This is a simple line on Investment – - The world works for Money while the rich make the money work for them.
Why Invest ?
Money works for a man only when it is invested. Invested appropriately. Move out of the 401K, Bank Bonds etc. There is an element of risk that needs to be taken for investment to be beyond the rest of the world. Only a few make it to the top and the only essential difference is that they take the extra risk. Not bothering about the loss off money out of the risk but aiming to multiply the money which is being risked. That differentiates any rich man from an ordinary man.
How Much do I invest and what do I get ?
It would be very appropriate to estimate what a small investment in risky security can do. A $100 invested every month in a risky security giving an average of 15% per annum (rate is high considering the risk involved) can make a Million Dollars in 17 odd years and a $200 invested in the same could be 13 odd years. So imagine if one starts investing straight away $200 at the age of 21 when he starts earning, he could retire at 41 years (i.e 20 years of working) with a whooping $3 mils and if he works for 30 years till the age of 51, the same amount would be $14 mils. And remember all this is by investing only $200 PER MONTH. This amount if higher could be a huge huge money, thereby confirming a berth in the Millionaire club.
When to start ?
There is no right time to start for this. Ideally the earliest possible time would be the best. Man with wisdom would be starting the day he starts working. The later the start of investment, the lesser would richness quotient.
Where to invest – - – 3 key avenues
1. Equity Market – - This is the area where the whole world invests. One would be advised to invest post a consultation with the expert as the probability of loss is quite high. But as mentioned earlier, it is this probability of loss being high, pulls more and more people into this market with an expectation of very high returns. Remember – - We are talking about investment and not about gambling. This has to be methodical and with adequate expertise or through appropriate consultation.
2. Mutual Fund – - This is the second area and does away with the shortcoming of above and maintains and delivers at the rate as much as equity market delivers. This because the funds invested in the mutual funds are reinvested in the equity market by experts/professionals.
3. Commidities – Metals – - This is another choice of investment. Commodities are always required and does not depend on any management and will continue to be demand. A perennial demand would mean a continuous increase in the price.
Would advice to take appropriate consultation on each of the above three avenues.
Where to Start
You have here a basic road map to start your way to wealth, but you might be confused on where to start now that you have these basic concepts on investments for beginners.
We highly recommend you to have access to the FREE webinar by Mike Dillard and his team to keep learning really good tips about how to invest your money. What better way to learn than in a webinar by the best experts in the world?
Thank you for reading “3 Investments for Beginners“.
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