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5 ways to choose an investment

You can choose an investment using several different strategies.You have many different investment vehicles to choose from.You will need to decide what your investment strategies and goals are before picking your vehicle.Once you have chosen your investment vehicle, you will want to keep it in gear and not to put it in cruise control.Too many people invest in items and then only check on them quarterly or yearly.You need to stay in constant control of your investments.

You have five major ways to consider your investing:

1.Goals
You will need to decide what your goals are when you get started investing.If your goal is to acquire a million dollars when you retire age 60, then you can determine what type of investments you will want to be involved in.If you want to have 10 million dollars at the age of 50, then you will need to choose different investments.

Your goals are not set in stone and can be changed, but investing is usually a long term strategy and having a short investing time frame can actually be bad for many types of investments.Set your goals early and stick with them.Reevaluate your goals each year to decide if they need restructuring in order to meet your long term goals and benchmarks.

2.Risk
You will want to determine the amount of risk you are willing to endure with your investments.Normally, the higher the risk, the higher the return is.However, the inverse could also be true and the greater the potential losses are too.Stocks can be considered fairly high risk.Some stocks will be riskier than others.For example, a newly public company will normally be a higher risk than a well established company like General Electric.

Usually a younger person will be more aggressive and take higher risk, because they can afford some losses.They will be able to stay in the work force longer to make up for their losses.As you age, you will want to convert your higher risk investments into lower risks like bonds and CDs because you can't afford to lose your nest egg.

3.Capital
You will also need to consider the capital you have to invest.If you have limited capital, you may find that your investment options are limited also.Many types of investments require a certain amount of capital to get involved.For instance, many mutual funds require two or four thousand as an initial investment.

4.Leverage
You will want to leverage your money as best you can.By putting down 10 thousand on a 200 thousand dollar house you have leveraged your money.If the house appreciates five percent in one year, you make 10 thousand or a 100% return on your investment.If you, don't leverage your money and get 5% on your investment you will have only made 500 dollars in your first year.Real estate is a very good vehicle to leverage your money because it is collateral on the bank's loan.

5.Time
Most investments require a certain amount of time for you to make your money.Day trading is very short periods, but the risk is quite high.Real estate and stocks are normally a longer term investment.You must consider the amount of time you will have the funds invested when determining your investment vehicle.

In summary, you have many different ways that you can choose your investment vehicle.You should set your goals and work towards them.Pick the investments that best fit your strategies.Remember, that you will need to periodically adjust your goals and your investments.

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