How To Invest Money Wisely

Posted by Mcquiston on July 6th, 2021

Coins can be great investments if you invest correctly. Bonds can also be safe investments if you get a strong company. It's difficult to compare coins with bonds because there are many good bonds and many bad bonds out there. But we can still compare apples with apples and view the benefits and costs on the same playing field. We just need to compare specific key points between coins and bonds.

Married couple with adolescent or independent children, aged 40 to 60 years. Focus: Medium-term investments, medium risk. Emphasis: capital gain, compound growth.

Why is diversification good? If you had your money tied up in traditional investments asset such as property, stocks, bonds and cash then you are likely to have done poorly over the last few years. The stock market has performed poorly for even longer as it is lower than it was 10 years ago. Even if you hold cash it is likely to be losing its value in real terms.

Have a plan. Always ensure that you or your financial advisor draws up an appropriate investment strategy for you that incorporates your risk profile, timeframes and financial goals. As foolish as it seems, many people plunge headfirst into investing without thoroughly working through these fundamental issues.

What do experts predict will be a "safe" amount of money to withdraw from your investments, without creating future problems for you? 4 to 5% is the consensus. That's right; we went from feeling good about taking 8% withdrawals out of our investments to now only taking 4 to 5% and feeling safe about it. Why could this be? It's simple really; equities are not ever going to give you a straight 8 to 10% rate of return.

04. Study and be knowledgeable about investing. You must know whether you are investing to share profits or to share in dividends if declared and or for some other benefits. All these must be clear in your mind before you invest.

Stay with the traditional and known. As described in this chapter, the best and surest investments are fixed interest, property and shares. Work out the optimum mix for your investment profile, have a safe plan to work with and you can't go wrong.