Three Options for the Best Investment Period

Three-Options-for-the-Best-Investment-Period

Three Options for the Best Investment Period – If we talk about arrangements, finance is throwing away the slogan, “live for today.” The slogan is only for those who are careless and feel irresponsible of what will happen in the future. For those who want their financial life to be fine and well-planned, then they should start the test, “live for today, tomorrow and beyond.”

Maybe right now you are still in good health, with positive finances, where your monthly salary is greater than your monthly expenses. In these conditions, you should have assessed, a portion of the income is saved and allocated for the future. Saving one of them.

However, there is a much better way of connecting to saving. It is an investment. It’s just that there are some things that can keep people from starting to thrive. What is sufficiently of concern is “what investment ?,” “If you need sudden funds but the investment cannot yet be disbursed, what do you think?” or “what if you lose?”

If you have the same comfort, it looks like the meaning of investing is in a narrow space in your imagination. Because, now there are many investment pools that you can dive into. Not only gold investment and property investment, or high risk stock investment.

So, so that you become more literate with investing, it’s a good idea to understand the investment options according to the time period. With the required timeframe, you will get the benefits expected for future needs.

1. Short Term Investments

Many often think that investment must take a long time to make big profits. The presumption does not fulfill wrong. However, there are investments that are intended to meet short-term, medium-term and long-term needs.

Well, short-term investment is an investment whose results or funds are needed to meet short-term needs, a maximum of 1 year. For this type of investment, the most important thing to consider is safety and liquidity, aka whether your investment can be disbursed quickly or not.

Choose investment instruments with low risk, such as gold and deposits. You can also choose money market mutual funds that have the lowest risk. It’s just that, with a low level of risk, the benefits obtained are also somewhat smaller than long-term investments. Because of its nature, you can withdraw your funds in the near future if there is closeness.

Why money market mutual funds? Because this mutual fund will put the capital in a short-term postponement. This allows you to maintain the value for money as well as get profits in a short time. The investment results obtained are also fairly attractive, namely an average of 7 to 9 percent per year.

This instrument is considered suitable for beginners because you don’t need to spend a lot of capital to get started. You can buy money market products with a minimum investment of IDR 100,000 to IDR 250 thousand, depending on the selected Investment Manager’s policy.

2. Medium-term investment

This second type of investment usually has a period of time from one year to five years to be able to feel the profit. Of course, the returns obtained are higher than short-term investments. This time period provides an opportunity for you to get passive income.

With this period of time, some suitable investment options are insurance, gold, or mutual funds. The suitable choice of mutual funds is the type of mixed mutual funds and fixed income mutual funds. Mixed mutual funds have less risk than stock mutual funds and their level of fluctuation is not as dynamic as stocks. For those of you who are more conservative, fixed income options can be a more relaxing route.

The purpose of this medium-term investment is to increase the value or benefit of the available funds rather than just settling in savings. You can use the results for a down payment when buying a car, completing an education plan, to additional capital when you want to start a business.

3. Long term investment

Time periods ranging from 5 to 10 years are appropriate for this long term investment. The length of this time span is useful for minimizing the risks involved in short-term investments. Even though it is long, long-term investment can gradually increase the value of money invested on a consistent basis. Many investors choose this investment because it has a compounding effect in boosting the valuation of their funds from time to time.

The results of this long-term investment can be used for your needs in the next 10 years, such as children’s education and pension funds. You just have to bers

Get Rich In Old Age With Long Term Investment

Get-Rich-In-Old-Age-With-Long-Term-Investment

Get Rich In Old Age With Long Term Investment – Have you ever heard of the term long-term investment? How do you think about this type of investment? Investing is one of the activities favored by many people to date. With investment, you can maintain your wealth assets in the future, so that later you will have certain financial guarantees.

Many still do not realize the importance of investing, but not a few are already prepared to invest. There are two types of investment, namely long-term investment and short-term investment. Then what is meant by long-term investment and what are some examples of these investments?

