jsydrms.info

Investors are increasingly forced to choose from a proliferation of investment options. They also have to deal with contradictory advice on how to achieve their financial goals and how to invest the savings they have accumulated during their lifetime. If you consider that there are more than 7000 mutual funds available in the United States alone, and thousands of insurance products worldwide, making the choice that will satisfy them ever after is daunting, to say the least.No wonder people so often ask the rather general question: Which investment is best? The first part of the answer is easy: No single investment is ‘the best’ under all circumstances for all investors. Personal circumstances, goals and different people’s needs differ, as do the characteristics of different investments. Secondly, one asset class’s strength in certain circumstances could be another’s weakness. It is therefore important to compare investments according to relevant criteria. The art is to find the appropriate investment for each objective and need.The following are the most important criteria:
the goal of the investment
the risk the investor can handle
liquidity required
taxability of the investment
the period until the financial goal is reached
last but not least, the cost of the investment.THE GOALGoals determine the characteristics sought in an investment. You will be in a position to choose the most appropriate investment only when you have decided on your short-, medium- and long-term goals. The following generic goals are normally involved:Emergency fundEmergency fund money should be readily available when needed, and the value of the fund should be equal to about six months’ income. Money market funds are excellent for this purpose. While these funds do not perform much higher than inflation, their benefit is that capital is saved and is easily accessible.If you already have a ready emergency fund covering more than six months’ income, you could consider a more aggressive mutual fundCapital protectionIf your primary aim is capital protection, you will have to be satisfied with a lower growth rate on the investment. Those above 50 are normally advised to be conservative in their investment approach. While this may for the most part be sound advice, you should also keep an eye on the risk of inflation, so that the purchasing power of your money does not depreciate. It is not the nominal value of the capital that should be protected, but the inflation-adjusted one. At an annual inflation rate of 6%, $1 million today will buy the same as $174 110 in 30 years’ time. A 50 year-old with $1 million would therefore have to lower his living standard substantially if he only retains the $1 million until he was 80.Conservative investments like those listed above should form the normal basis for providing an income. Because of inflation risk, investments should be structured so that they can at least keep up with inflation. This means that at least a percentage of the investment source providing the income should be made up of other asset classes like property and equity mutual funds. The percentage would differ according to individual and economic circumstances.Investors fortunate enough to have their basic budget provided for by a conservative fund could consider increasing their income with commercial property funds and tax-free income from dividends paid out by listed shares.Capital growthIf an investor’s primary goal is to achieve capital growth, the real rate of return should be higher than inflation. This implies greater risk to capital in the short term. Investors aiming at capital growth should not be apprehensive, as they will reap the rewards in the long term.The history of equity prices over the past 100 years proves equity investments to be the best performer, followed by property. This does not mean you should buy either of these investments blindfolded. Wait until the quality shares in which you are interested are trading at inexpensive price levels.RISKThe investment with a history of the highest growth is not necessarily the one to choose. The Standard Bank’s Gold Fund increased by 178% during the period 13 August 2001 – 24 May 2002 (284 days). Judging only on the growth of the fund during this period, it performed exceptionally well. But would it be the right investment for a retiree? During the 805 days following this, the same fund experienced a negative growth rate of 44%! The problem with an investment that decreases by this percentage is that it will not reach its previous peak by increasing again by 44%. This is because the growth this time will take place from a lower base, so in fact the investment would have to increase by approximately 80%.LIQUIDITYHard assets like Persian carpets, works of art and antique furniture may be good investments in the long term, but unfortunately they are not very liquid. The same is true of certain shares in smaller companies. Money market funds, on the other hand, are very liquid, but the returns may not always be as good as those from other investments. The need to liquidise the investment quickly is therefore also a criterion to consider when evaluating investments.TAXABILITYThe taxability of an investment has a considerable impact on its value to the investor. When comparing the returns on different investments, the return after tax has been deducted should be used. The investor should always ask what will be left in his pocket after tax deduction.PERIODConservative investments with no potential for high returns are suitable for shorter periods, while investment-objectives with longer time horizons aspire to achieving higher returns. Money market funds are suitable for periods of one or two years. Income and conservative asset allocation funds for three or four years and flexible asset allocation funds, commercial property funds and value equity funds may be chosen for longer periods, dependent on the economic and interest cycle and the propensity of the investor to accept risk.COSTSThe costs involved in an investment are normally things like administrative cost and commission. The percentage of the costs to the investment amount directly affects the value of the investment. Many of the currently available investment products are structured in such a way that investors can negotiate commission.CONCLUSIONNo investment strategy blueprint is going to be perfect for everyone’s circumstances. Investment opportunities should therefore be examined critically before any decision is made. It should also be kept in mind that there are different companies managing specific funds under the investment categories referred to above. Some are more effectively managed than others. Investors should therefore research investments as well as the managers thoroughly before investing. Otherwise, they could appoint professional asset managers to do so on their behalf. Time spent determining the type of investment you really need is time invested in your future financial well-being.

