1. Know your current financial situation. Know you debts level. Calculate your income and expenses by taking into account the following:
Mortgage repayments
Personal tax
Loans and overdrafts
Living expenses
Emergency funds
Car expenses
Entertainment
Holidays
School fees
Credit card debts
Family commitments
Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rainy days. 10% is a small amount that you won't feel a pinch. Save it until you have managed to build a "dam management funds".
2. Prepare funds for dam management. This goes in line with point 1. You need to keep at least 3 to 6 months of you income as dam management. After you have managed to do that then additional money that you saved can be used to invest.
3. Protect yourself and your family first. By this point, I mean you should have the basic life insurance that insure you and your family against terminal diseases and accident. This is very important as even though you might loose all your money through investment and if you or your family members need medical attention, it will be well taken care of.
4. Know your risk level. If you are not able to take big risks, short term investment and swing trading is not for you. It's better to invest in mutual or trusts funds which will give a steady payout and have lower risk.If you are a high risk or medium risk taker, you can try invest in stocks, growth and hedge funds.
5. Diversify your investment. Expert would tell you it is a must to diversify your investment. Your investments need to have a steady mix of stocks, mutual funds and/or bonds. Beside that, your should invest in different industry and/or different regions. This will help you minimize your risk as fluctuations in the markets will not have a big impact on your investments. Your ideal mix will be 20-40% stock and the rest mutual funds and bonds.
6. Do your homework before you invest. It is good to seek expert advice. But, the money is ultimately yours. So you need to do some research and make a sound decision on what to invest even though your financial advisers might have already worked it out all for you. This is to make sure you know what you are investing and able to keep track of them. If your investments suffer loses you will be able to make a right decision whether to sell or hold if you know your stuff well.
7. Do stock take yearly if not frequently. Your investment might already be reaping in profits. But, it is good to know how well you fare at the end of the day. Reinvest the profits and celebrate if you have success. This will serve as motivations for you and will make you more determined to achieve your financial goals.
Brought to you by: National Access Long Distance
Copyright 2006 Jason Chew
National Access Long Distance
Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts
Friday, November 29, 2013
Monday, November 18, 2013
Financial Planning For Retirement: For Worry-Free Retirement
Planning can be a tedious activity especially if you are planning for retirement. Many people realize how advantageous financial planning for retirement can be while others find it mysterious.
In fact, most experts say that for people who are only making enough money to make due payments in each month, then it means that they should start contemplating on how they can still make money even if they are already retired.
Surveys show that almost 75% of the American population is earning enough money to pay their monthly bills. This means that they do not have any extra money to put in a bank or in any financial institution that could provide them enough profit after their retirement.
What's more Social Security is not enough guaranteed income for retired people to live on. Actually, it is still a big question if one’s Social Security will still exist when the retirement day comes.
Hence, it is extremely important to generate some methods that will provide an individual a reasonable amount of money in the future. This should be done regardless of how much an individual earns, the important thing is to start saving today.
1. Visualize and calculate
It is important for a person to visualize his or her own situation after retirement. Then, you can calculate how much money is needed to live on after retirement. Furthermore, people need earnings that compensate 75% of the present amount that he or she is expected to take home.
2. It is important to seek the help of a financial planner or any person competent in financial planning.
By asking for advice from the experts, you will be able to gain more knowledge know how to proceed for you situation. These people are proficient and knowledgeable in all kinds of financial planning and they can provide the most feasible and workable approach for your individual needs.
3. Get rid of loans, debts, and other financial obligations in as little time as possible.
By simply paying off all debts, loans, and other financial obligations in a shorter period of time, you can realize a substantial amount to invest for that retirement. A good financial planner will know exactly how to direct you so you can meet your retirement goals.
Plan for your future with your landline. The landline is a great way to communicate with keeping your finances in mind. Save money on your long distance bill with National Access Long Distance.
In fact, most experts say that for people who are only making enough money to make due payments in each month, then it means that they should start contemplating on how they can still make money even if they are already retired.
Surveys show that almost 75% of the American population is earning enough money to pay their monthly bills. This means that they do not have any extra money to put in a bank or in any financial institution that could provide them enough profit after their retirement.
What's more Social Security is not enough guaranteed income for retired people to live on. Actually, it is still a big question if one’s Social Security will still exist when the retirement day comes.
Hence, it is extremely important to generate some methods that will provide an individual a reasonable amount of money in the future. This should be done regardless of how much an individual earns, the important thing is to start saving today.
1. Visualize and calculate
It is important for a person to visualize his or her own situation after retirement. Then, you can calculate how much money is needed to live on after retirement. Furthermore, people need earnings that compensate 75% of the present amount that he or she is expected to take home.
2. It is important to seek the help of a financial planner or any person competent in financial planning.
By asking for advice from the experts, you will be able to gain more knowledge know how to proceed for you situation. These people are proficient and knowledgeable in all kinds of financial planning and they can provide the most feasible and workable approach for your individual needs.
3. Get rid of loans, debts, and other financial obligations in as little time as possible.
By simply paying off all debts, loans, and other financial obligations in a shorter period of time, you can realize a substantial amount to invest for that retirement. A good financial planner will know exactly how to direct you so you can meet your retirement goals.
Plan for your future with your landline. The landline is a great way to communicate with keeping your finances in mind. Save money on your long distance bill with National Access Long Distance.
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