RP Wang Investment

Investing can be confusing for beginners. You may not know where to start from, how much to invest, and things like that. At the very least there are two important points to remember when you are planning to invest.

(1) Understand your goals

What are your expectations from the investment. This will also help you in determining what investments to be made and money to be put in.

(2) Make informed choices

Play it safe! Before investing, you should know every detail of your investment. Understand how your transaction will work. Do some research before you plunge in.

To get you start safely, I have added some more tips:

(1) How much to invest

A very important parameter. This determines the best investments for you and the best method of investment-whether appointing an investment advisor or doing it yourself.

(2) Diversification

One of the major factors that can influence how successful your investments are is diversification. Basically, diversification is the process of investing in several different types of investments, and in several different types of industry sectors. A diverse investment portfolio might contain stocks, bonds, and indexes, and will have money invested in several different sectors and industries instead of just one. This allows your investment portfolio to stay relatively level, regardless of the periodic dips in value that companies and sectors tend to take.

(3) Risk analysis

Share market is extremely volatile and they carry inherent risks. Market patterns are the result of the cumulative effect of several cycles. You should do some research on the performance of shares in the past and study the patterns. Although there still is no guarantee but at least this may help you in making wise decisions.

By: Primrose Gandhi

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Looking for great investment advice? Here’s what you must know: Is your prospective investment advisor in the day to day business of actually making money? If not, the advice you get will probably not be very helpful and could get you in trouble. But that’s just the tip of the iceberg. Read on for more questions you need to ask.

After all, investment advisors come in many flavors: insurance salesmen, stock brokers, financial planners, and so on. They offer advice from real estate investing to estate planning. That’s the reason why, if you are truly seeking “Investment” advice, you need to find someone who actually understands how to make money by investing.

That someone should not be your relative. And you definitely shouldn’t base your investment strategies on a tip from a friend. Instead, find someone who is well educated in financial matters, properly credentialed, and, most importantly, works on a fee ONLY basis.

Why fee only? Because either way, an advisor’s income is directly tied to their advice. You want to make sure that they will benefit from giving you advice that benefits you, not advice that benefits them.

An advisor who works on a fee only basis will have the primary objectives not to lose portions of your portfolio and to take the least amount of risk for a required rate of return. And believe it or not, if you work with a Registered Investment Advisor (fee only), he or she will have a fiduciary responsibility to YOU.

Most other advisors work for a commission. That means, that they will always have their eye on how much commission they will earn, which creates a built-in conflict of interest.

Of course, it is up to you to find, investigate and understand how your prospective advisor works. Specifically, how are they going to manage your money…

If you have invested for any length of time, you already know the difference between stocks, bonds, mutual funds and annuities. But what you might not know is which types of investments are truly best for your particular circumstances.

And whether you pay your advisor directly versus whether your advisor earns commissions for your investments will make a huge difference in what ends up in your portfolio. You should always ask them about their “investment philosophy” i.e., how would they manage your money?

Fee-only or not, there are a number of approaches to investing money. Many investment advisors believe in Modern Portfolio Theory and Asset Allocation. Some are strategic or tactical advisors, while others yet use fundamental or technical analysis.

Yes, that’s quite a bit of jargon. I would not expect most people to know the intricacies of each method. But what you should know and ask is what type of system they use.

Just ask straight-forward questions such as the following: “What if my account value drops — how would you protect me?” “Given a target rate of return, how much risk am I taking and how do we measure that?”

And here is the most important question of all: “How will you get paid?”

Of course, there are many more questions you can — and should — ask, but these will get you started. And the purpose of those questions comes down to this: You need to understand and feel comfortable with your investment advisor’s philosophy.

By: Steven Floyd

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Recent studies suggest that the amount of people jumping on the investment property bandwagon is set to rise over the next six years, due to the 2012 Olympics. As with the many other benefits brought about by London’s hosting of 2012 Olympics, this predicted increase in investment property will not just affect London but all major towns and cities in the UK. So what kind of benefits can investment property afford?