When it comes to family travel, almost nothing compares to the challenges of traveling with teens. Sure, traveling with infants is no easy task, but as the parent, you really can set the tone for the trip. But with teens – all that changes. It’s during these years that your kids may assert themselves more, sleep in and expect everyone to cater to their schedule – or worse yet, ask to stay at home instead of indulging their moms and dads with the long-awaited family vacation.The good news is that all is not lost. You just have to find out what makes your son or daughter “tick” – and include them throughout the family travel planning process so you can create an itinerary that works for you, them and the rest of your brood. Some simple ways to do this include:· Formulating a list of destinations together, then whittling it down to somewhere you can all agree on.· Selecting a hotel that specializes in family travel. Many of these types of accommodations will feature amenities for everyone in your family, including pools, spas, tennis, outdoor activities, beaches and even special day camps for younger kids.· Asking your teens what they’d like to get from their vacation – then challenging them to find events and attractions that meet their needs (and would be appropriate for everyone in your family).· Once you’ve arrived, give them a taste of life beyond their teens by leaving your younger kids with your spouse or a babysitter and spending a night on the town. Go to a nice dinner, hit the theater or listen to some live music. This will help your teens see you through new eyes – and give them a glimpse at the experiences that lie ahead.· Giving your teens a day to plan activities for the entire family – from where to eat breakfast to how to spend the evening. You’ll not only get to know your teens better, but doing all of the family travel planning for the day will give them a sense of responsibility.· Cutting them some slack. You don’t want to put teens in the middle of a new city and let them fend for themselves, but giving them a little breathing room on your trip might be a good thing. Even if it’s only separating for a couple of hours at a museum or letting them catch a movie while you go to lunch with your spouse, it just might do you – and them – a world of good.For those of you with just one child… a teen… it may behoove you to allow him or her to bring a friend along. Although this extra person will certainly add a twist to your usual family dynamic, it may well prove to be a fun, positive thing for you and them.

A lot of people think that operating a home business is something that is hard to do, but it’s actually something easy if you apply yourself and learn the information. Look at this article with a careful eye and see what information you can take and use towards your home business goals.

One of the reasons why many people decide to become involved in home business is so that they have more time to spend with their kids. However, as their business grows, they also easily find themselves in situations where their kids impede their ability to work effectively. Just because it is a home business however does not mean that a nanny, babysitter or daycare center is out of the question. Don’t ignore these resources just because of the fact that it is a home business!

Study your competition carefully. Understand their pricing and know where you fit in. Never say negative things about your competition. Have your ever noticed that malls are full of clothing stores that all manage to keep doing business? Competition brings out the best in different businesses and every business has its own unique nuances that draw different customers. Talk up your own business, your products’ features, and how they benefit your customers.

If you already have a degree in business management that is great, but you should still continue to read as much as possible. If you don’t have a degree in this, don’t worry, you will still be able to catch yourself up through self-teaching and even hands on experience. Many of the best business professionals never finished college.

Use an attention-grabbing name for your website domain. There are many different websites and you want to make sure that yours stands out from the rest. A catchy name can be the perfect thing to get traffic to your site, it will be easy for a potential customer to remember and easy for them to access.

Decide if you are going to be involved in every aspect of the business. When starting a new business, having a staff of full time employees might not be financially possible and many of those tasks have to be handled on your own. As the business grows and money flows in, you can think about hiring personnel to call customers, collect receivables and thousands of other tasks that a small business needs to get done.

You should try contacting a local radio station and making a deal with them to barter products for a small bit of airtime. They can use your products for prizes in contests or free giveaways and in turn, they can mention your business as the place where they got these products.

With all of the information you just learned you want to try to do the best of you ability to apply it towards your home business. The thing about being successful in home business is that you want to continue to expand your knowledge and apply it. You should see success in no time.