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Posts Tagged ‘Investment’

Choosing Investments to Fit Your Needs

After studying the types of investment above, the steps you must do is know the benefits of all types of investment. Each type of investment has some distinctive characteristics, namely the potential yield obtained, the level of investment risk, investment time period of an ideal, easy to dilute investments, and the amount of capital needed.

In terms of ease to dilute the return on investment, asset financiaI easier to sell than real assets. While the terms of the investment period, investment in real assets and financial assets divided by 3 to suit your needs.

For your long-term needs, shares and property is the appropriate type of investment because it provides the potential for high growth in investment returns. Bonds are a suitable investment for your medium-term needs because it provides coupons regularly. Meanwhile, for the short-term investments, products such as savings banks are the most appropriate financial products.

Once you understand the benefits of each type of investment, choose one that best suits your financial needs time period. In addition, you should consider other criteria that you established to make investments.

Did you know The difference Saving and Investing?

Before knowing the types of investments, you should know first the difference between saving and investing.

Saving means setting aside your money without expecting an increase of the value of the money you save. By saving money in the bank, at least you know that your money would be safer than if you put it under the pillow. Indeed, if we see a glimpse, a variety of savings in the bank to offer interest on savings of 1-3% annually. However, if you notice, every year the prices of goods are always up to the percentage that far exceeds the savings interest you. If you are aware, the actual money you have been reduced in value.

Meanwhile, investing means expecting an increase of the value of your money over time, so it will benefit you. The money is expected to provide will increase in value is stored in a form called asset wealth.

Types of Assets

In investing, there are two types of assets, namely real assets and financial assets, which can both be considered as an investment vehicle in order to achieve your financial goals. In investing, you should remember that there are always going to risk losing your capital. Therefore, you must know the right assets you choose to invest.

Real Assets
Real asset is an asset that has a form. Examples are land, houses, gold and other precious metals. Investing in real assets is a common thing to do. For example, you buy a house, and then rent it to get a monthly income. Not to mention when the house was finished rented and the price goes up, you can sell and profit. You will get many benefits from investing in real assets, because even if the price can go up and down, but in the long term value is likely to increase.

Financial Assets
Financial assets are assets that its form is not visible, but still has a high value. Generally there are financial assets in the banking sector and also in the capital markets, which in Indonesia known as the Indonesia Stock Exchange. Some examples of financial assets are money market instruments, bonds, stocks and mutual funds.

Money market instruments are short-term debt of less than one year issued by governments or companies. In return, you as a creditor will get some interest from the initial value of your investment. Generally, this interest will be paid at the end of investment period.
Examples of money market instruments are deposits, Bank Indonesia Certificates and promissory notes. In general, money market instruments have high levels of investment risk in the form of failing to pay the value of investments and the interest is very low.

Bonds are debt securities issued by governments or companies. Duration of debt on the bonds is more than one year. Bonds traded in capital markets. You are buying bonds will get rewarded with some flowers from the initial value of your investment, which is called the coupon. This coupon is usually paid every 3 or 6 months in one year,
Bonds lower level of investment risk, but the risk is slightly above money market instruments. The biggest risk faced by you as the bondholder is the possibility that the issuer can not repay its debts. Therefore, there are agencies that give ratings to bonds issued to find out how big the risk of default on the bonds.

Stock is proof of a person’s ownership of a company. People who own shares are entitled to share the gains the company, called the dividend, according to the percentage of ownership in the company. In addition, a company’s stock price will move follows the company’s performance.
If the company is performing well, then the share price will go up so that shareholders will benefit if you sell shares. Shares are also traded on the stock market and have a high level of investment risk, because there is a risk of bankruptcy a company so that your money can be lost.
In investing in stocks, you should find out if the company really has a good performance. You must do the analysis based on financial statements issued by the company, the country’s economic conditions, and other things that simply take up your time. But of course this is comparable to the potential gains.

Mutual fund is a container to collect public funds are managed by a statutory body called the Investment Manager to then be invested into other financial assets. The funds are deposited in a bank deposit with the custodian bank called.
Mutual funds are the solution for people who want to invest in many assets, but have limited funds. This is possible because the funds collected from many quarters large enough to then be invested in stocks, bonds and money market instruments in accordance with the policies of the Investment Manager.
In addition, a mutual fund is also an excellent solution for memilii limitations in knowledge and information in conducting investment analysis, as well as for those who do not have enough time to oversee the daily movement of stocks and bonds you. To find out more details about mutual funds, you can read the Mutual Fund & You.

Internet entrepreneurs have the benefit of being able to work from home or anywhere in the world that has an Internet connection. It doesn’t take a lot of money to get started and the risk is relatively low. All it requires to get started is an investment of your time, and a few good ideas.

CPA Marketing
Through CPA, or cost-per-action marketing, companies will pay you when a customer fills out a form or if they accept a free trial and you get paid. Payment can range from between $1.00 to $40.00 depending on the offer.

Create your Own Product
If you have expertise in a particular area, you can create an ebook or video training course. For example, if you are a real estate agent you can create a course about selling houses. If you are a stock trader you can create a course on how to invest. You can then register with a network such as Clickbank and their army of affiliates will sell your product for you in exchange for a commission. Read the rest of this entry »