By : Max Ng Submitted 2007-02-08 17:05:19
According to the Cashflow quadrants by Robert Kiyosaki, I will need to switch to either a business owner or an investor to become wealthy. If I were to choose the path as an investor, I realized that there are certain responsibilities that I need to fulfill. What are the responsibilities? To answer this question, let use the example of investing in mutual funds. As we all know, fund managers managed mutual funds. They are expert and more qualified than the average investor in stock investment. Thus they are in a better position to make money from the stock market. Another advantage of mutual funds is that there is diversification to reduce risk. The amount of money is pooled to invest in different stocks, thus achieving diversification. These are the two selling points of investing in mutual funds. When I initially started to invest in mutual funds, I never do any detailed research. Like most people, I simply invest in a mutual fund that I think it will make money. The decision is usually purely based on the information presented by the sale persons. Happily, I invested and forget about it. I felt that since the expert fund manager is managing my investment, I had nothing to worry about. And I never really monitor the performance of the mutual funds. This did not just happen to mutual funds investment. I did that to other kind of investments as well. I felt that I wanted to spend as little time as possible and leave everything to the experts. I was lazy to learn and manage my own investments actively. Later, I learned from the Rich Dad's series by Robert Kiyosaki that financial education is essential. Since I always desire to be wealthy, I have decided to gain financial literacy. After studying for a few years, I have learned a lot of things and that really open my open eyes. As an investor, I am responsible for the outcome of my investments. No one else is responsible for the result of my investments. This is the part where most people missed out. They thought that they could leave things to the expert and do nothing. Firstly, I have the responsibility of selecting the expert to manage my investments. I need to select expert based on their track records. In the case of mutual funds investment, I need to select the fund manager who has track records to increase my odds of winning. Secondly, I have the responsibility of monitoring my investments regularly. If things are not in order, I should consider cutting loss and get out of the investments. In the case of mutual funds investment, if I have invested in a particular sector, I need to check that there are no bad news regarding the sector that may affect my investments. If the sector is expected to perform badly for the next few years, then my mutual funds investment will definitely perform badly. Then, I should consider cutting loss. Thirdly, I have the responsibility of choosing the correct investment company. If an investment company has financial problems, then I face the risk of losing money if the company were to liquidate. In the case of mutual funds investment, if the fund house had financial woes, I would be asking for trouble by investing my money with them. Next, I have the responsibility of choosing the right investment product. If I choose the wrong investment products, I am almost guaranteed to loss money. In case of mutual funds investment, if I had chosen a dotcom fund just after the dotcom bubble had burst, I would definitely be losing money. Then, I have the responsibility of getting the cheapest investment cost. If I have choose an investment with high investment cost, then it simply means that my investment return needs to perform better than the high investment cost before I can make money. In the case of mutual funds investment, I should look out for ways to reduce sales charge, expensive ratio, fund management fees and so on. Lastly, I have the responsibility of planning for my investment. Like what I have learned from the Rich Dad's series by Robert Kiyosaki, investment is a plan. In the case of mutual funds investment, I should time my entry and my exit properly. The performance of the mutual funds goes up and down over the years. If I had not set any profit target for my mutual funds investment, then I would be holding on to the funds indefinitely. I would end up not selling my mutual funds when there is a reasonable profit. If I needed my money when the market had dropped, then I would be losing money by cashing out at the wrong time. The above are just some responsibilities as an investor. They are by no means complete. I believe when I learn more, the list of responsibilities will grow. In short, one need to be responsible for one's investments. * DISCLAIMER * The author only provides the material and information as a layperson's views about an important subject. The materials and information are from sources believed to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy. All the materials, information and procedure in this book are only the author's personal opinion. You must consult your own professional advisor and other reputable sources on any matter that concerns you or others. The author, publishers and distributors are not competent and do not profess to give legal, accounting, medical or any other type of professional advice. The reader must always seek those services from competent professionals who can review your own particular circumstances. The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Author Resource:- Max Ng helps people who desire success to learn from his mistakes and realizations by sharing his personal struggle for success at http://www.richdadsecrets4me.com. He is the author of "Your Greatest Gift! Why Waste It?" at http://www.yourgreatestgift.com
