Knowing needs for investment
Saving your money in the bank is certain loan to keep your money stable. It save, however you only get what your savings and inflation reducing selling aspect.
Dollars value has been cut in two in the past 20 years. You need money that growth-that is investment, let your money works for you.
unlike gambling, it is working for long term-in the past 100 years, Australian share market has return after having 7,5 percent of inflation, compare to 1,4 percent from bonds(fixed interest)
Where to earn money
Fourth main assets-cash, property, steady interest and stocks-have their positive and negative depends on the investor.
Cash can be apply for an emergency situation, unlike property which have awkward situation to sell but able to bring tax concision
Terms interest guarantee refunding the stocks inflation, while stock in corporation who pay regularly dividend and pension investment, were invest in shares with increase value, it fit for investor who want to invest for their retirement investment.
The power of time
Investing is one of ways to be surely rich’s it will be wise for you to start immediately, the sooner the better-stocks in commonwealth bank has been developing for the past 20 years from $2,50 to $50.
The road can be complicated, with stocks and property value that goes up and down, not always at the same moment, differsification approach is needed in the main assets for new player. And investor can rebalance for the short terms and long terms purpose with the investment plan.
Develop you risk appetite
You can’t avoid the risk taking-not even when you save your money to the bank you will lose value for time to time with the increase of your living cost. The higher stakes more risk involving.
Risk for loosing your money-or unproductive as many you want, so it is important for the investor to revalue the risk.
People have different point of view to value their risk. Time horizon is relevant-stocks and property have more risk than the short terms interest, however it is better in long terms. Time market is important-strangely the investor didn’t buy if the stocks were down they often buy when the stocks were apathy is due for they afraid with what they might lost.
Take your first step
Investor novice with amount of $1000 or more can spend investment fund they manage without professional advice. Use little investment but ask advice to professional so you can gain profit. Share your profit each year.
The funds are designed at various risk levels, from conservative to balance to growth to aggressive. Investment companies listed on the stock exchange are also professionally managed, and can have low fees and more tax flexibility.
Starting a long term relationship with a stockbroker is another good step on the road to becoming a successful investor.