So, to find out more clearly, here our will explain long-term investments, complete along with examples, strategies, and others.

What Is Long Term Investment

According to Investopedia, long-term investment is the investment of assets for a period of more than one year with the aim of controlling other companies. This means that long-term investment does require a long time, up to a year or more to achieve high returns.

In short, company A invests massively in company B. Then company A gets a very significant influence over company B without having a majority of the shares. In that case, the purchase price will be referred to as a long-term investment. Long-term investing is clearly very different from short-term investing.

In general, short-term investments only need less than 1 year to be able to withdraw funds or profits. Usually, short investments tend to be sold to other people or companies. While long-term investment takes a long time, it can be a year or even more. In contrast to short-term investments that will be sold, long-term investments will not usually be sold for many years.

There are even cases of long-term investments that will never sell at all. If you decide to become a long-term investor, then you must be willing to be patient for a fairly long time. With your patience, the potential profit that you will get is very high.

Long Term Investment Objectives

There are many goals of this long-term investment, here are some of them:

  • Learn passive income in each period, such as interest, dividends, or rental interest
  • directing special funds, for example the cost of children’s education or pension funds
  • minimize risk

Types of Long-Term Investments

There are various types of investments that are considered suitable for a long period of time. The types of investment are:

1. Gold
Gold has long been an investment instrument for a long period of time because it has proven to be very profitable.

This is because the value of gold tends to increase from year to year. If there is a decrease, then the decrease in value is not too significant. Another advantage of this gold investment is its very high liquidity. So, you don’t need to worry when you want to exchange gold into cash now.In addition, you could say that investment in gold has minimal risk and is resistant to inflation. Currently there are many places for you to start investing in gold. You can invest in gold in the form of bars, gold coins or even jewelry. Choose according to what you want and aim for. After that, don’t forget to learn the basics of investing in gold so you can follow its developments later.

2. Shares
Apart from gold, stocks can also be a long-term investment for you with large profits.

According to Good Financial Cents, there are several advantages to investing in stocks that make it a great long-term investment:

  • You don’t need to manage property or business because stocks are the “paper” investment
  • stock value can go up, even significantly over the long term
  • investing in stocks is tantamount to investing in the economy
  • You will get dividends, profits from the company
  • stocks have high liquidity
  • you can invest in stocks into international class
  • investment diversification

With these various advantages, stocks are an investment instrument that is suitable for you.

Try for beginners to learn stock investment tips first so they can understand the flow in the future.

3. Property

One of the products with a very high long-term investment value is land or land as well as buildings.As we know, the selling value of land tends to increase from year to year. This includes when you build a building on the land.So, don’t be surprised when there are already a lot of houses around you.Why has the price increased? Because every increase in demand for houses or land always. The house is one of the primary needs for humans.It can be said that each year the investment value has increased by 20% each year.However, this property investment is certainly different from investing or stocks. The reason is, when you want to start property investment, it will require a lot of capital.Because until now the property price itself is very high, especially if it is in a regional area.If you don’t have large funds, you can start with a Home Owner Credit (KPR) so you can make installments to buy it.

4. Bonds

This investment instrument is usually very helpful for entrepreneurs and investors.The bonds themselves are debt securities submitted by borrowers to lenders. In this letter your name is due as well as the loan due date.In addition, the letter also contains interest which is the loan obligation. Usually the investment period is from 1 year to 10 years.

5. Mutual funds

Mutual funds can also be used as a long-term investment instrument. In particular, the type of mutual fund that is most suitable for long-term investing is stocks. Equity mutual funds are mutual funds that allocate investor funds to the capital market, which in this context is stocks. This investment is suitable for beginners who do not understand stocks. The reason is, there are investment managers who help choose the best stocks.

Long Term Investment Strategy

Now, after discussing what the types are, here is Glints that will provide you with a strategy so you can be successful:

1. Choose an investment that you understand
Pay attention to the details of what investment you will start later, lest you don’t know at all so that later it can cause big losses. For example, if you start investing in stocks, then understand the ins and outs of investing well.