Stability in Investment Property

Whether you are a first time buyer set to buy your own home or an influential investor looking into investment property the benefits which the investment in bricks and mortar afford, should not be underestimated. Although taking risks on the stock exchange may yield higher returns, investment property can provide you with a stable, steady income and a relatively secured level of return on investment. When looked at with a long-term view the investment property is unlikely to ever lose you money. You may have to pick the right time to sell a property but as long as you keep looking at this investment with a long-term view you will be hard pushed to go wrong. Put simply, property is historically stable and if you are prepared to wait it out you can make money on it.

Financial Gain

If you do your homework and consider your investment property as a long term investment the financial gains to be won through investment into property are fairly substantial. In short, one of the most significant benefits with regards to investment property is that as long as you have a bit of free capital you are able to borrow money from the mortgage lenders, in order to buy a property which you can then let out and charge tenants money in order to pay back the mortgage lender. In affect you become a middleman who is set to earn a good return on investment as long as you decide to follow a few basic steps.

Return on Investment.

Studies suggest that, on average, a home doubles in value every seven years and whilst this is not guaranteed as long as you have the property correctly evaluated and you buy in the right area you can feel certain that you are making a good, financially sound investment. This means that if you have a lump sum of money which you are interested in investing then Investment Property is certainly a type of investment worth having a look at.

By: Elizabeth Grant

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How can you make sound investment decisions when you don’t know investment basics?  How can you pick investments that are appropriate for your circumstances when you don’t know what your basic alternatives are?  Relax, I’m going to simplify the big picture for you.

In my mind’s eye, I place all of the investments in the world into one of four categories, commonly called asset classes.  Let’s say you inherit $100,000 and you want to invest it, but you do not understand investment basics.  How do you start your search for the best investment(s) for you?  Start here, by first narrowing your choices down to four.

CASH EQUIVALENTS and FIXED ACCOUNTS…for money you need to be safe.  If you need ready access to your money put it into cash equivalents, commonly called just CASH in the investment business.  Examples include bank savings accounts, T-bills, and money market mutual funds.  These investments offer high liquidity, and pay interest.  You can get your money back quickly and easily, without penalties for early withdrawal.

If you want to earn a higher interest rate and do not need super liquidity, look into fixed accounts.  These are also safe investments, but may have penalties for early withdrawal.  Examples include bank CD’s, U.S. Savings Bonds, and fixed annuities.

BONDS…if you want to earn higher interest income than you can get in cash or fixed accounts.  The value of a bond investment will fluctuate, so there is risk here.  Examples include U.S. treasury bonds (not to be confused with savings bonds), corporate bonds, and municipal bonds.  Bond mutual funds are available to fit most any bond investor’s needs.  By investing in them you own part of a professionally managed portfolio of bonds.

STOCKS…for growth.  If you are willing to accept risk in search of higher investment returns, stocks, commonly called EQUITIES, deserve your attention.  Average investors basically make money in stocks two ways: through price appreciation, and from dividends.  In other words, stock prices can go up, and many stocks pay income in the form of dividends.  If you invest in equities be sure to diversify, don’t put all your eggs in one basket.  You can pick your own stocks, or you can get instant diversification by simply buying equity mutual funds.

COUNTERBALANCE INVESTMENTS…for growth and to offset loses in stocks, and perhaps bonds.  I view this fourth category as a broad asset class.  Included here would be tangibles like real estate, gold and silver, and other commodities.  In times of rising inflation, for example, bonds and stocks can both be losers.  Smart investors keep an eye open for assets that benefit from rising prices.

Basic materials like iron, copper and aluminum fall into this last category, as do natural resources like minerals and oil.  There are various ways to invest and keep it simple here.  For example, you don’t need to select, buy, and manage real estate properties to profit from rising real estate values.  You can simply buy real estate stocks or mutual funds that invest in equity REIT’s (real estate investment trusts).  If the price of oil is going up, you can profit from buying oil stocks or mutual funds that invest in them.

If you want to be a long term investor with a well balanced portfolio, give consideration to all four of the asset classes just discussed.

There you have it…all of the investments in the world in a nut shell.  With these investment basics in mind, it’s only a matter of getting specific within each asset class.  Notice that there are mutual funds to fit your needs in all four investment categories.

By: James Leitz

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