Tag Archives: bonds

Protecting Your Investments

When you invest, you hope that your money will generate an income for you or that it will grow in value and allow you to realise a profit in the future. However, there is a possibility that your desired investing outcome may not materialise; you could instead receive an unfavourable result.

While you happily envision what you stand to gain, before you commit your funds to an investment you also need to consider what you could lose if you were to make the wrong decisions. It’s critical to assess how any adverse outcomes could harm your financial position and negatively affect your goals.

When you put your money to work for you, one of the possibilities is that you could lose some or all of your money if the venture fails. There is also the risk that your investment may not perform as planned, or that you may not get the kind of returns within the time frame that you had anticipated.

Although risk is an inherent part of the investing process, you can still seek to minimise or prevent some of these negative occurrences. Let’s look at some of the strategies that can help you to protect your investments from the risks of loss and unmet objectives. Continue reading Protecting Your Investments

Four Things You Need to Know Before You Invest

We have recently been looking at the importance of developing your financial savvy. Ignorance about money matters can cause you to struggle to meet your current financial needs, and may also prevent you from making the best use of your funds to build your wealth.

Investing – the process of putting money to productive use with the expectation of making a profit – is a vital money skill for anyone who wishes to accomplish more out of life than just paying bills. If you don’t know how to invest, it will be difficult for you to earn enough money to live your dream lifestyle.

If you try to invest without understanding the process, you may also make poor investment choices. Investing in ignorance can be detrimental to your finances; you may overlook lucrative opportunities or lose your money. Let’s look at four things that you need to consider before you start investing. Continue reading Four Things You Need to Know Before You Invest

Investing by Lending Money – Returns and Risks

To be a truly successful investor, it’s important to understand the nature of any investment that you wish to undertake; by knowing how it can increase in value or supply an income, recognising the level of risks that the investment may bring, and ensuring that the investment type is ideally matched with your financial objectives.

Last week we discussed ways to invest by lending money in the financial markets. As we explained, large corporations, financial institutions and governments can create investments that allow them to borrow money from the investing public for their short-term financing needs or long-term capital requirements. Continue reading Investing by Lending Money – Returns and Risks

Get A Bang For Your Buck With Bonds

“How can the average person invest today and make good returns? I’m not looking for a fly-by-night investment scheme; I want a legitimate opportunity that I can place my hard-earned money and receive a worthwhile profit.”

Over the three years of writing this column I have seen an increase in the numbers of people enquiring about investment options. They have a genuine desire to find out how their money can work for them. Gone are the days when the investment arena was occupied only by jargon-speaking financial traders and the super-rich!

While persons may have heard about the benefits of investing in the money market and the stock market, many people have never examined the possibility of earning big in the market for bond investments. Continue reading Get A Bang For Your Buck With Bonds

Investing Basics

“I’m always seeing articles in the newspapers that talk about investments, but it seems like investing is something that’s out of my reach, as I don’t have a lot of money. Is it possible for people with small incomes to invest?”

When we hear the word ‘investor’ many times we picture a wealthy person who has made a lot of money by trading in the stock market, or buying expensive real estate. The reality is that anyone can invest, if he or she learns and applies the basic concepts of investing.

So what exactly is investing? Investing is simply the act of putting money into an endeavour with the expectation of making some profit. An investment is any item that is bought with the intention for it to increase in value in the future, when it can be sold at a higher price, and/or provide an income stream. Continue reading Investing Basics