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To invest wisely, you must have an appropriate investment plan to ensure that the appropriate amount of growth for you. Your investment will be safe and easy to manage. Developing an investment plan: The first step in developing an investment plan is to identify what type of investor you are. types of investors are often determined by the stages of life. Here’s a guide: - A single person under 40 years. Focus: Long-term investments, medium to high risk. Emphasis: capital gain, compound growth. - Two-income married couple without children, aged 20-40 years. Focus: Long-term investments, medium to high risk. Emphasis: capital gain, compound growth. - The family on one income, young children, aged 20-40 years. Focus: Long-term investments, low to medium risk. Emphasis: compound growth. - A single person aged 40-60 years. Focus: Medium-term investments, medium risk. Emphasis: capital gain, compound growth. - A married couple with children or adolescents independent aged 40-60 years. Focus: Medium-term investments, medium risk. Emphasis: capital gain, compound growth. - All investors, aged 60 and over. Focus: Short to medium term investments, low risk. Emphasis: Income. The following are examples of portfolio investment mixes for different types of investors. Low-risk investments: low-risk investments are mainly cash, fixed interest and retirement. It has the lowest risk of all investments, but also the lowest return - in today’s market, about 3% to 6% per year. Fixed interest includes cash, trusts and cash management requirements. They amount to about 5% to 10% per year, sometimes more than 15% if you invest in global bonds in good markets. Returns the pension and risk profiles vary from institution to institution, however, the most safest and most often return an average of 10% per year. Investments at average risk: medium-risk investment property and shares not speculative. diversified funds, which invest in a range of asset groups, are also considered risk profiles in the medium term. average cost of these types of investments ranging from 8% to 15% per year. I also like to include the wide range of mutual funds, which will be discussed later, in the range of medium-risk investments. Some can return up to 25% or more by fund type and managers. High-risk investments: high risk investments include all speculative shares, futures and any other type of investment that is purely speculative in nature. Because with these types of investments, we’re betting on whether prices will go up, sometimes down, I often classify it as a form of gambling. Consequently, yields are unlimited but it is also the possibility of losing money invested in total. The basic rule for investing in stocks is highly speculative building in “sell-out ‘thresholds, three up and three down. For example, if you buy a stock at $ 20. 00 per share, your sell thresholds out could be: Exemplary threshold of 3 million 30. 00 Exemplary threshold of $ 2 25. 00 Exemplary threshold to $ 1 22. 50 Buy $ 20. 00 Exemplary threshold to $ 1 17. 50 The threshold for triggering the $ 2 15. 00 Out threshold 3 $ 10. 00 Every time your stock reaches a threshold levels, you sell one third of your stock. If the stock starts to rise, you sell one third to $ 22. 50, then another third at $ 25. 00 and so on. If the stock starts to fall, you can also sell third to $ 17. 50, then another third at $ 15. 00 and the third to $ 10. 00. This way, you never lose your money, but you also put a cap on the total profit you will make the investment. This is what I found to be the best and safest way to invest in speculative stocks. In 1987, my husband and I were saved from severe loss of the collapse of Wall Street because we were really on the market by taking our profits beforehand. Like all systems, this strategy works only as long as you respect the rules and not too greedy. Mutual Funds: Mutual Funds are a selection of investments that are professionally managed by a financial institution or organization. These institutions have a wide range of specialists, researchers and advisor who devote their time to ensure that the fund invests in the best companies and assets. In addition to the advantage of having experts manage your investments, managed funds also give you the opportunity to invest in a wide range of shares, property or fixed interest markets, either locally or at the abroad, so that small an expenditure of $ 1,000. In the latter case, they also require a savings plan where you agree to deposit additional capital of at least $ 100. 00 per months. Because managed funds to cover the spectrum of risk profiles of investment, you can easily cover your preferred investment portfolio, as described above, by investing in several different funds. The constitution of your program of investment: After identifying the type of your investment, you must either get a good financial advisor or devote your time to research investment options. Shares have always outperformed other asset groups over time. However, equity markets may fluctuate widely in the short term, so that any entry should always be done with a long-term up to 10 years. Even the best managed equity funds can fall if the stock market crashes or severe downward cycle. Until you are sure you have a fund with a reputation for good managers and are ready to surf the waves, your investment will do well in the long term. If you are short term, low-risk category, so your investments should be in the safest, most stable areas with lower yields. Rules for Investment: Investing may seem daunting to many people. Maybe you’ve tried once and failed, or perhaps you are simply afraid of losing your money. To avoid losing any capital, simply be aware of the main pitfalls and always avoid them. The simple and reliable rules for investing are: 1. Have a plan. Always ensure that you or your financial adviser establishes an appropriate investment strategy for you that incorporates your risk profile, timeframes and financial goals. As crazy as it seems, the headlong plunge of many people to invest heavily, without work through these issues. 2. Do not put all your eggs in one basket. obvious advice, but many people fail to follow. Many people think they are on track to pay financial mortgage on their family home, then buy another property investment purposes. Think about it! You put all your eggs in one basket financial assets - property. What happens if the housing bust? Despite common thinking that it is a safe way to invest, the outcome is very risky. You have invested all your tax dollars in a single domain. 3. Building in a timely manner. There is an old saying, “When the tea lady starts to invest in the stock market, it is time to leave.” Which means, when the share market is so high that everyone starts to climb aboard, it has probably peaked. There are two ways to successful investment timing. The first is to always choose the lower-end market to buy and upscale market to sell. This is extremely difficult to do. Even experts the best informed are struggling. The second way is to choose the right investments and stay with them long term (10 years or more) and ride the waves of the market. For safe, easy investing, choose the second method. Do not buy in the upscale market and sell once it starts to fall. You’ll probably lose money this way. 4. Avoid high risk investments. These include business ventures, highly speculative material, tax evasion or proposals too good to be true that promise unusually high returns. 5. Avoid borrowing for your investments. While some financial advisors advocate ‘gearing your investments, it can be fraught with danger. Gearing afford to borrow. If borrowing for investments you takes your fixed margin of 40% of the costs, you cut it too fine , especially if you lose your level of current income. 6. Stay with the traditional and known. The best interest and the surest investments are fixed, property and shares. Although all classes of assets will change over time. Work out the optimal combination of your investment profile, a security plan to work with and you can not go wrong.