Lucrative Investment Strategy: A Good Plan to Grow On
Tuesday, November 22, 2011
The whole idea behind making financial investments is to get a good return on your investment. Making smart investments should be your goal. Not researching your options can possibly be the biggest mistake you can make. You want to learn as much as you can understand. Taking the time to find the most lucrative investment strategy can make the difference between you losing or winning.
How you choose to invest your money will most likely be based on how much risk you're willing to take. As with all investment endeavors, there is a loss risk. Having a good financial plan from the start is essential. Researching the various investment strategies can help you figure out what you feel safest with.
Buy Long
Buying stock long is not a lucrative investment strategy. With this particular strategy, you can only lose what you have put into it. It may sound good to know that it offers minimal risk; it also offers the least return.
Buy short, sell long
This strategy has a little bit of risk attached to it but can be lucrative if it's used properly. With this particular type of investment, the assets or securities that are being sold have been borrowed from a third party; intending on buying the same assets later on. The seller unloads the assets at a higher price. When the price of the assets drops, is when they pay the original owner. The seller is simply profiting from the drop in price. This strategy is profitable as long as the drop in price is substantial enough.
Buy and Hold
A passive technique, the "buy and hold" can be considered a lucrative investment strategy. The investor buys the stock and holds onto it, no matter what happens with the market. Equities to yield a higher return than assets do. This strategy is also beneficial tax wise because long term investments are taxed at a lower rate than short term investments.
Set triggers
This is not an investment technique but can also be considered a lucrative investment strategy. Set triggers for yourself. For example, a downturn in the market can be used as a trigger to buy stock that may have been too rich for your blood before. This strategy can aid in you acquiring very lucrative assets. However, you should set guidelines and limits and be sure to stick to them.
These are only four investment strategies among many. Only a professional truly understands how any of them work. Before you make any investment decisions, it would be wise to seek counsel. Let them guide you on how to make your money grow. Keep in mind however, that it is your money being invested. Just because they recommend it, doesn't mean you have to do it if you're uncomfortable with their suggestions.
Finding a lucrative investment strategy is a key factor in making your investments worth anything. The idea is to yield a return that is noticeable. As was stated before, with any investment there is risk. The right strategy should decrease the risk factor for you.
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Labels: Investment, Lucrative, Strategy
Best Investment Strategy For 2012 and Beyond
Saturday, November 19, 2011
The best investment strategy for 2012 and beyond will differ from the popular investment strategy offered by most investment advisers and financial planners today. The investment landscape has changed. Here's a strategy for making the best of it.
Up until recent times you could stay out of serious trouble by simply allocating about half of your investment assets to stocks and the other half to bonds. That's the traditional investment strategy often recommended for average investors, and most people deal with it by putting their money in stock funds and bond funds. Stock funds are the growth half of the equation and the risky part of the strategy. Bond funds are considered the relatively safe investment designed to pay higher interest income. Over the years losses in one fund type were usually offset by good returns in the other.
Welcome to the year 2012, where bonds and bond funds will likely not be such a safe investment. Stock funds are never safe and 2012 will be no exception to the rule. Asset allocation will be only half of the story going forward. Selecting the right funds within each category will be the other key to success. Let's look at your best investment strategy in both fund categories, and the reason why certain funds will be your best choices.
Two things stand out about the so-called recovery the USA has supposedly experienced over the past few years. First, the economy did not recover as it has in the past after a recession - 9% of the working force is out of work. This makes for a weak economy and puts pressure on the stock market and stock funds. That's why you'll need to be careful about which stock funds you include in your investment portfolio.
Second, interest rates have been driven down to historically low levels to stimulate the economy in general and the pathetic housing market. Even with a 4% mortgage rate average folks can not qualify for a mortgage or afford to buy a house. Today's ridiculously low interest rates mean savers can not earn a respectable interest income in truly safe investments. It also means that bond funds could be a trap in 2012 for people who don't really understand bonds and bond funds. Let's look at the best bond fund strategy first.
