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Saturday, August 18, 2007

Be a Smart Investor!


The word investment is greatly mistaken for only to stocks and shares. When someone says he invests his money, automatically other people will think that it’s the stocks market. But do you that you can invest your money in a less risky or even no risk type of investment?

There are investments that will guarantee you same kind of income. However, as risks and returns are conversely related, you will not get as much returns in a no-risk or less risk kind of investment. In short, the higher the risk, the higher the expected returns and expected returns will low if the risks are low.

Does this mean that you have to be a risk taker to get more returns? The funny thing about investment is that you can enjoy growth in your investments in a risky kind of investment. Over the years, many people had come up with formulas, ratios, theories and ways to minimize risk.

Risks itself are divided into 2 kinds of risk; systematic and unsystematic. Systematic risks are risk that cannot be diversified where else unsystematic risks are risk that can be diversified. To understand these risks is not a simple task. One must be well- equipped and very knowledgeable.

If you are not a finance kind of person, you can approach brokers, financial planners and financial analyst for their service. Of course, there will be a price to pay for their services. But if you calculate the servicing cost and the loss from your investment, it will be wise to get their service.

After you get their service, you still have to learn some basic knowledge on investments. You have to ask your agents some basic knowledge so that you do not solely depend on them. These agents have many other clients who are investing money using the agent’s service; you have to be proactive in order to be a smart investor. By being proactive, you can be rest assured that you will not lose as much money.

For readers from Singapore, you can engage my services as your financial planner. I will provide you with all the necessary tools not only for your investment, but also your tax planning, retirement planning and estate planning. I will educate you and train you on how to maximize your wealth, get away from debts and achieve your financial freedom day. Email me your contact details and I will get back you the next working day.

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