Investment|Articles, Answers and Videos - on Investment
Dec
19
Filed Under (Marketing & Sales) by investment
skurumunda asked:
I just joined an investment management firm as a business analyst but I don’t know the first think about investment management. What would you books, courses, etc, would you recommend that I look improve my career?
MIQUEL
I just joined an investment management firm as a business analyst but I don’t know the first think about investment management. What would you books, courses, etc, would you recommend that I look improve my career?
MIQUEL
Dec
17
Filed Under (Profits) by investment
Debbie Dragon asked:
It would be hard to develop a strategy to pay off your debt if you had no idea how much debt you had. It’s just as difficult to develop an appropriate investing strategy if you don’t have a reason for investing. Without a purpose, it’s impossible to make decisions about the type of investments you should invest in, and without a goal- how do you measure your level of success?
People invest for a wide variety of reasons. The most common reason people invest is to save for their retirement. Most people want to stop working at a certain age, in order to enjoy the last years of their life without the stress of going to work every day. The only way it’s possible for people who are not independently wealthy (by an inheritance or a business that will operate without the owner’s input, for example) is to have money saved that can be used to pay expenses and entertainment costs once a person retires.
The other common reason why people invest their money is to reach a certain short-term financial goal.
Investing for Short Term Goals
While most people first think of retirement and long term investing when they think of investing, there are many instances when investing also includes short term goals. Buying a new vehicle, going on your dream vacation or purchasing a new home are all examples of short term investment opportunities.
Short term investing requires different strategies than long term investing, which makes understanding your investing purpose all that much more important!
If your idea is to have another income stream to supplement your salary, or to help you purchase items you don’t have the cash saved to buy, your investment portfolio should contain a mix of short and long term investments that pay dividends. It should contain low risk, high yield bonds.
If your investment purpose is to save for a specific purchase- perhaps your dream home or to take a vacation, it helps to know how much the purchase will cost and when you need the money. Armed with that information you can develop a strategy for investing.
Short term investments are known to be more challenging than long term investments, particularly if you’re not starting out with large amounts of money. Short term investments tend to carry higher levels of risk; but they also have the greatest possibilities for high returns.
Investing for Long Term Goals
The earlier you begin investing for retirement, the higher the amount of money you can create. Young investors can take advantage of compound interest, and even choose riskier investments that could result in higher returns because they have so much longer to recover from a loss than a person who is closer to their retirement age.
As you get closer to your retirement years, your long term investing strategy should contain much less risky investments- including bonds and securities, to help minimize your risks for losing your investment. The lower risk investments have lower rates of return, but should steadily increase.
Retirement investment portfolios typically contain a mix of various stocks, bonds, debt securities, index funds and money markets. Company sponsored retirement plans are great, particular those that match your contributions. It helps you build your nest egg a little faster and stretch your own investment dollars further.
As you age and get closer and closer to retirement, you should move your investments into guaranteed investments (like high interest savings accounts that are insured by the FDIC) to preserve your money so you know it’s there when you need it!
EDWARDO
It would be hard to develop a strategy to pay off your debt if you had no idea how much debt you had. It’s just as difficult to develop an appropriate investing strategy if you don’t have a reason for investing. Without a purpose, it’s impossible to make decisions about the type of investments you should invest in, and without a goal- how do you measure your level of success?
People invest for a wide variety of reasons. The most common reason people invest is to save for their retirement. Most people want to stop working at a certain age, in order to enjoy the last years of their life without the stress of going to work every day. The only way it’s possible for people who are not independently wealthy (by an inheritance or a business that will operate without the owner’s input, for example) is to have money saved that can be used to pay expenses and entertainment costs once a person retires.
The other common reason why people invest their money is to reach a certain short-term financial goal.
Investing for Short Term Goals
While most people first think of retirement and long term investing when they think of investing, there are many instances when investing also includes short term goals. Buying a new vehicle, going on your dream vacation or purchasing a new home are all examples of short term investment opportunities.
Short term investing requires different strategies than long term investing, which makes understanding your investing purpose all that much more important!
If your idea is to have another income stream to supplement your salary, or to help you purchase items you don’t have the cash saved to buy, your investment portfolio should contain a mix of short and long term investments that pay dividends. It should contain low risk, high yield bonds.
If your investment purpose is to save for a specific purchase- perhaps your dream home or to take a vacation, it helps to know how much the purchase will cost and when you need the money. Armed with that information you can develop a strategy for investing.
Short term investments are known to be more challenging than long term investments, particularly if you’re not starting out with large amounts of money. Short term investments tend to carry higher levels of risk; but they also have the greatest possibilities for high returns.
Investing for Long Term Goals
The earlier you begin investing for retirement, the higher the amount of money you can create. Young investors can take advantage of compound interest, and even choose riskier investments that could result in higher returns because they have so much longer to recover from a loss than a person who is closer to their retirement age.
As you get closer to your retirement years, your long term investing strategy should contain much less risky investments- including bonds and securities, to help minimize your risks for losing your investment. The lower risk investments have lower rates of return, but should steadily increase.
Retirement investment portfolios typically contain a mix of various stocks, bonds, debt securities, index funds and money markets. Company sponsored retirement plans are great, particular those that match your contributions. It helps you build your nest egg a little faster and stretch your own investment dollars further.
