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By: Ikedi Ani-okoye.
Dollar cost investment
Dollar cost averaging allows young investors to purchase stock investments consistently over a longer period of time. This stock market strategy works especially well with broad-based market index investments like the mutual funds and ETF's that mirror the return of the S&P 500. This powerful and simple investment plan will help lower risk and you have the potential for higher returns.
Property investment
Investment in property is seen as one of the best ways to earn money from your existing capital, with stable yields year on year. But why is it that property is such a worthwhile investment, and isn't investing in property tying you down and your money up in bricks and mortar?
Investing in property can be a very beneficial endeavor. Working around basic accounting principles, the property you acquire is a capital asset, thus hopefully increasing your overall net worth.
Investing in property also has the added bonus of allowing you to grant charges and standard securities against borrowing, over a property that isn't your home.
Stock investment online
Ever since stock investment was introduced, traders used to visit clumsy and 'fish market' like stock market, where they needed a broker to accompany them for trading in stocks. But, as time goes by, a technology has proved to be a turning point in the stock trading and so does it has affected the perception about the stock market. The introduction of online investment has aroused just like a hero that is going to stay for long. Rather saying that online trading has totally transformed the world of stock trading would not be an understatement.
Retirement investment
Most people work a lifetime to save enough so they can have a comfortable retirement - the last thing in the world they want is to lose their retirement nest egg in bad investments. So why is it that most retirees have all their money in mutual funds, stock, bonds, a diversified portfolio of securities, variable annuities, etc.? All these things carry the risk of loss - yeah I know that "in the long run" you'll do a lot better than with a safe money alternative. BUT, in retirement you don't have a long run. A great economist once said, "in the long run we're all dead".
CONCLUSION
Each year that you have money and are not investing you're loosing about 3% of its value due to inflation. So after 10 year of sitting on $100 cash it could be worth less than $75. What's more, by investing young you benefit because the money you made from your investments - make you more money. Making money from money you've already earned from your investments is known as 'compounding interest'. This powerful force can make you a millionaire well before retirement age with saving as little as $70 per month.
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