A Good Investment Approach to Make Money Investing

13 Nov

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Regardless of whether the year is 2011, 2012 or 2020 – here’s a great investment method to make cash investing without a crystal ball. Any great investment strategy considers each investment choice and timing. If you can’t make money investing with this simple strategy, rest assured that only the handful of and the fortunate will make income.

Ahead of you pressure over placing collectively a great investment approach for 2011 and going forward, ask your self the clear question. Exactly where do most profitable people invest (or where have they in the previous) to make cash investing more than the long term? The answer ahead of the monetary crisis was bonds, stocks and true estate. The answer right now for the common investor is the very same and takes the straightforward form of bond funds, stock funds and equity genuine estate funds. In the final analysis, if all 3 of these investment regions tank – we’re probably in a depression and only a lucky few people or sensible speculators will make cash investing.

Great investment strategy does not rely on speculation or attempting to time the markets. No matter what you hear, no a single has a confirmed and steady record in industry timing that beats the markets considerably over the lengthy term. If they did they’d make a ton of cash investing, and they’d hide their secrets, not share them. So, why not settle for a very good investment strategy that tends to make only a single main assumption: that the USA will grow and prosper more than the lengthy phrase?

Investing income in the 3 locations above is easy with mutual funds. To decrease your danger and add flexibility to your investment method, add a fourth fund variety known as a income market place fund. At today’s interest prices these might not look like a excellent investment, but they are risk-free and earn interest that tracks current rates. Obtaining far more particular, by owning just 4 various funds you can put together a great investment approach for 2011 and beyond and make funds by investing in America’s future. In order from high safety to greater risk and better profit potential: a money marketplace, intermediate-phrase bond, significant-cap equity-income, and equity genuine estate fund is all you want to personal.

A great investment method to get your feet wet is to basically invest equal cash in all 4 funds. Timing technique requires no judgment calls or guessing. One year later and as soon as a year immediately after that, you basically move funds around to make all 4 funds equal in worth once more. This automatically forces you to take some funds off the table from your much better-performing funds – and to move far more cash into these that did not do as nicely. The net outcome over time is that you are buying a lot more shares when prices are down, are selling shares that are fairly high-priced.

This is also a good way to make income investing more than the long term even though keeping a lid on risk. Simply purchasing and holding funds is not a great investment method, and has gotten a lot of typical investors in difficulty in the past. For example, genuine estate funds were excellent investments for numerous years till they were nailed by the financial crisis. Had you owned them and just held on, by 2009 you could have had a important quantity of money accumulated and at threat there… resulting in large losses as a outcome of the monetary crisis.

There is much more than just simplicity involved in what I am calling a very good investment strategy for 2011 and effectively beyond. This method employs two of the only time-tested tools in the investment organization: BALANCE & REBALANCE and DOLLAR Cost AVERAGING. The first tool keeps you on track while maintaining a lid on risk, and the second is the tool that functions to reduce your average cost of investing by having you buy far more shares when rates are reduce and fewer when they are high.

You can place a very good investment method together with only moderate risk by owning just 4 various mutual funds. Folks make income investing over the extended term with bonds, stocks and genuine estate and the intelligent ones hold some funds in a risk-free investment as properly for flexibility. In years past, some people just got fortunate and created money investing with no a technique. With a very good investment technique you won’t want to cross your fingers and rely on luck. If America prospers in 2011 and beyond – so must you.

10 Responses to “A Good Investment Approach to Make Money Investing”

  1. Berna January 13, 2013 at 6:18 pm #

    Personal finance, money, business, investment books? What game titles would you recommend ?

  2. Vincenza February 6, 2013 at 7:53 am #

    I’ ve been saving up some money to invest in index funds such as REITS, Small cap stocks and Vanguard S&P 500. I’ ve been contemplating if it is the right time to buy these funds now. I am new to investing and I keep hearing that market always goes in up and down cycles.

