Monday, September 22, 2014
Know your financial goals and your risk tolerance for investments to pick a level of risk, return and appropriate term for your profile. Take your time and compare options to find the best fit. Never invest in products that do not understand. In case you do not understand, you can not know in the event that they are suitable for your profile.
Destine investment over between your income and common expenses. Do not use money that you require. Always have a reserve equivalent to 3-6 months of expenses in comparatively liquid that may have emergency assets. Never invest in equities or money that may be needed in the short term.
four Invest for the long term. Markets go up and down, but long term there is usually more ups than downs. Know stay the work and not be distracted by every day variations and procure profits.
Diversify, diversify, diversify. Do not take stock or sector. This temporal diversification protects against fluctuations in rates of interest, and ensures an income for longer.
Beware costs! Compare rates all right and costs of each entity. Much influence on the final return on investment. And this also applies to transactions of speculation.