Even the best bond funds of the past few years could be big losers in 2012... if they hold long term bonds in their investment portfolios. When interest rates turn around and go back up the bonds they hold will lose significant value because new bonds will become available that pay more attractive (higher) interest income. Your best investment strategy for bond funds is to own funds that hold corporate bonds that mature in about 5 years to 7 years. CORPORATE BOND FUNDS pay more interest income than similar funds that invest primarily in government bonds. Funds that hold bonds maturing in 5 to 7 years (intermediate term bond funds) will be much less affected by rising interest rates than long term funds holding bonds that mature in 20 years or more. That's a fact, and that's how bonds work.
Your best investment strategy for stock funds will be to go with GROWTH AND INCOME funds that invest in high quality companies with a history of paying 2% or more per year in dividend income. If the stock market gets truly ugly in 2012 and beyond these funds will be your best bet to sidestep huge losses. In a bad stock market funds that pay little or nothing in dividends are usually the big losers.
Sometimes it pays to be aggressive and take on more risk. The year 2012 looks like a time to get more conservative and live to be a risk taker another day. Most investors need to hold stock funds and bond funds as well as truly safe investments like bank CDs. Your best investment strategy for 2012: allocate your investment assets with 40% going to INTERMEDIATE TERM CORPORATE BOND FUNDS and the same going to high quality GROWTH AND INCOME STOCK FUNDS paying 2% or more in dividend income. The other 20% of your investment portfolio goes to safe investments like bank CDs.
Author James Leitz teaches investment basics, stocks, bonds, mutual funds and how to invest in his investing guide for beginners called INVEST INFORMED. Put Jim's 40 years of investing experience to work for you and get up to speed at http://www.investinformed.com/. Learn how to invest.
Labels: Beyond, Investment, Strategy
Lucrative Investment Strategy: Know Where You're Headed
Monday, November 14, 2011
Who's to say what a lucrative investment strategy is for you? Your strategy, as an investor is most likely designed on your personal style and preferences. Which means it works for you, but may not work for others. No two investors handle their investments in the exact same way. Yet, there are things that are going to be consistent with investors across the board.
Don't get it misconstrued, there are some things that are just a given when it comes to investing in a smart way. There are steps that should be taken every time a new investment is about to be made. Some may see it as redundant, but it can be the difference between a wise investment and a catastrophe. These same steps are taken by most investors, every time.
To Chance It or Not
No matter whom you are or what your lucrative investment strategy may be, you are going to take the risk factors of any investment into consideration. Not even a novice investor would toss their money into something without weighing the pros and cons. That would be like playing financial Russian roulette.
Of course, risk is a part of any investment. You still need to know what the ramification will be in the event things didn't go as planned. Knowing what you are facing will allow you to create a counter plan. It is always better to be prepared.
Goals
Any lucrative investment strategy starts off with a list of goals. You have to know what you are trying to achieve with your investments in order to put your money into the right types of accounts. You wouldn't prepare for retirement by opening a college fund account. Clarity is a necessity when it comes to creating a lucrative investment strategy.
You will then create a plan, around the goals that you have set. This will navigate you in the right direction and ensure that you indeed have a good plan. The key is to stick to the plan. So, if you have to rewrite it until you are comfortable with it, do so. Just as you wouldn't use a treasure map without an "x," don't use a financial plan without a definite destination.
Diversify
No lucrative investment strategy is should be without diversity. How many times did you hear as a child, "Don't put all of your eggs in one basket"! That applies here. Spread your money around a little bit. It may sound a little too risky for you but the truth is...placing all of your money in one stock is more risky than you know.
Think of it, this way. What would happen if you put all of your money into one stock and that stock crashes? Everything that you were attempting to accomplish by investing in the first place, all is lost. So, if you have the money to invest in multiple stocks, do so. This is a situation where trying to be too safe can actually be more dangerous or you.
Are you looking for a low risk high return investment! If so download a true Rags to Riches story and learn how to double your money every week with little to no risk. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.thenetmillionaire.com/
Labels: Headed, Investment, Lucrative, Strategy, Where, Youre