    When i checked out the charts for the index funds I mentioned, it seems there has already been a down cycle between 2002 – 2003. From 2003 onwards there has generally been an upward trend in the charts till now (2007).

    Is it ok to buy index funds now hoping that the market will continue to perform well or is there any imminent “down cycle” of the market?

  3. Cody February 19, 2013 at 8:45 am #

    Whether or not you’re an AGW ‘skeptic’, you have to admit that there are risks involved with emitting massive amounts of greenhouse gases into the atmosphere. And the reality is that at some point we’re going to take serious action to reduce carbon emissions. Plus oil is a limited resource concentrated heavily in politically unstable areas, and we should be trying to reduce our dependence on it. So I’m wondering precisely what measures people would be willing to accept.

    So far political conservatives in the USA have rejected any market-based approach to reduce carbon emissions, and as a result we’re stuck with government (EPA) regulation. Republicans will no doubt attempt to eliminate the EPA’s ability to regulate greenhouse gases, but it’s not likely that they’ll be successful. Their best chance at success would be to pass a climate bill and replace EPA regulation with some sort of market-based system. So which of the following would you be willing to support, and why? Feel free to select multiple options, but state the one you most prefer.

    1) Government regulation (i.e. EPA).
    2) Market-based carbon cap and trade system
    3) Carbon tax offset by reductions in other taxes
    4) Heavy government investment in R&D and implementation of alternative fuel and energy technologies
    5) Other

    If you support #4, please specify where they money should come from. For example, should we implement a carbon tax but use the funds to invest in alternative technologies instead of reducing other taxes?
    If you’re going to claim there is no risk then don’t bother to “answer” the question. I’m not interested in ignorant statements, I’m interested in the opinions of people who are capable of intelligent thought.

  4. Jong February 21, 2013 at 11:55 am #

    I am in a 403(b) plan. I don’t understand which is better, or when it is better to invest in a Money Market Fund or a Fixed Interest Account. What is the difference between the two and what is the rule of thumb when approaching these investment tools?

  5. Jacquline April 21, 2013 at 9:36 pm #

    I’ve never invested before and I’m trying to learn as much as I can. Where do I start? How do I start? What’s best in today’s unstable market? Stocks, mutual funds etc.? Also, considering there is SO MANY options for stocks or mutual bonds or what have you, how do you decide? Should I do online investing or go to an investment firm myself?? Just looking for some good advice. Thanks!
    I have about $1000 to start invensting.

  6. Alexandra April 28, 2013 at 11:26 am #

    What approach should a person take? I know that you have to pay the broker a commission. A person has to pay a fee. So, how does a person make money off of an investment? I am not talking about mutual funds. I am interested in individual stocks. Thanks.

  7. Tammie June 6, 2013 at 12:07 am #

    I’m new to investing. I have ~$1000 to work with to start, maybe less. I’d like to invest in some companies that I’ve heard of/read about/had positive experiences with, but a lot of them do not have stock symbols, and thus I assume are not publicly traded. Is there a way to invest in private companies, given the relatively small amount of $ I have to work with? Do I have to actually contact the owners of the company, or is there an impersonal way or system of investing money into a privately held company?

  8. Anja June 25, 2013 at 12:20 am #

    I want to buy a house and then make money through rent payment. What is the best site resource to do this through? How should I research it?

  9. Jamie July 12, 2013 at 6:35 pm #

    I am looking to invest no more then $100 (Plus fees) but i want to hold on to the stock for a few years with no other account activity.

    I need the cheapest fees

    Best answer bests 10 pts
    I am looking to buy 10 shares of an eight dollar stock but i may buy a few more.

  10. Val July 25, 2013 at 3:56 am #

    I have about $40,000 that I want to invest, but I do not know much about the markets or where I should invest it.

    Could someone maybe throw a couple general ideas out there, with what I could expect from that investment and some sources that back it up as reasonably safe? I also want to be able to look into the investment opportunity suggested myself.

    Also appreciated if someone could give me websites where I could find easy-to-understand information about the investment market and what kind of things I should expect from it.

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