Are you new to investing? If so, you have taken a big step towards making a lot of money. If you use this opportunity right, you can get yourself into a very good place. You can increase your wealth exponentially over time and stabilize your financial security. This means being able to afford the things you want and love and live a much less stressful life.

As a first time investor, what are the best investments? It’s hard to say that there is a better investment for one person to another. There is no overall best investment. If there is one investment that was the best it would have no risk and could make you a ton of money. If that investment existed, that’s where everyone would invest and nowhere else. That investment does not exist.

The best investment is the one that is going to make you the most money with the least risk. This will be different from person to person. First of all, how old are you? If you are in your 20s, you have the chance to take on a lot of risk and make a lot of money. If you’re in your 50s, you are probably very close to retirement and do not want to lose any money.

As a first-time investor, you are a beginner. You probably don’t know much about investing and once make sure you are doing the right thing. The best investment for you is the one that you understand the most and feel the most confident with. First, a look at your age and decide what a good investment for you would be risk-wise. If you are a beginner and you are in your 50s, you will want to do something that is a little less risky such as bonds or conservative mutual funds. If you are in your 20s, you want more risk and may want to look more towards stocks.

Then, all you have to do is learn all you can about the investment that you chose and invest as much money and as you can. The more you work towards in the more you invest, the more money you will make, no matter how much risk you take on. Of course, you will probably make more money with more risk, but you need to make sure you are able and willing to take that risk.

When I was a beginner, my biggest investment dilemma was identification of best investment options to build a perfect portfolio. When I was in this dilemma only one thing was clear that “i want to save my hard earned money to invest it on assets and not on liabilities”. People generally save to buy a house, car, TV, motor bike etc. But we cannot ignore the need of liabilities in our live. A good house, a nice car, a furnished home, all adds to our standard of living. There must be a perfect balance between savings that is focused on buying assets and other which shall buy the required liabilities. This is the reason why I have classified savings as:

  1.  Liability savings.
  2. Asset savings.

The objective of asset savings is to accumulate assets and liabilities savings buy needed liabilities. People often forget to do this differentiation in their savings. People save and then invest on assets like shares, bonds etc and ultimately redeem to buy liabilities. This is not right, savings focused on assets should always buy more assets and never a liability. The fund generated by liability savings should be used to buy liabilities. With this concept, we will briefly discuss the affect of the above two types of savings on your financial independence:

  1.  Asset savings – makes you richer
  2.  Liabilities savings – makes you poorer but increases your standard of living.

It is not sufficient to think about savings and investment in isolation. The savings should make you richer and in parallel increase your standard of living. If an investor can manage this balance then he can be sure to reach his goal. The goal of asset savings is to give the investor a financial independence. Financial independence decreases the investor’s dependency on their job. Investors who are 100% financially independent no longer needs to do job to earn their livings. Lets assume that an investor decides to save and invest $100 equally among asset saving and liability saving. At this the choice of a suitable investment options becomes most important. The choice of investment option is dependent on the time span for which you can keep your savings invested:

  1.  Asset savings – long term investment
  2. Liability savings – short term investment.

Investment time horizon for asset savings is minimum 5years. It means if you buy one a share today then you must not sell it for next 5years. Liabilities investment has time horizon of 1year to less than 5years. Investment options like shares and mutual funds (equity linked) are best choice for long term investment options. Bank fixed deposits and recurring deposits are best choice for short term investment options.

  1. Asset savings – invest on shares and equity linked mutual funds.
  2. Liabilities savings – invest on bank fixed deposits and recurring deposits.

The quantum of money an investor allocated to asset savings and to liability savings is very critical. If you are saving more for liabilities then your speed of becoming financially independent will be slower. If you are saving more for assets then you will be always short of funds to buy the needful liabilities. It is very important to know your optimum levels of savings. In most cases you will find that your savings are not enough to buy the needful liabilities at the desired time. In such situations do not cut you budget of asset savings; you must look for other avenues to meet the deficit. This is one reason why so many people start doing business (work from home types) to make up for this deficit.

The author is a big enthusiast of the process of investment and aspires to set-up a highly successful online business of himself.

