Posts Tagged ‘investment goals’

Why Must You Invest

Sunday, November 9th, 2008

Nobody knows what’s up for the future. Have you ever been thinking of the future? What will happen to you and your family in times of your retirement or simply when you are fired from your job. Is your income today enough to send your children to a good school? When you grow old will you not be worrying about your financial status. These are just a few questions that keep on running in our minds when we think of the future. Investing is always the best answer.

Only God knows what will happen to us but we can do something in order to have a better future for our love ones that’s why investing has been very important. When you save money in the bank it only gains a minimal interest not to mention the risk of bank run. Maybe you have inherited a huge amount of money and you still want them to grow. Investing is still the answer.

People wanted to invest in order to have a better security and to attain the things they wanted. Thru investing we were able to have a goal. College educations for your kids, buying a new home or a very expensive car are example of the financial goals. When we invest you are simply adding your money and you surely have a secured future.

What type of investing would you do? Making money the fastest way is a higher risk in investing but gives you larger amount in return for a short period of time.  Investing for your retirement must be on the safer way because of the longer period of time. Earning for a living is not forever, there is always retirement. When Old age comes, you must have enough money to spend for your daily needs, medications and even for your death.

We all invest in order to have a better tomorrow. To live abundantly and to provide well for our love ones. Being financially secured makes our life worth living and you will surely feel contented. So make a smart move… Invest now and you will enjoy a better future.

Will You Take the Risk to Invest?

Friday, October 17th, 2008

How much risk can you take in investing your money? Although there is investment  risk involved, you must determine your risk tolerance. You must remember that your investment do not exceed your risk tolerance.

You can determine one’s risk tolerance through the following examples. First, determine how much money you have to invest, and what your investment and financial goals are.

  • If you are planning to retire in ten years, and you have no savings for retirement, you need to have a high risk tolerance. This is  because you will need to do some aggressive and risky investing move in order to reach your financial goal.
  • If you are in young and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.

Secondly, determine the level of risk that you are comfortable with, and help you choose your investments accordingly. For example , if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do? Would you sell out or would you let your money ride?

  • If you have a low tolerance for risk, you would want to sell out… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!

In short,  your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. These two are both tied up.

Investing for the Future

Sunday, September 21st, 2008

Every one of us dreams of seeing our children successful in their chosen fields; thus the need to think about long term investment.

Your child’s future depends on us.  Giving them quality education especially in their college years where it is the stepping stone for their own success. The same thing with your retirement.

Getting old is quite difficult if you have nothing on your pockets. Our love ones and our future should be well secured. Long term investment is the only solution for our future. You should be able to choose wisely where to invest when we think of long term investments. Here are some ways where your money is safe and easy to invest.

Bonds – bonds are issued by the government and are similar to Certificate of deposit issued by the banks. Depending upon the type of bond you purchase your money can be doubled in a specific period of time.

  • Mutual Funds . When a group of investors put their money together to buy investments is called mutual funds. This type of investment is safe as long as the fund manager who usually decides where to invest the money must know well where to invest the money but this is a bit riskier than buying bond certificate.
  • Stocks. Stocks are acquired when you buy a share of ownership of an existing company. If the company is doing well the value of stocks goes up and your investment is really good. Your money is doubled over a period of time but if not it the value goes down.

When you think of investing your money for a long term. Invest in bonds that are guaranteed by the government, or purchase a share of stocks of a very prestigious company that does well in the market or invest in mutual funds but don’t forget to research before you decide which one is the best. Invest and have a better future.

Investing for Retirement

Thursday, August 28th, 2008

You have to invest for your retirement. It may be a long way off for you right now or it might be right around the corner.  No matter how near or far from retirement, the best thing to do is to start saving for it now.

Retirement plans during the past years are quite reasonable and people are attracted to what the company is offering.  But due to some economic situations, the people who want to retire have to think twice before they decide to invest in the company’s retirement plan.  They must have other things in mind.

If you are planning to invest for your retirement, you can invest in stock, bonds, and mutual funds, certificate of deposits, treasury bonds and money market accounts.  Let your money grow overtime and when your investment reaches their maturity, reinvest it again.

There are also other options available.  You could open an Individual Retirement Account (IRA).  This is quite popular because the money is not taxed until you withdraw the money and this can be opened at most banks.  A ROTH IRA, this is a new type of retirement account.  You have to pay taxes on the money that you are investing in your account, but when you cash out, there will be no federal taxes owed.  This can also be opened at a financial institution too.

401(k) is another type of retirement plans being offered through employers.  You could also open a 401(K) on your own.  To enlighten and help you in this matter, consult a financial planner or an accountant.

Keogh plan is another type of IRA that is suitable for self-employed person. This is a Simplified Employee Pension Plan (SEP) that people find it easier to administer than a regular Keogh plan.

All of the above are very inviting but you have to make sure of your choice. Do not depend on company retirement plans, social security, insurance or even inheritance.  Take care of your financial future by investing.