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