He is a firm believer in the concept of ‘working for self can make this world a better place to live’. He has also been heavily influenced by the theories and practices of Warren Buffett and would like to practice investment just like his guru.

These days, many people try to make quick money for themselves with the help of various investment plans that are available ion the market. You can also make a huge amount of money for yourself with the help of these investment plans. It is not necessary that you should be well enhanced with a large amount of money if you want to become an investor. There are many investment ideas through which you can easily become a successful investor.

Many people try to invest their money in the stock exchange but they are not at all aware of the necessary facts that are required to gain a good return. You can easily make yourself familiar with the basic investment ideas so that you can easily make a good amount of profit for yourself. Here, in this article, I will make you familiar with some of the necessary investment ideas that can simply make you a good investor.

One of the best investment ideas is stocks and it is mainly meant for the small money investors. There are many people who think that a large amount of money is required for investing in the stock exchange market but it is not the actual case. You can easily notice a large number of stocks that mainly require a very low amount of money for investment. Such types of stocks are quite affordable. You can easily start your investment plans with the few shares and then you can simply expand your investments.

You can easily buy the shares of the start up companies. It is really the best investment idea for small money investors. You must also acquire yourself with a confined research about the financial condition of the company before you invest your money in buying the shares. You should also make yourself aware with the ups and downs that take place in the stock exchange market. Well, I would also like to tell you that stocks can simply prove out to be very much beneficial in the long term investment process.

Government securities and bonds can also prove out to be the best investment option for various small money investors. You can easily buy various government bonds at a very low price. Such types of bonds can also provide the advantage of interest payments to most of the money investors. Government bonds and interest payments are mainly used to diversify the investments that are meant for the small investors.

So, these are some of the best investment ideas that you can follow if you want to become a successful investor.

Even though having a good education and a well-paying job guarantees a comfortable life, people who want financial security even during economic downtimes should invest their wealth. As a result, they will still have a source of income, even if they lose or retire from their professional jobs. However, although there are many businesses that people can go for, they should meticulously choose a venture that has minimal risks. They can consider the following good investment ideas:

The Stock Market

One promising investment idea that people should consider is trading in the exchange market. Though there is a common misconception that the stock market is a reserve for big-business executives, it requires low starting capital and is among the most profitable ventures to date. For instance, people can easily find reputable trading platforms on the internet, buy cheap penny stocks, and then double their investments as they begin to register good profits.

Moreover, small investors who do not have the financial muscle can buy shares of starting companies. These are usually cheap and can increase in value over a short duration. However, even though the Forex market is a promising business idea that people should consider, they should remember that nothing comes easy. They should research, do the mandatory legwork, and coin efficient strategies that enhance their chances of success in this global marketplace.

E-commerce Websites

The web is an exquisite platform where people can market their products and or services to a global audience. They only need to create simple and navigable websites or blogs and make money by selling their personal goods. Furthermore, people can use several promotional tools to make money. For instance, they can subscribe to various Pay Per Click (PPC) campaigns, display contextual advertisements on the websites, and earn money when readers click ads.

Small investors can also contact manufacturers and or big marketing agencies and subscribe to their affiliate programs. They can then create promotional pages that market their affiliate products and earn a commission when people buy the product from their websites. Although this investment idea is among the cheapest, and easiest to start, people must have loyal readers who will promote their sales initiatives. Therefore, it is imperative that they develop quality content, monetize their websites, and develop effective marketing campaigns.

Securities and Bonds

Securities and bonds are good investment ideas, especially to people who want to supplement other forms of investments. For instance, depending on their areas of residence, they can buy government bonds at a moderate price, and earn interests. Moreover, they can diversify their options by buying mutual funds. Because of their safety and high maturity or current interest rates that they attract, people can easily raise money to fund their development projects.

Real Estate

With the heightened need for cheaper, but better accommodation options, investing in real estate an exquisite idea that people who have the financial muscle should consider. Although the starting is discouraging, those who have gained a foothold in this industry smile all the way to the bank. By building unique and high-quality properties, they can entice their customers to buy subjectively rather than objectively.

