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Investments

Looking For Financial Investment Advice?

Investing in financial instruments is widely regarded as an advisable and profitable channel of income-generation. However, the risks of incurring large financial losses remain too, particularly if you are a newcomer in the financial market. In fact, prudent investment decisions need to be formed, so that profits can be enjoyed, over the long-run too. There are many professional business firms that offer investment services to individuals. Apart from taking help from these firms, individuals also should hire an expert financial planner. The latter would be able to provide knowledgeable and viable financial planning advice to clients. Such advice, if followed properly, can go a long way in securing the financial future of the investors.

Recommendations related to financial planning and investment services can be varied in their nature and quite large in quantity as well. Some of the very basic rules that need to be followed while forming investment decisions are:

a) A certain portion of income needs to be put away as savings on a monthly basis. A portion of all increments should also be saved. This helps people build a decent stock of wealth over time.

 

b) Investments that are deemed to be extremely risky should be avoided, at least when one starts out in investment.

c) While making investments, individuals need to diversify their portfolio. Ideally, not more than five per cent of one’s total invested amount should be in a single sector. This, guards against any potential drastic losses due to a severe downturn in a particular segment of the market.

d) The basics of borrowing from different sources, including banks, need to be thoroughly understood. In particular, one needs to know the difference between the quoted ‘nominal’ interest rate of banks on loan amounts, and the actual ‘effective’ interest rate that is charged.

e) The frequency of payment of your interest (monthly, quarterly or yearly) needs to be kept track of. If people do not have the time or knowledge to invest directly on shares and monitor the proceedings, they can invest on unit trust funds as well, and

f) The costs of the different investment products need to be considered. A detailed break-up of the different components of the total cost should be studied. Cost levels vary across investment instruments, and one should know if they are too expensive or not.

The above are some of the simplest financial investment advice, which a financial advisor might provide you with. These would help to a great extent in ensuring that the investment decisions you take are correct, profitable ones.

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Investments

Financial Investment Planning Process to Get Started

Investing your money is probably the best use of funds you own. However, if it is invested in various financial products without proper research, you can lose every thing you owe. Hence, the process of financial investment starts with effective planning and research.

But you cannot start with financial investment planning if you don’t have a specific goal in mind. Hence, one of the foremost requirements is ascertaining a goal. It can be either of the two goals mentioned below:

– Conservation of existing funds
– Growth of existing funds
– Or both of them

What you do with the money you conserved or grew depends on your personal preferences. Unfortunately, not many people have goals in their mind before investing their money. Hence, they money they create or conserve is misused often. Financial investment planning involves going through a step-by-step process. Let us have a look at it.

 

– Setting goals
– Analyze your risk taking ability
– Asset Allocation or portfolio designing
– Select investment products that suits your needs
– Regular monitoring of your investment
– Redesigning your portfolio when necessary

This is one of the money processes to go about investing your funds. You can alter this process according to your needs. This is, however, a very broad one and may be applicable to every individual.

Just knowing the process isn’t important. You must know about all the available investment options and know which one to invest in.

If you don’t intend to take much of risk, you can invest your money in cash products or cash equivalent products like currency, bank balances, money orders, coins, GIC, commercial papers, T-Bills, money market accounts, saving accounts, Certificate of Deposits, and so on. These are comparatively safe investment products.

If your risk appetite is a bit higher, you can invest in products like mutual funds, stocks, and real estate. It must be noted that there are various ways to invest in each of these products. For instance, you can invest in real estate by investing in REIT (Real estate Investment Trust), Real Estate Funds, Property, Rental Property, and so on.

For people who want to seek high profit and are ready to take bigger risk, products like stocks and derivatives are probably the best options. Specialized knowledge, however, is required to gain from these products. Stock may be further divided into aggressive growth stocks, common stocks, and American Depository Receipts. Derivatives too can be divided into futures and options.