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Saturday, September 15, 2007
Sunday, September 9, 2007
Forex As an Asset Class and Financial Instrument
By : Jason Uvios Submitted 2007-03-02 07:24:08
Forex has always been classified as an asset and an instrument of financial transaction including both the spot and futures market. By one argument, the forex market makes a pretty much bigger turn over on a daily basis than the commodities and services trade although conceptually forex is there to facilitate the latter two. Need any more evidence for forex's status as financial instrument and an asset class of its own right? Sequentially, the logic goes that any financial instrument can be thought of as fit to be an asset class. So What Is A Financial Instrument? Any document, either virtual or real, which is assigned some monetary value and legally tradeable in the market as a package of an asset, is a financial instrument. The most traded one amongst all financial instruments is the equity based one. Plain vanilla is an example of simplest financial instruments which has a simple strike price and expiration date. This option is devoid of advanced features but optionally there can be what is known as a knock-in option which activates the instrument only if the underlying stocks strike a preset price. But coming back to the discussion of forex as an asset class, the overall foreign exchange traded daily has jumped by 38% between April 2005 and April 2006 and has more than doubled since 2001. One significant reason that can be attributed to this is growing acceptance of forex as asset class strongly backed up by the fund management assets such as hedge funds and pension funds. On the same breath, one can not negate the advent of easier internet based retail trading platforms which pitched into attract large volumes. We have said that forex is an asset class. The asset class is basically categorized as debt based and equity based depending on whether the investor gets to own the asset or not. For example, debt asset is when an investor extends a loan to the owner of asset and the equity based asset reflects the ownership of the investor. What Does It Mean To A Retail Investor? The categorized forex asset class is a wise investment opportunity for a retailer. You can systematically acquire and hold a foreign currency, such as euro or pound sterling till it appreciates sufficiently over time. Speculative forex trading is another avenue but it is ridden with significant risk factors. Transnational executives hold a considerable amount of forex in their kitty.
Author Resource:- Jason Uvios writes about "Forex As an Asset Class and Financial Instrument" to visit: foreign pharmacy, foreign currency and foreign currency exchange rates.
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Forex has always been classified as an asset and an instrument of financial transaction including both the spot and futures market. By one argument, the forex market makes a pretty much bigger turn over on a daily basis than the commodities and services trade although conceptually forex is there to facilitate the latter two. Need any more evidence for forex's status as financial instrument and an asset class of its own right? Sequentially, the logic goes that any financial instrument can be thought of as fit to be an asset class. So What Is A Financial Instrument? Any document, either virtual or real, which is assigned some monetary value and legally tradeable in the market as a package of an asset, is a financial instrument. The most traded one amongst all financial instruments is the equity based one. Plain vanilla is an example of simplest financial instruments which has a simple strike price and expiration date. This option is devoid of advanced features but optionally there can be what is known as a knock-in option which activates the instrument only if the underlying stocks strike a preset price. But coming back to the discussion of forex as an asset class, the overall foreign exchange traded daily has jumped by 38% between April 2005 and April 2006 and has more than doubled since 2001. One significant reason that can be attributed to this is growing acceptance of forex as asset class strongly backed up by the fund management assets such as hedge funds and pension funds. On the same breath, one can not negate the advent of easier internet based retail trading platforms which pitched into attract large volumes. We have said that forex is an asset class. The asset class is basically categorized as debt based and equity based depending on whether the investor gets to own the asset or not. For example, debt asset is when an investor extends a loan to the owner of asset and the equity based asset reflects the ownership of the investor. What Does It Mean To A Retail Investor? The categorized forex asset class is a wise investment opportunity for a retailer. You can systematically acquire and hold a foreign currency, such as euro or pound sterling till it appreciates sufficiently over time. Speculative forex trading is another avenue but it is ridden with significant risk factors. Transnational executives hold a considerable amount of forex in their kitty.