A lot of people who are learning how to invest money wonder how they can learn all they need to know to do well at it. These steps should set you on your way to learning how to invest for your future.

1. Set Up a Brokerage Account: Setting up an account often includes sending in a check and proving your identity. Once you’re signed up, you can keep track of your investments in one place and also use their research tools. Then, it’s time to start researching.

2. Look Around You for Investment Ideas: You can discover ideas from products you use every day or from the mall. A class of schoolchildren liked a particular pen, researched the company, found the company favorable, and then bought stock in the company with their play money as part of a school project. The stock increased, and the children “made” money. The children discovered a good product, and you can do the same.

3. Research: Before you buy into any investment, do research. One of the world’s greatest investors, Warren Buffet, says you should examine a company you want to invest in as carefully as you would if you were going to buy the entire company. Read on to learn of specific items to research.

4. Look for Strong Income: Every company will benefit from having high profits, low debt and lots of cash. You can’t go wrong there. If one company spends $1 million to make the same $15 widget as a company that spends $4 million to make the same widget, you will want to buy the company that spends $1 million.

5. Seek Insider Stock Ownership: When I research a stock, I look for insiders to be invested in the company. I do this for two main reasons. 1) I figure they want to make money and will work hard on the company if they are invested in it. 2) They have the inside knowledge to know if this product/company will do well. I’d say this is an important aspect – like icing on the cake – rather than one of the main reasons to buy into a company.

6. Seek Company Buybacks: If a company is buying back its own shares, then that means fewer stocks in circulation. The benefit of that is a higher earnings per share if the company’s earnings increase or remain consistent.

These tips should help you get you started on your research. Once you have the tools to research, you’ll have the freedom to make your own decisions instead of relying on possibly bad advice.

Are you looking where to invest money? If you are, there are several ideas for you to take advantage of. You don’t have to invest it in the stock market or in real estate. You can invest it in those things that are important for you.

For example, you have a friend who has an excellent business idea. You know this thing is going to take off, so you decide to invest some money in it. What happens is you’re going to get some of the profits for putting your money in. You will at least get what you invested back if the business is not extremely profitable. You can make that part of the deal.

Then again, you may have your own idea and you may want to invest some cash in it. A way to do that is to deal with some sort of product. You’re going to buy it in bulk, sell it, and then use your profits to buy even more. You are then going to sell those items, make more money, and then invest that. What you’re doing is compounding your capital to expand your business.

So aside from the stock market and other investments, these are 2 ways you can invest your money and make a profit. Just make sure that what you are putting your money into is a sure thing. Look into the product, the market, and how the product is going to be presented to the market. If everything looks good, then you’re in business.

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When you finally have a master plan for investing, you will need to go into the finer details of how exactly to do it. There is no doubt that you have to build a portfolio, but there is a great difference between dumping all your money into the investment in one go and investing the same amount of money over a period of time.

Throwing all your money in at the same time does result in incredible earnings if you manage to time your investment right, but the reverse is true. A badly timed investment will cause you to lose everything. How will you ever be able to know when is the timing right? You can study economic data and pronoun trends, but all these are nothing but looking at things in retrospect.

Ask yourself this, are recessions the result of certain practices or are these practices isolated as causes because a recession happened? Being able to identify causes does not allow you to predict future market trends because these causes always only surface after the damage have been done. Moreover, the nature of the market is always shifting. Past models and data have never been able to provide any warnings to even top economists and governments of the world on each and every recession in modern history.

However, there is one trend that has remained true for the last hundred years of the world’s economy. The economy is always moving up or down. And this is the reason why one of the most successful strategies for wealth growth and protection is one where money is invested regularly.

One of these regular investment strategies is a monthly investment plan. A regular input based on monthly intervals coincides with the income received by the large majority of salaried workers, making it more logical and relevant than any other investment intervals. A more frequently interval would be troublesome and add on to the administrative work needed for money transfer, while a long interval would mean much of the salaries are sitting in banks and not doing any work for their owners.

We know past trends don’t say much about the future. The upward trend of the market over the last hundred years is no exception. It doesn’t guarantee that the market will continue to go up in the next hundred. So how does a monthly investment plan reduce your investment risk?

