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Happy investor. Image: pacificcommunities.com
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In a wide
range books on tips to achieve financial freedom, and prevents you from
financial problems, then there will be an explanation that the investment is a
process of setting aside funds in order make a profit in the future.
Do you
already have a financial plan and choose the type of investment?
If you
want to realize your financial goals over five years, for example prepare
retirement funds, an investment (rather than a regular savings account) is the
right choice. To determine the pension fund you need to prepare then you can
use a few simple tips, as mentioned below:
1. Define the purpose of your investment
Find out
the reason you invest, whether expected increase in value of investment or
passive income is routine. The purpose of these investments will affect the
investment products you want to select.
As an
example, if you choose the investments in property, then the property should be
leased so that you will get regular income from these investments. If you want
to profit from the capital, means that you are buying the property must be sold
back to the higher selling prices in order to gain an advantage, but you must
choose the right time to get high selling prices and profitable.
2. Identify the risk profile of
investment:
Investment
risk profile is distinguished in the category of moderate, conservative and
aggressive. This category is very important so that you know you know the
results and risks will occur.
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| Property investment in Bali. Image: tripwow.tripadvisor.com |
The risk
profile is an indicator of your tolerance for risk of loss of funds invested.
If you want a safe investment because the product did not dare to take the risk
of loss, it is classified as a conservative investment.
When you
choose fairly risky investments in order to get higher returns, the investment
is classified as moderate. Meanwhile, if you dare to bear high risk in order to
obtain high profits, the investment is classified as aggressive.
For the
category of conservative, proper investment products are fixed-income funds or
government securities safe sort of retail bonds. As for moderate investment is
when you choose the property and gold. For aggressive investment category is
when you invest in mutual funds.
3. Consider the age and investment
period
The risk
profile can be determined by the age of the perpetrator or the investor and
investment period. The younger the age, so is generally the more aggressive in
investing. If you are over 40 years old you have to be careful in choosing the
category or risk profile so that you can be more calm and comfortable, and not
easily surprised if your investment suddenly are falling due to global economic
shocks and global financial turbulence.
4. Avoid investing in one basket
Remember
the following advice: do not put the whole eggs you have in one basket. For if
the basket falls, all your eggs will be broken, so it is the principle when you
invest. When you put your money in some investment instruments, then you still
have a backup if there is one instrument that suffered losses. You will do this
if you have sufficient funds, so you have a lot of investment options. If you
do not have a lot of money, then you should choose a moderate risk profile.
5. Be careful to offer the promise of
high yield investment
You've
heard that there are people or even companies that offer a very high return on
investment. Do not be easily tempted with a return that is too high, because
there may be a ponzi scheme. You need to think more deeply and immediately you
discuss with people whom you can trust, even companies that have aged decades
can cheat to their customers. Remember, Barack Obama had a headache in the
early days of his administration having to clean up crime and fraud in finance
and investment. Make sure you know the risk profile of any investment
opportunity that you do not get stuck and make you regret in the future.
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| Identify your investment risk profile. Image: actioncoach.com |
When choosing
the right type of investment, you can discuss with an expert financial planner.
You can visit the office of financial services companies such as securities firms;
contact your insurance agent or your friends who are already experienced on the
right investment.
Now you
can also purchase an insurance policy known as unit-linked, which is a
combination of life insurance with an investment program, you can add, even
with health insurance. Ask your insurance agent, and explain your needs to the agent,
so that your insurance agent can create a proposal that is right for yourself,
or for your other family members. The combination of investment and health
insurance will make you more comfortable, especially for those of you who do
not have a high income, so you should be safe from the high risk in the future.
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