Author Resource:- Jason Uvios writes about "Forex As an Asset Class and Financial Instrument" to visit: foreign pharmacy, foreign currency and foreign currency exchange rates.
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Retirement Income Opportunity
By : Adrian Monterosso Submitted 2006-12-19 13:30:02
Just because you have now retired or retiring in 10 or 20 years, you should not stop investing. It's now time to build on your nest egg and revise your retirement plan. You can still be conservative and make money at the same time. Many people start there stock investing careers when they retire as a hobby or a money making venture. The Stock Market is a great Retirement Income opportunity that needs to be learned properly. Stock investing at retirement can be learned without too many pressures, therefore with the right education you could be making $500 per month pocket money or money that contributes towards a more elaborate lifestyle. Or if you just want to utilize the services of someone who helps you pick your stocks and then learn off them you can do this also. These stock picking services have helped many people make extraordinary incomes. Another way you can learn about the Stock Market is by going to classes and learning the market by studying in a group, this way you can also meet new friends and develop some relationships with like minded people. Staying active and stimulating the mind is important and will keep you feeling and acting younger. You can retain that sharpness you had when you were working, by starting with a retirement plan that can change your whole retirement outlook. Most successful investors consider earning money to be important even after retirement. The money you earn money from investments can be passive and contribute towards paying the bills and other expenses eating into the lump sum amount saved over your life time. Following are some tips to developing a Retirement Income Opportunity; 1. If you have not retired yet, do not wait until retirement before you start saving. Start at an early age and use a savings plan to save every pay day. Some banks and fund management companies have good rates which, in the long term, will possibly even double the money you have invested in a number of years. A retirement plan should start now, no matter what your age. 2. Stocks are a great option and have grown more than any other asset class over the last 50 years. Most large capitalized (high assets in company) companies have grown due to business growth in recent times. 3. Purchasing real estate is also a good option but has its disadvantages. Once you invest, if you need the money you can't get the money unless you sell and this could take months. Although, the advantage is that the price of properties go up over long term and they are less volatile than stocks. 4. You can also start a business as a hobby. The working experience you have gained over your life time can branch into other ideas. Some people invest for a hobby into the stock market or property. The stock market allows you to start with a minimal amount and you can grow this amount to a substantial amount with the right guidance. See the bottom of this article for more information. 5. You can also get an investment retirement account or managed fund account. You can find out more about these from a financial planner. There are many ways where a little money in the beginning can explode into lots of money and become a very successful retirement income opportunity. Days of relying on the government to provide us security when we retire are over. The retirement income provided by the government are not worth the wait and that is why you need to develop your own retirement income opportunity. By taking action and using some simple yet effective investment techniques you can profit like the other 5% who retire comfortably.
Author Resource:- The developers of Stock Market Option Trading have been actively involved in stock trading and investing for nearly 10 years. Click here to obtain access to a free exclusive E-Book the get your free copy
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Just because you have now retired or retiring in 10 or 20 years, you should not stop investing. It's now time to build on your nest egg and revise your retirement plan. You can still be conservative and make money at the same time. Many people start there stock investing careers when they retire as a hobby or a money making venture. The Stock Market is a great Retirement Income opportunity that needs to be learned properly. Stock investing at retirement can be learned without too many pressures, therefore with the right education you could be making $500 per month pocket money or money that contributes towards a more elaborate lifestyle. Or if you just want to utilize the services of someone who helps you pick your stocks and then learn off them you can do this also. These stock picking services have helped many people make extraordinary incomes. Another way you can learn about the Stock Market is by going to classes and learning the market by studying in a group, this way you can also meet new friends and develop some relationships with like minded people. Staying active and stimulating the mind is important and will keep you feeling and acting younger. You can retain that sharpness you had when you were working, by starting with a retirement plan that can change your whole retirement outlook. Most successful investors consider earning money to be important even after retirement. The money you earn money from investments can be passive and contribute towards paying the bills and other expenses eating into the lump sum amount saved over your life time. Following are some tips to developing a Retirement Income Opportunity; 1. If you have not retired yet, do not wait until retirement before you start saving. Start at an early age and use a savings plan to save every pay day. Some banks and fund management companies have good rates which, in the long term, will possibly even double the money you have invested in a number of years. A retirement plan should start now, no matter what your age. 2. Stocks are a great option and have grown more than any other asset class over the last 50 years. Most large capitalized (high assets in company) companies have grown due to business growth in recent times. 3. Purchasing real estate is also a good option but has its disadvantages. Once you invest, if you need the money you can't get the money unless you sell and this could take months. Although, the advantage is that the price of properties go up over long term and they are less volatile than stocks. 4. You can also start a business as a hobby. The working experience you have gained over your life time can branch into other ideas. Some people invest for a hobby into the stock market or property. The stock market allows you to start with a minimal amount and you can grow this amount to a substantial amount with the right guidance. See the bottom of this article for more information. 5. You can also get an investment retirement account or managed fund account. You can find out more about these from a financial planner. There are many ways where a little money in the beginning can explode into lots of money and become a very successful retirement income opportunity. Days of relying on the government to provide us security when we retire are over. The retirement income provided by the government are not worth the wait and that is why you need to develop your own retirement income opportunity. By taking action and using some simple yet effective investment techniques you can profit like the other 5% who retire comfortably.