Monthly investments works on the simple principle that you can buy a greater quantity when prices are cheap and less with prices go up. In this way, you reduce exposure to higher prices and offset prices by down averaging with greater volume of low prices. The strategy is self regulating and works as long as you are committed to invest regularly.

For example, you invest $1000 every month into unit trust A. In month 1, unit trust was priced at $1.00, so you bought 1000 units. In month 2, the price of unit trust A rose to $1.25, so you could afford only 800 units. The average buy price of your 1800 units is now $1.11. This means that if unit trust A trades at a price above $1.11, you are making money, else you will lose money. In the third month, unit trust A traded at $0.80. Although his means you are losing money, you continue to buy 1250 units of unit trust A with $1000. This down averages your buy price to $0.98. In the fourth month, unit trust A goes back to the price on the first month, which was $1.00.

Over the 4 months, the average price of unit trust A was $1.01, but because you bought more during the low prices and less during the high prices, your average buy price is only $0.98; lower than the monthly average price. Over a long period of time, this self regulating mechanism continues to act; eventually your average buy price will be much lower than the actual monthly average. This means that should you sell your units after a long time, you are going to churn a profit at average prices or even slightly below the average. In this way, your investment risk is greatly reduced.

A monthly investment plan is one of the most secure and low risk ways of investing, even when investing in moderate risk products. However, a monthly investment plan is not useful at all if the product which you invest in goes bankrupt. Moreover, re-investing regularly in a single product is required for down averaging to be effectively, thus limiting your range of products. But these downsides can be mitigated by investing in pooled funds which in turn invest in a range of different products, thus eliminating the risk of loss from any single bankruptcy.

For the monthly investment strategy to work, one must be diligent in maintaining regular investment amounts. No investment is 100% risk free, but adopting appropriate strategies can always reduce them to an acceptable level.

In today’s current investment markets, there has been an increase in the number of individuals deciding and adhering to an investment plan. Perhaps this is caused by the drastic increases in the cost of living or the profound insecurity about the future of social security, and retirement funds. Many families are looking for investments plans which help them build two funds – one for the future and one for the present. Most people are not interested in purchasing stocks and bonds. This is both time consuming and complicated.

Investment plans essential allow the an investor to buy a set number of stocks, bonds, and securities. Purchasing is done on a regular and consistent basis. Funds for the investment are taking directly from a check, savings, or money market accounts automatically. These money is used to buy stocks and bonds that were pre-decided upon. For the most part you can change any of variables at anytime. These variables include amount, frequency, and what stocks are bought. There may be fees associated with changes. Make sure these fees are known before you sign your contract with your broker. However, if you are looking for more freedom most online investments firms allow you to change your variables anytime for free.

The next important step in an investment plan is figure out how much money you would like to invest.

It is a good idea to have a household budget. This will allow you to clearly analyze how much extra money is available for investing. Due to the long term nature of investment plans, you would suffer a financial lost if you had pull out early because you invested more money then you could afford. Make sure the amount you pick is readily available for each time the investment comes up. Remember just because you have extra money now does not mean in the future you will. Many investors come up short several months after starting their investments plans because they did not budget for an emergency fun. If you do feel you are at point where you can not no longer make a regular investment more investment companies will allow you to reduce or hold the next schedule investment.

Now you know how an investment plan works and you have the money to invest. The next question is how do you decide what to invest in. Research is the key component to this step. It does take time to decide but it is well worth the effort. Make sure you find stocks that have a history of performing well in the long term. At the time of purchase they may be expensive however they will probably also continue to increases which will directly benefit you. As you feel more and more comfortable with investing feel free to add more stocks and bonds to your portfolios. Many financial experts believe that diversification is a great way to increase your investment profits.

Investment plans are a great for the casual investor to make safe, low risk investments which will lead, in the long term, to increased profit and financial stability.

