|
  |
|
|
Understanding Your Investment
By Dan Carter
You may have been caught off guard with your investment being locked in the market in the current melt down. You were very pleased with your 401K. Now you are left with a NO-01K. All the talk about the greatest passage of wealth has been wipe away. While sympathizing with those who view financial education as a task better treated as and elaborate exercise, I don't see any solutions to learning. People who know nothing about investing and always depending on "professional advisors" to hand-hold them through all their transactions are simply like lambs to the slaughter, asking to be fleeced. In the long run, an individual is the only person ultimately responsible for their own financial situation. An investment is a choice made by individual, after thorough analysis, to place or lend money in a vehicle,
it still a good idea to learn to manage your investment money to grow your net worth even in these troubled economic times. Do not make the big mistake of failing to understand that investing is more than just one aspect of your financial future. People often seem to misunderstand with there thirst to try their hand at investing before they get the rest of their financial act together. What I referring to is falling prey to the quick fortunes for seeing buying a celebrity stocks and raking in quick profits. First the individual creates durable consumer goods, hoping the services from the good will make his life better. Many "beginning investors" have no fundamentals understanding of how the markets works. No money management skills and the difference between money management and investment good overall money management. Second the individual becomes an entrepreneur using the resource to produce goods and services for others in the hope of a profitable sale. Budgeting, purchasing, insurance, taxes, estate issues, and investing backgrounds from which to build a personal framework.
Third working with investments, that has sufficiently low risk and provides the possibility of generating returns over a period of time. Placing or lending money in a vehicle that risks the loss of the principal sum or that has not been thoroughly analyzed is, by definition speculation, not investment. Fourth describes an investor in a share of the business.
Rather than store the good produced or its money equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the original saved good to another in exchange for either interest or a share of the profits. The basic meaning of the term being an asset held to have some recurring or capital gains. It is an asset that is expected to give returns without any work on the asset per se. The empowering of the mind to be in control of your finances instead of being control by them. The fundamental to learn investing is more than opening a brokerage account and watching the return mount up in your account. To build all the basic building block to have a well rounded financial plan. But if you really stop to ponder the role of insurance, you'll quickly realize that it's theoretically one of the most important purchases you make because it protects your other investments. For example, if you did not purchase health insurance and found that you had to undergo major surgery, you would be responsible for the hospital and doctor bills on your own. Most of us faced with this situation would have to tap into our investments and, in a worst-case scenario, could end up unable to meet our financial obligations and lose our precious assets. Insurance is a type of investment that anticipates adverse events and mitigates or even eliminates the potential consequences, which can range from inconvenient to financial ruin. Only after that should one explore particular investments. If someone needs to unload some cash in the meantime, they should put it in a money market fund, or yes, even a bank account, until they complete their basic training.
|
|
 |
|
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "Understanding Your Investment" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
