Investments vary a great deal from one another and the opportunities available to invest in a flourishing economy are numerous. Each broad investment type—from bank products to stocks and bonds—has its own general set of features, risk factors and ways in which they can be used by investors.
Risks are two-fold: There are those that you can easily foresee and those which are unpredictable and thus quite impossible to measure their risk factor. The first type of risk can be instantly jettisoned by a quick assessment of its financial benefits.
the investment, invest wisely. Investments are usually categorised according to their risk factor. The highest the interest they reap the highest is their risk. Below are some examples. Furthermore, further below are some important tips you should keep in mind when you are considering purchasing investment products. Same tips help protect those investments once you have them.
Banks and credit unions can provide a safe and convenient way to accumulate savings—and some banks offer services that can help you manage your money.
When you buy shares of a company’s stock, you own a piece of that company. Stocks come in a wide variety, and they often are described and categorised based on the company’s size, type, performance during market cycles and potential for short- and long-term growth.
An annuity is a contract between you and an insurance company, in which the company promises to make periodic payments, either starting immediately—called an immediate annuity—or at some future time—a deferred annuity
Numerous types of investments come into play when saving for retirement and managing income once you retire. For saving, tax-advantaged retirement options can be a smart choice. Managing retirement income may require moving out of certain investments and into ones that are better suited to a retirement lifestyle. An example is the Pensioners’ Government Savings Bond that was issued recently specifically for pensioners who wished to save into a Bond having a much better interest rate than the normal savings account offered by Banks.
A bond is a loan an investor makes to an organization in exchange for interest payments over a specified term plus repayment of principal at the bond’s maturity date.
Tips for when you decide to use your money to obtain an income or a capital gain in the future.
Hint: read three tips a day!
- Never judge a person’s trustworthiness by the sound of their voice.
- Take your time when making investment choices. Be careful of “act now” or “before it’s too late” statements.
- Say “no” to anybody who tries to pressure you or rush you into an investment.
- Be wary of salespeople who prey upon your fears or promise returns that sound too good to be true.
- Always ask for a written explanation of any investment opportunity and then shop around and get a second opinion.
- Be wary of any financial adviser who tells you to leave everything in his or her care.
- Stay in charge of your money or enlist the help of a trusted third party to assist you.
- Make cheques payable to a company or financial institution, never an individual.
- Retain and maintain account statements and confirmations you receive about your investment transaction.
- Document all conversations with financial advisers.
- Take immediate action if you detect a problem. Time is critical, so do not be afraid to complain.
- Don’t let embarrassment or fear stop you from reporting financial exploitation or investment fraud.
- Don’t put all your eggs in one basket— divide your investments among different asset categories, such as stocks, bonds, and cash held in federally insured deposit accounts.
- Have enough emergency money in a savings or other readily accessible deposit account to support you and your family for at least six months before investing in non-deposit products.
- Do your homework. Never invest in a product you do not understand.
- Attend classes, seminars, or check the business reference section of the public library to become better informed.
- Be aware that many investment professionals offer “free seminars” as a marketing technique for obtaining new clients. Be sure to check the background of the presenter, research any recommended investment products, and get a second opinion before making the decision to invest.
- Understand the risks before investing. Investments always have some degree of risk.
- Be sure your financial adviser knows your financial objectives and risk tolerance.
- Never give out your bank account or credit card details unless you are certain of who you are dealing with.
- Keep in mind that genuine bank staff will never ask for the PIN for your bank or credit card.
- Check the address of a bank website you are using, looking for subtle differences, especially if you clicked through to it from an email that could be spam. It is better to bookmark the website address or type it in each time.
- Look out for fraudsters impersonating your suppliers or senior managers. They may ask you to make a payment or change payment details. Always check the email address is exactly the same as previous correspondence with the genuine contact.
- Look at your bank account and credit card statements regularly.
- Do not respond to an individual asking for help to place large sums of money in an overseas bank account.
- Remember that it is highly unlikely you have been ‘specially chosen’ by someone living abroad.
- Be careful when an opportunity to invest your money requires you to bring in subsequent investors to increase your profit – and be especially wary if you are told you can earn more from introducing investors than from the return on investment.
Seek advice from a reputable financial Institution with highly qualified advisors who are prepared to compile a portfolio for your specific needs taking into account your present situation and lifestyle whilst considering also your eventual retirement.