Posted in Community :
Sultans of NSE
|
||
|
Source : http://ezinearticles.com
Activity:
4 comments
942 views
last activity : 12 28 2010 06:36:07 +0000
|
||
|
|
Investors generally struggle with three questions. "Where should I invest my money? Why are my investments not performing? "How can I beat inflation on a consistent basis?"
The reason these issues crop up is mainly because most of us do not go through the process of analyzing our investment needs in a proper manner.
There is general tendency to follow a haphazard approach to investing. Done rightly, investments should never be an issue.
Rule #1
Most people, when they retire, have most of their net worth tied up in their own home. So, the first, and most important way to invest your money is to buy your own home. If you already have a home, buy a rental property. It is realistic that most people can own several houses free and clear through a lifetime of disciplined effort.
Rule #2
When people retire, their next most important source of money is either a 401k, 403b, IRAs, and even annuities (which aren't that great). The bottom line is to put at least 10% of your gross salary into a 401k, 403b, or IRA. Look at the taxes because it is not always in your best interest to max out the 401k. Sometimes it is better to have a combination of IRA and 401k.
Rule #3
Get some good health insurance. Better yet, stay healthy. Health care costs are ridiculously high. Most people spend an enormous chunk of their savings, in retirement, on health care. An operation can set you back a hundred thousand dollars, or more. Many people who are pretty well off become destitute from medical problems. In some cases, Medicare will force you to sell your home and give them the money or you can't receive treatment.
Rule #4
Open an account with a discount brokerage firm. They have brokers that will help you with financial products. Some of these discount brokerages are available 24 hours a day. They do not give recommendations, but can explain the products quite well. The fees there will be much less than full service brokers. It is here you will get access to retirement calculators, investment research, IRAs, mutual funds, and lot of other things. If you are new to investing, you can learn a lot just by reading the articles on one of these sites.
Rule #5 : 90% Rule
If you own your own home and put 10% of your gross income into your retirement account we have found that 90% of people will have enough money to make ends meet. The biggest unknown factor, in this case, are medical bills. Medical problems leave more people destitute than any other.
Whether or not you decide to opt for professional help, don't make the mistake of waiting. There are many investors who delay the process of investing either because they fear choosing a wrong investment option or think that they do not have enough money to start investing.
Remember, investing is a process, not a 'one time activity'.
By investing regularly over a period of time, one can build up capital as well as reduce the impact of short-term volatility made by one-time investments.
The reason these issues crop up is mainly because most of us do not go through the process of analyzing our investment needs in a proper manner.
There is general tendency to follow a haphazard approach to investing. Done rightly, investments should never be an issue.
Rule #1
Most people, when they retire, have most of their net worth tied up in their own home. So, the first, and most important way to invest your money is to buy your own home. If you already have a home, buy a rental property. It is realistic that most people can own several houses free and clear through a lifetime of disciplined effort.
Rule #2
When people retire, their next most important source of money is either a 401k, 403b, IRAs, and even annuities (which aren't that great). The bottom line is to put at least 10% of your gross salary into a 401k, 403b, or IRA. Look at the taxes because it is not always in your best interest to max out the 401k. Sometimes it is better to have a combination of IRA and 401k.
Rule #3
Get some good health insurance. Better yet, stay healthy. Health care costs are ridiculously high. Most people spend an enormous chunk of their savings, in retirement, on health care. An operation can set you back a hundred thousand dollars, or more. Many people who are pretty well off become destitute from medical problems. In some cases, Medicare will force you to sell your home and give them the money or you can't receive treatment.
Rule #4
Open an account with a discount brokerage firm. They have brokers that will help you with financial products. Some of these discount brokerages are available 24 hours a day. They do not give recommendations, but can explain the products quite well. The fees there will be much less than full service brokers. It is here you will get access to retirement calculators, investment research, IRAs, mutual funds, and lot of other things. If you are new to investing, you can learn a lot just by reading the articles on one of these sites.
Rule #5 : 90% Rule
If you own your own home and put 10% of your gross income into your retirement account we have found that 90% of people will have enough money to make ends meet. The biggest unknown factor, in this case, are medical bills. Medical problems leave more people destitute than any other.
Whether or not you decide to opt for professional help, don't make the mistake of waiting. There are many investors who delay the process of investing either because they fear choosing a wrong investment option or think that they do not have enough money to start investing.
Remember, investing is a process, not a 'one time activity'.
By investing regularly over a period of time, one can build up capital as well as reduce the impact of short-term volatility made by one-time investments.
TrackBack URL:
4 comments on "Best Ways To Invest Money"
Sort by:
Most Recent
Top Rated
Commented by
Parag Shah, Employee, Rikhav Infotech, Mumbai
| 12 28 2010 06:36:07 +0000
Report Abuse
Not Rated
Commented by
jade smith, Consultant, rikhav infotech
| 10 28 2010 11:52:18 +0000
Report Abuse
Not Rated
Commented by
Nancy thomas, employee, info tech
| 09 08 2010 06:18:40 +0000
Report Abuse
Not Rated
Commented by
varsha mishra, Analytical Chemistry Manager, rfrac
| 10 28 2008 05:40:07 +0000
Report Abuse
Not Rated
Found the article
"Best Ways To Invest Money"
interesting ?
Share with your connections and communities
Top recruitment firm for IT/ITES jobs
- Create a confidential Career Profile and Resume/C.V. online
- Get advice for planning their career and for marketing of experience and skills
- Maximize awareness of and access to the best career opportunities
Viewers also viewed
|
|
On one hand where Moody's downgraded the outlook on India's banking sector to 'negative' from... |
|
|
918 referals
14 arguments,
363 views
|
|
|
Prime Minister Manmohan Singh said that there is "no instant solution" to bring back black money... |
|
|
823 referals
26 arguments,
386 views
|
|
|
Requirement is to earn money by working from home |
|
|
0 referals
4 answers,
309 views
|
|
|
|
|
|
|
Recent Knowledge (42)
|
|
HRA stands for House Rent Allowance, it is an allowance provided by an employer to an employee.... |
|
|
235 referals
7 comments,
3225 views
|
|
|
NANDKUMAR B.SAWANT.,M.COM.LL.B.(MUMBAI),ADVOCATE MOBILE.09325226691, 09271971251... |
|
|
24 referals
17 comments,
11573 views
|
|
|
I reckon the lines said by a sensible person in the past that a person cannot be deceived unless... |
|
|
16 referals
3 comments,
372 views
|
|
|
|
|
Sponsored Jobs
More From Author
According to me, the volatility in USD/JPY in the recent times has fallen to the lowest level since October. As risky assets, the yen crosses and other high yielding currency pairs are very sensitive to the level of volatility in the foreign exchange... |
The marketer should concentrate on the core brand or products. He should market only those product or brand which are likely to survive during the recession. And not spend anything on the product that will sink/die ( because spending time and money in... |
The global financial crisis has hit Indian stock markets hard. This painful erosion of investor wealth and confidence is not the only fall-out in India of the global panic. The rupee has been depreciating rapidly against the US dollar, owing to... |