Real estate investment companies acts as brokers and represents both buyers and sellers and create ideal opportunities for real estate investors. They represent clients in the sale, purchase, exchange and the finance of the real estate investment. Real estate investment companies are ideal for individual investors who want to take advantage of the real estate market but are unable to spend time on it. Most companies give personal attention and due importance to individual investors as they are their primary and most crucial segment of business.

The real estate investment companies deal with active brokers, a wide variety of investors, vendors, consultants and governmental agencies. Individuals can avoid many dangers associated with real estate investment by investing through companies as most companies employpersonals that are trained to handle the pressure situations that often crop up in real estate investment. The investors who see the market clearly and make decisions based on the best evidence would get much profit from the real estate investment company. The investors can achieve the financial security and freedom which enables them to pursue other involvements.

Acquisitions, property management, due diligence, redevelopment, leasing, debt analysis and procurement, tax documentation, disposition analysis and detailed monthly reporting are some of the important services provided by real estate investment companies. Real estate investment companies are also referred as Real estate investment trust (REIT). Real estate investment companies have special federal tax treatment and must comply with certain tax requirements. There is a slight difference between Real estate investment companies and real estate investment trusts. For a company to become a real estate investment trust, it should share out 90 percent or more of its taxable income to its shareholders once in a year.Before selecting a particular company, look whether they are registered under proper acts. Get as much information on a company from as many sources you can.

Institutional investors now back in UK residential rental housing: What does it mean?

Investors such as Prudential are now buying to-let residential housing in England. After decades of absence, the housing crisis seems to be the driver.

The quadrupling in the size of the private rented housing market in the UK over the past decade reached a watershed moment in 2013: institutional investors are now getting back into quality rental housing ownership. Prudential PLC ended a 30-year absence from investing its assets in the sector with the purchase of 500 newly constructed homes, promising to increase its portfolio there in the future.

Since the 1970s and 1980s, individual landlords with small portfolios largely dominated the landscape in private to-let housing. Indeed, the National Landlords Association says that a growing proportion of private landlords – currently, 73 per cent – rent only at market-rate, not to recipients of local housing allowances. Some of this can be attributed to the strength of the rental market, as more working people can afford to pay rent but are unable to buy their residences.

The introduction of the 1988 Housing Act changed the scenario for private landlords, as they were enabled to charge market rates for housing. About two-thirds of residential rental properties are held in small (one or more units) portfolios owned by individuals. The remaining one-third is held by companies that, for the most part, are real estate firms.

But the long-term cash flows of rental property look increasingly attractive to institutions with money to invest. Analysts note that residential compares well to commercial properties, where deep-pocketed investors have been concentrating their assets in recent decades. Additionally, development of raw land sometimes focuses on the rental market already, where the market demands it. Residential properties beat commercial in both total returns and risk adjusted returns, in addition to outperforming equity and gilt markets. The total annual return for to-let residential investments is 9.78 per cent (vs. 5 per cent for commercial), according to analyst M&G Real Estate (formerly known as PRUPIM).

One attractive aspect of the residential rental market is that it is more inelastic to economic downturns than with commercial. In an economic trough, commercial spaces empty as businesses shrink or close, but housing is more resilient as even unemployed people find ways to stay in their homes if at all possible. Elsewhere in the Eurozone – Switzerland and Germany in particular – a robust institutional rental market has always been healthy.

But perhaps the biggest driver in the UK rental market is a simple acceptance that ownership is beyond the reach of much of the country’s burgeoning population. With 7 per cent growth over the past decade (Census 2011), the country’s homebuilders are only constructing half as many homes as needed. The tight supply, as well as stringent lending and unattainable deposit requirements, have made renting the only rational option.

Strategic land partnerships and homebuilders are responding to this shift by building for to-let owners. Indeed, land development specialists who assemble investors (often operating as capital growth partners) are now speaking to local planning authorities about the rental option. Where employers need people living nearby, rental housing may be the answer – particularly if workers need to be flexible to moving. With companies such as Prudential entering the market, competition for good properties may heat up.

Interested investors in any type of housing need to go about it with due caution. Many choose to invest via land investment funds that are managed by a strong team of strategic land investment advisors. Speak with an independent financial advisor to examine where land and property investing fits into your overall portfolio risk profile.