape.

The next question, Does Investing Is the Best Choice? Yes, as long as you do proper planning then the investment is the best option.

Here are some steps you can take when planning to Invest:

1. Determine goal / purposes of your Investment
You must determine what your investing goals is. Does the funds you invest only for safety (hedging), to get a regular income (cash flow routines) or you expect a development fund (growth). Once you have established which you choose your investment will be run according to your choice. Many people when investing, do not know their goal. Generally they invest because they see or hear their friend make a profit and then tried to snap out of it.

2. Know your investment risks
Each investment must contain risk. No investment is risk free. But you must remember behind every risk there must be a profit. Risk and profit go hand in hand.
High risk must have high gain and vice versa. If you've been offered an investment product that there is no risk but has a higher profit -That's too good to be true- then there are two things we can conclude: The seller is a fraud, or the seller is stupid.

3. Determine when your investment funds will be used
You should already know exactly when your funds are needed, what is it worth and for any purposes. If you already know the details when it's needed, then the process of selecting an appropriate investment instruments for the purpose will be easier. Generally, investment products are divided by time period: Short-term (1-2 years), Medium Term (2-5 Years) and Long-Term (> 5 years).

4. Make a list of options of investment instruments
where to invest your money? There are many investment instruments in the market. Starting from investing in stocks, investing in bonds, investing in gold, Mutual Funds, ETF (Exchange Traded Fund), commodities and options. Many people began to invest in the first time because they are offered by the nearest person or did not know any other investment types. It is appropriate that you do research on products in the market, then learned the character of each product. Decide which ones you think are most suitable and appropriate to your character and your investment goal that's best investments for you.

5. Determine how much funding will be invested and how often you will place the funds
Why is this important? because some investment options typically have a minimum requirement of investment placement. Therefore you need to know how much money you will invest. The benefit is that you can instantly determine if you will invest at once (lump sum) or will regularly every month. It has something to do with the method of investment. Both methods are equally good, but from some investment literature found that the more often you invest more and more efficiently the results of your investment.

6. Implementation
You've planned, already knows which investment will you choose, and your funds has been prepared. Now, It is time to turn the plan into action / implementation. Many people are good at making plans but never implement the plans. How will you get to the destination if you do not start running. As long as you have planned well, then do not be afraid to start moving. If the plan has been prepared as possible then the implementation will run in line with expectations as well.

7. Monitoring and Evaluate Your Investment funds
Monitoring of investment useful to know what actions must be done if the plan and the implementation that you've done, it strayed far. You will be the primary decision maker on what actions should be done. Do not just rely on information from others or your investment advisor. Heartbreaking events that just happened on the loss of billions of dollars of customer funds is due to investors believe too full and not routinely monitoring the funds.

The reality is, investing is not easy. Need to continue to learn and not give up when tripped. World Investment continues to grow and very dynamic, where investment opportunities continue to come to you. The steps above can be used as the first reference when you want to invest.

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