When it comes to investing-it's a risky business. Just like gambling you never really know what you're going to wind up with or how successful you'll be. However, with great risk comes great reward and many investors realize this early on. In order to minimize your risk as much as possible it's a good idea to avoid any potential mistakes that you could fall into. Here are the 3 mistakes you can't afford to make.
Mistake #1 - Getting started without first knowing the basics. If you're brand to investments then you'll want to brush up on some basic knowledge first. Simply handing your money over to a brokerage firm or finding your way in the dark is a great way to go broke fast. That being said, taking the time and effort to actually learn about how to be a good investor is extremely important for being successful. Jumping in as soon as possible without any background knowledge can only leave you discouraged and broke.
Mistake #2 - Ignoring the urgency of diversifying. Many people blindly begin to invest in whatever they think will have a decent return and maybe in the short term this is a good idea, depending on your goals. However, long term speaking it's a better idea to diversify your assets and get your fingers in a lot of different things. This is a great way to protect against losses and increase performance over a longer period of time.
Mistake #3 - Making investments without a clear goal. This is a major mistake that many beginners make. Not having a clear goal or objective for your portfolio is a sure fire way to be perpetually distracted and passive about your investments. Make sure you have a clear and set goal along with a deadline to have your goal completed by. This will help keep you on track and working towards your objective.
Investing is a terrific way to grow your money and get a good return but always try to think outside the box and see where else you can increase your financial growth. It's also important to remember not to make other mistakes that can be easily avoided. Always make sure you do your research on new investments and minimize your risks at all times to make sure you reduce the potential losses from a poor decision. Through being smart with your investments and avoiding these mistakes you can have great long term success.
Thursday, July 1, 2010
Bullion Investments
Official figures out show gold bullion prices have risen for yet another day as people continue to get jittery over exactly how much their paper money will continue to be worth. Fears over mounting debt in the western world have fuelled a demand for gold and precious metals that mean prices have climbed 13 percent this quarter - the most since 2007. If you are looking at gold bullion investments, will buying gold bullion alone protect your wealth?
The facts are difficult to ignore: amid the fanfare that the worst of the recession is over, American companies did not increase their workforce as much as predicted and some reports show that business expansion actually slowed compared to last month. Seen as a sign that the US workforce is struggling, this provoked a desire to protect wealth in the face of an uncertain economy, and many turned to gold bullion.
Historically, it has been proven that gold bullion has the ability to ignore global recessions and does well when other forms of investments fail. It has soared in value when currencies fall and grows from strength to strength in times of high inflation.
We are living in uncertain and unprecedented times. The riots in Greece over currency devaluation has provoked fear and it is only natural that people turn towards the one thing that has stood the test of time in not only increasing their wealth but also protecting it.
In the light of the above, one could argue a very strong case that gold alone is the best wealth protector and you should go all out to increase gold bullion investments. However, I would like to point you towards wealth creation alongside wealth protection - one that can even produce in these uncertain times.
The internet explosion has opened up multi-million dollar industries. Having had this technology unleashed into the world, there is no going back - there will never be a time in the future where the internet will pass away as 'a phase'. Increasing technological inventions will continue to bring new visions and ideas to a computer near you - whatever that may look like. This in itself will continue to open up many more million dollar opportunities.
Protecting your wealth also means finding new ways of increasing your wealth. If you knew there was a key that would open the door into a prosperous future, would you take it? Would you be prepared to invest your time and money in learning new knowledge that would equip you to survive a volatile work market for many years to come?
The facts are difficult to ignore: amid the fanfare that the worst of the recession is over, American companies did not increase their workforce as much as predicted and some reports show that business expansion actually slowed compared to last month. Seen as a sign that the US workforce is struggling, this provoked a desire to protect wealth in the face of an uncertain economy, and many turned to gold bullion.
Historically, it has been proven that gold bullion has the ability to ignore global recessions and does well when other forms of investments fail. It has soared in value when currencies fall and grows from strength to strength in times of high inflation.
We are living in uncertain and unprecedented times. The riots in Greece over currency devaluation has provoked fear and it is only natural that people turn towards the one thing that has stood the test of time in not only increasing their wealth but also protecting it.
In the light of the above, one could argue a very strong case that gold alone is the best wealth protector and you should go all out to increase gold bullion investments. However, I would like to point you towards wealth creation alongside wealth protection - one that can even produce in these uncertain times.
The internet explosion has opened up multi-million dollar industries. Having had this technology unleashed into the world, there is no going back - there will never be a time in the future where the internet will pass away as 'a phase'. Increasing technological inventions will continue to bring new visions and ideas to a computer near you - whatever that may look like. This in itself will continue to open up many more million dollar opportunities.
Protecting your wealth also means finding new ways of increasing your wealth. If you knew there was a key that would open the door into a prosperous future, would you take it? Would you be prepared to invest your time and money in learning new knowledge that would equip you to survive a volatile work market for many years to come?
Double Digit Return
In any real estate market imagine earning 10% to 18% and often much more on your investment. Most investments will fluctuate in value, have a low rate of return or are affected by market trends. But there are investments that do keep their value and generate a high interest rate of return for the investors. These investments are known as Tax Lien Certificates and until recently were dominated by institutional investors, savvy investors, wealthy investors and occasionally novices. Many of these investors eventually got the houses or properties associated with the tax lien certificates for "Pennies on the Dollar" through a tax deed (a byproduct of tax certificate ownership).
Tax lien certificates are nothing more than unpaid property taxes that generate a very high interest rate of return to the investors buying them. But they have made many investors extremely wealthy and provided a very comfortable lifestyle. The biggest problem though is very few people know how to capitalize on the existence of a tax certificate. Everyone has heard the saying "Knowledge is Power" and it is very true, especially when you are investing your "nest egg" or money needed in the future. The previously described investors do not want this knowledge brought to everyone's attention because this would cut into their bottom line.
The internet has opened up the ability for anyone interested in learning more about investing in tax liens and tax deeds to do their own searches. Also, there are many tax certificate investors that have opened niche markets to help the novices buy tax certificates for themselves.
Tax lien certificates are nothing more than unpaid property taxes that generate a very high interest rate of return to the investors buying them. But they have made many investors extremely wealthy and provided a very comfortable lifestyle. The biggest problem though is very few people know how to capitalize on the existence of a tax certificate. Everyone has heard the saying "Knowledge is Power" and it is very true, especially when you are investing your "nest egg" or money needed in the future. The previously described investors do not want this knowledge brought to everyone's attention because this would cut into their bottom line.
The internet has opened up the ability for anyone interested in learning more about investing in tax liens and tax deeds to do their own searches. Also, there are many tax certificate investors that have opened niche markets to help the novices buy tax certificates for themselves.
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