2. Start investing as soon as possible
The longer the money is invested, the greater the profit you will get. It is one of the strategies Warren Buffet uses in stock investing. Don’t hesitate to start investing early, because this can protect your wealth assets in the future.

3. Adaptable and patient
These two strategies do sound trivial. However, long-term investment does require a lot of patience in order to reap big benefits. Without patience, you can just stop investing in the middle and get a small profit.

Long-term investment is highly recommended for those of you who want to maintain wealth assets in the future. Without investing, maybe your money will run out quickly.

How To Invest In Business

How-To-Invest-In-Business

How To Invest In Business – Why invest in businesses? Beyond the potential profits that may come from investing in a portfolio of businesses, investors can enjoy a few additional benefits of buying into businesses they believe in.

First, it’s a chance to be a part of the next big thing – to be like the dragons on Dragon’s Den and pick exciting businesses, follow their progress as they grow and get credit and recognition for having been one of the first people to spot them.

Second, you get to contribute to the culture of innovation by supporting entrepreneurs when they need it most and giving them a chance to get great new businesses off the ground.

Third, it’s a way to get involved with innovation in an area you’re interested in or are passionate about, and share in the success of the business.

And, it is the opportunity to support your friends and family on their exciting new business endeavour.

What are you investing in?
Investing in businesses (equity crowdfunding) is about picking early-stage and growth-focused businesses that you think have the potential to grow. You invest money in them in exchange for a portion of their equity, meaning that you buy shares in their business. If a business that you’ve invested in succeeds, the shares that you own will become worth more than what you paid for them, and you may be able to sell them at a profit or receive dividend payments in the future. However, if the business fails – as many businesses do – you will lose some or all of your investment.

What are the main risks of investing in businesses?
There are three broad types of risks when investing in early-stage and growth-focused businesses. The first is that the business will simply fail – or even that it will tick along without ever really succeeding – and you won’t get any of your money back.

The second is that even if the business succeeds, your investment is likely to be illiquid. Even a successful investment will be locked in for a long time – often several years – while the business grows. This means that you are unlikely to be able to sell the shares, and you will likely not receive dividends, in the early years of your investment no matter how successful it later turns out to be.

Finally, there is the risk of dilution. If the business raises more capital later on (which most successful startups need to do), the percentage of equity that you hold in it will decrease relative to what you originally had. Dilution in itself is not always a bad thing, and this blog post explains why it is often to be welcomed, but it is something of which you should be aware.

Read our Risk Warning for additional information about the risks associated with investing in early-stage and growth-focused businesses.

The importance of diversification
The key to investing in early-stage and growth-focused businesses successfully – and mitigating the risks described above – is diversification. Most businesses fail, but the few that do succeed can do so to such a degree that they more than make up for losses. This means that in order to achieve strong returns, you need to have invested in a few of the big winners. Your chances of doing so are much greater if you build a diversified portfolio by investing small amounts in many businesses rather than large amounts in just a few. And when we say many, we mean many. We believe that an effective portfolio should include at least 50 early-stage and growth-focused businesses and potentially 100 or more (there is even data out there to suggest that investing in as many as 800 companies may greatly increase your performance).

One of the main reasons we developed Seedrs was to make it easy to create a diversified portfolio of investments you choose. By setting the investment minimum very low, we make it possible to invest in many businesses – no matter how much money you are prepared to invest.

Earning returns
The main way you can make money from your investments is by selling your shares in the businesses for more than you paid for them. There is no active secondary market for shares in private businesses, meaning that you won’t be able to sell them immediately. However, if the company grows to the point where it floats on a stock exchange, is bought by another company or conducts a share buyback, you are likely to be able to sell your shares – often at a significant profit – at that stage.

Alternatively, some businesses may begin paying dividends. This can occur if the business has achieved profitability but does not expect to continue growing significantly; it can also happen in cases such as theatre productions or films, where the company has a limited duration and distributes any profits at the end.