As you age and get closer and closer to retirement, you should move your investments into guaranteed investments (like high interest savings accounts that are insured by the FDIC) to preserve your money so you know it’s there when you need it!
EDWARDO
Dec
14
Filed Under (Education) by investment
elliottwaveintl asked:
Part 1: Robert Prechter speaks at the 2007 New Orleans Investment Conference.
Visit Prechter on the web for his latest market commentary, monthly market letter and additional free and subscription resources: http://www.elliottwave.com/wave/youtube
JUDSON
Dec
03
Filed Under (Investing) by investment
James Delrojo asked:
In the world of investing there are many different investment vehicles and strategies but they can be split into three broad categories. The advantage of thinking from this point of view is that it makes it easier to decide which form of investing or which combination of investing will best suit you.
Let’s have a look at the three broad categories of investing and look at the advantages and disadvantages of each.
Passive Investing
Passive investing is when you put the investment decision making into the hands of someone else, ideally an expert investment manager.
The advantages of passive investment are that you are not required to have any investment expertise and you don’t have to invest your time, only your money. The disadvantages are that firstly you have relinquished your control over your money and secondly the returns for these types of investment are usually uninspiring.
Common examples of passive investing are savings accounts, government bonds, property trusts and mutual funds. Most people invest for their retirement under some form of passive investment that usually has special tax concessions which vary from country to country.
Active Investing
With active investing you take an active role in managing the investment. This form of investing could have a long term focus such as a buy and hold share portfolio or it could be a short term focus such as futures trading.
To do well in active investing you need to have considerable knowledge of the investment vehicle or vehicles that you are using. You also need to understand the basic principles such as when to collect profits, when to cut losses and how to analyze the market. You also need the emotional strength to apply these strategies as required (this is often the most difficult aspect of active investing).
The advantages of active investing are that you have greater control over your investment than you do with passive investing and the potential for profit is theoretically higher. The disadvantages are that you need to invest time in acquiring knowledge and skills and in managing your investments and also that the potential for loss is also generally far greater than in passive investing.
Common examples of active investments are share, options, futures, and currency trading, buy and hold share portfolio building, buy and hold residential or commercial property, and property trading.
Creative Investing
With creative investing you actually change the investment in some way that is designed to manufacture profit. This form of investment requires a lot of skill and experience but if you have that skill and experience then you can create huge profits by being able to visualize what your investment could be once you have applied your imagination to it. For this reason creative investing is often described as turning thought into money.
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and also has a huge potential for large losses if you get it wrong.
Common examples of creative investments are property development, property renovation, business renovation and new product development and marketing.
When you are deciding which of these three broad categories best suits you need to consider your knowledge and experience, your strengths and weaknesses, your access to resources, including time and money, and in particular you need to consider your personality including your time management skills, decision making skills, tolerance for risk and your self discipline.
There are of course many expert consultants to help you in each field and many sources of knowledge and experience to tap into.
I hope that this article was useful in helping you see where the various types of investments fit into the scheme of things.
DAN
In the world of investing there are many different investment vehicles and strategies but they can be split into three broad categories. The advantage of thinking from this point of view is that it makes it easier to decide which form of investing or which combination of investing will best suit you.
Let’s have a look at the three broad categories of investing and look at the advantages and disadvantages of each.
Passive Investing
Passive investing is when you put the investment decision making into the hands of someone else, ideally an expert investment manager.
The advantages of passive investment are that you are not required to have any investment expertise and you don’t have to invest your time, only your money. The disadvantages are that firstly you have relinquished your control over your money and secondly the returns for these types of investment are usually uninspiring.
Common examples of passive investing are savings accounts, government bonds, property trusts and mutual funds. Most people invest for their retirement under some form of passive investment that usually has special tax concessions which vary from country to country.
Active Investing
With active investing you take an active role in managing the investment. This form of investing could have a long term focus such as a buy and hold share portfolio or it could be a short term focus such as futures trading.
To do well in active investing you need to have considerable knowledge of the investment vehicle or vehicles that you are using. You also need to understand the basic principles such as when to collect profits, when to cut losses and how to analyze the market. You also need the emotional strength to apply these strategies as required (this is often the most difficult aspect of active investing).
The advantages of active investing are that you have greater control over your investment than you do with passive investing and the potential for profit is theoretically higher. The disadvantages are that you need to invest time in acquiring knowledge and skills and in managing your investments and also that the potential for loss is also generally far greater than in passive investing.
Common examples of active investments are share, options, futures, and currency trading, buy and hold share portfolio building, buy and hold residential or commercial property, and property trading.
Creative Investing
With creative investing you actually change the investment in some way that is designed to manufacture profit. This form of investment requires a lot of skill and experience but if you have that skill and experience then you can create huge profits by being able to visualize what your investment could be once you have applied your imagination to it. For this reason creative investing is often described as turning thought into money.
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and also has a huge potential for large losses if you get it wrong.
Common examples of creative investments are property development, property renovation, business renovation and new product development and marketing.
When you are deciding which of these three broad categories best suits you need to consider your knowledge and experience, your strengths and weaknesses, your access to resources, including time and money, and in particular you need to consider your personality including your time management skills, decision making skills, tolerance for risk and your self discipline.
There are of course many expert consultants to help you in each field and many sources of knowledge and experience to tap into.
I hope that this article was useful in helping you see where the various types of investments fit into the scheme of things.
DAN