Author Resource:- The developers of Stock Market Option Trading have been actively involved in stock trading and investing for nearly 10 years. Click here to obtain access to a free exclusive E-Book the get your free copy
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Safe And Reliable - Unit Trust
I am very sure that you know that you can increase your wealth from investment. When you hear the word investment, are you thinking about stocks and shares? People get skeptical about shares thinking that one will definitely lose money from shares because of the risk level. However, if someone tells you that there are investments that have little or no risk; do you think its bond?
Personally, I am not a fan of bonds or fixed income securities. Investing in bonds is a waste of time and sometimes, money. However, the best investment that I truly love because of the transparency and returns are unit trust. Another term for unit trust is mutual funds.
A unit trust is a legal trust that holds investments and other assets for the benefit of the unit holder that share similar investment objective. The investment portfolio is managed by a professional fund management firm that strives to meet investment goals of the unit holders.
The unit trust is divided into equal portions called units. Investors buy and sell these units from the manager of the unit trust. A unit trust is constituted by a trust deed.
There are advantages and disadvantages of investing in unit trust. In fact in any kind of investment, there are advantages and disadvantages. Unit trust serves investors who do not have much financial knowledge on investment. As unit trust is handled by a professional fund management, people who spend time and money to study about investment, I am sure your money is in the safe hands.
Advantages for unit trust are affordability, professional investment expertise, diversification, liquidity, security, convenience and compatibility. Where else disadvantages for unit trust are risk (all investments have risk), level of attention and high cost base.
There are other factors to consider too when investing in unit trust but these are some of the features that can be considered the next time you want to invest.
Article Source: http://EzineArticles.com/?expert=Nurazrin_Suhadi
Personally, I am not a fan of bonds or fixed income securities. Investing in bonds is a waste of time and sometimes, money. However, the best investment that I truly love because of the transparency and returns are unit trust. Another term for unit trust is mutual funds.
A unit trust is a legal trust that holds investments and other assets for the benefit of the unit holder that share similar investment objective. The investment portfolio is managed by a professional fund management firm that strives to meet investment goals of the unit holders.
The unit trust is divided into equal portions called units. Investors buy and sell these units from the manager of the unit trust. A unit trust is constituted by a trust deed.
There are advantages and disadvantages of investing in unit trust. In fact in any kind of investment, there are advantages and disadvantages. Unit trust serves investors who do not have much financial knowledge on investment. As unit trust is handled by a professional fund management, people who spend time and money to study about investment, I am sure your money is in the safe hands.
Advantages for unit trust are affordability, professional investment expertise, diversification, liquidity, security, convenience and compatibility. Where else disadvantages for unit trust are risk (all investments have risk), level of attention and high cost base.
There are other factors to consider too when investing in unit trust but these are some of the features that can be considered the next time you want to invest.
Article Source: http://EzineArticles.com/?expert=Nurazrin_Suhadi
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