What is the Right Way of Investment?

There are thousands of investments available to any individual. The field of investing is a large one. It offers a seemingly endless number of assets and opportunities which include stocks, bonds, Real Estate, Mutual Funds and Other investing structures.

            But Before investing money, do you know the actual meaning of “Investment”?

Well, if I say, it defines differently in economic way and in financial way but in simple word which I believe that “invest a small amount with less risk for the purpose of high returns”. In another word, “Investment is equal to Time Management”.  High Returns is fixed, if people frame their time structure in proper manner which based on current scenario as well as on future scenario.

Also, there are so many strategies have stood for investment. Many people are taking advice from a financial planner, accountant or investors for better understand but they are also continually learning & expanding their skills at making money in the markets.

Well, many ways are available for investment but there are two different ways of investment which is right for me.

1.      Invest for Future &

2.      Invest for Present

INVEST FOR FUTURE

We are mostly investing our money for future prospectus. At least till 5 to 10 years of long vision. For that we think deeply. We think about upside – How my assets will grow? and then starts research and all. But the assets are depending on many factors such as your investment time frame, appetite for risk & financial goals.

Do you know that for assets grow, what should we do?  Let’s discuss on it.

? Buying Stocks:

Stocks are shares of ownership in a specific company. These investments can be valued & rated depending on the company’s financial stability.

? Purchasing Bonds:

When you buy a bond, meanwhile you are lending money to the company. With the consistent payments from bonds, they are also great for investors that want predictability in their income.

? Investing in Physical Gold:

Physical Gold has its benefits & can be a potential long-term investment. It can be used to hedge against inflation & to get an easy loan. 

? Other Investing Entities:

Million of people will never own a share of stock or a bond. Instead, they invest their money in a family business such as a restaurant or retail shop.

            Apart from this, many other ways are available in financial markets for your future investment. But life is uncertain. Specially, in today’s pandemic. Situations & Preferences change with time. Do you think about downside that What if you become disabled or die earlier than maturity of your investment? It will be full stop for yourself. Due to this downside, I believe the second way to follow which is Invest for Present.  

INVEST FOR PRESENT

  But how to do this? Might be this question will raise in your mind. But no worry, we also discuss on this. So, Let’s start ………..

For Present Investment we should do planning and work out accordingly which I believe. It includes: -

 ? Insurance Planning:

If anybody is financially dependent upon you, then you have a sufficient life insurance. There are many insurance plans are available in the market where you get interest amount in present before getting principal amount on maturity.

 ? Cash Flow Planning:

Every person has to prepare their small balance sheet in which they get to know how much money he/she spend monthly or yearly. Due to this, necessary things will keep continue & rest will be cut-off. In this planning, you can store your emergency fund simultaneously.

 ? Estate Planning:

You can buy a home or properties to rent with a knowledge of the asset, location and other regulations. Here you can spend your rent amount without losing principal amount of property.

 ? Tax Planning:

Taxes are everywhere and its payment is must for all. You should confident that you are contributing to or withdrawing from the right types of accounts each year. Because of tax planning, people can phaseout a range of any tax credits or other tax provisions.

        A Famous Businessman Warren Buffett says on investment that, “The most important investment you can make is in yourself”.

 It’s true. Now, choice is yours. If you have taken care of these planning, there’s still no need to spend time in deeply thinking. To be clear, the above list is not all inclusive. For some people, there will be have their own opinions or additional points. You can share your opinion or experience through comment below.