Investment tips are often the simplest ones - and yet, it's
amazing how many people overlook the basics.
Understand
why you want to invest
Investment is not an option it is a necessity. People do
investments to meet their financial goals. Everybody has their own personal
financial objectives of life.
Investing is a way of using money to make more money. Investment
purpose mainly centres on financial security since you cannot be assured that
you will be able to work forever, and more people don't want to. It is a way of
making sure that even after retirement you still have a source of income that
will sustain your way of living. There are risky as well as risk-free
investments, and with any investment where risk is involved, you'll either
loose or gain money.
There are many types of investment that you can choose from, and
one example is stock investment. Investing in stocks is preferred by many people
because it may give higher returns much quicker when compared to bonds and real
estate. If you hold a stock for a year or more before you decide to sell it,
instead of paying your standard rate, you'll only be taxed 15% which is a long
term capital gains rate. It is also easy to diversify provided that you invest
in a variety of stocks. This way, it will not create a very big impact if only
some of those investments go down.