Financial Investment Planning wouldn’t happen just by itself. It requires enormous planning, proper implementation, efficient follow-up, and essential redesigning. There is, however, a popular myth that investment is for rich people. Rich or poor, every one wants a secured future. Every individual is vulnerable to financial emergencies, and one must always be prepared to face it. And there is no right age to start investment planning. Even if you are nearing retirement, you must start investing. However, the early you start, the better it would be for you.

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Investments

An Overview of Banking, Investment and Insurance

A wide range of employers feature in the banking, investment and insurance sector of the UK, including building societies, investment banks, commercial banks, broking firms and insurance companies.

Investment/ Wholesale Banking – Offering the highest risk, investment banking relies upon the state and performance of the world’s economy. This sector is based on providing specialised financial advice and services to commercial, industrial and government clients. It is said that half of all European global investment banking happens in London.

Retail – This sector cover the services provided in high street banks to small business and individual customers via the banks branch network. Private banking is one of the fastest growing areas in all financial services in recent times; it is when services are offered to high net worth individuals. It is similar to traditional retail banking but offers more services to help wealthy clients look after their money better.

One of the main concerns of retail banking in the future will be coping with identity fraud and the result from the Office of Fair Trading bank charges investigation.

 

Investment/Asses Management – Asset management firms have had to develop and improve their operations by provided better opportunities for clients due to the global market and improved technology. The UK is home to third largest market for asset management. Individuals who work in this sector will need to be aware of both national and international trends and to keep up for new emerging markets.

Financial Advice – IFAs/Independent financial advisers supply advice and information to both businesses and individual clients on products and services that include, investments, pensions, insurance and mortgages.

Many IFAs are self employed and have a group of clients that they will work for on a commission basis. But moves have been made to make fee based services more common than commission services to improve public confidence.

Insurance – The insurance sector in the United Kingdom is the largest in Europe and the third largest in the world. It is considered to be the largest employer in the financial services sector with an estimated 340,000 people working in it, which is a round a third.

So does working in one of these sectors sound appealing? It should be noted that while jobs in the financial, investment and insurance world are often well paid and with excellent benefits packages, they do require a lot of time and effort and can be extremely stressful. Talk to a professional Finance Recruitment company to discuss your options and how to start your career.

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Investments

Wealth Building – How to Stop Stressing With Your Investments and Start Building Financial Freedom

Life is too short to spend it stressing out over your investments…whether they’re going up or down or directly into the dirt. All of the uncertainty surrounding investments is enough to make you want to stick your cash into mason jars under your bed and be done with it. Thankfully, you can put a stop to stressing over investments and start enjoying peace of mind and success. All you have to do is start focusing on the investment strategies are timeless and which give you the greatest sense of control. Let’s look at two investment strategies which I’ve found to be pretty pain-free and great for increasing personal wealth.

Investment Strategy #1: Real Estate

No matter where you are, I want you to think about just how persistent the need is for people to purchase real estate. Everyone who needs a home needs to live somewhere, whether they’re renting from someone or mortgaging or purchasing a house outright. This means that if you invest your money into real estate, you’re investing it into something which is always going to have value. Real estate is one of the only investments which can never hit zero, although it can go down quite a bit at times.

 

However, even when the real estate market is taking a nose dive, you can still rent out the properties which you own until you find yourself in a position where selling them for a profit is an option. Many people think of real estate in terms of only buying low and selling high, which is why a lot of people end up losing money. However, if you learn how to read the market, you’ll know when to buy, when to rent and when to sell. This is when real estate starts becoming a smart and stable investing strategy.

Investment Strategy #2: Your Own Business

Investing money into your own business is perhaps the most stable investment strategy which you can engage in. It’s like investing into your education, where you’re also acquiring assets that can help to create wealth using your specific knowledge and expertise. For example, if you invest money into having a product created which you can sell for years to come, you’ll have a form of wealth which can help you to earn money over and over and over…perhaps even for life (depending on the type of product).

Thankfully, with the automated technology of the internet and the global economy, creating your own signature product is now easier than it has ever been. As long as your investment goes towards building an asset which has real value to people, investing in your own business or brand can prove to be the most profitable and secure investment moves that you can make.