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Tuesday, October 30, 2007

Enjoy big returns when you invest your money.

We are in the age where there are many kinds of investment instruments that we can invest. Investment is so common that almost everyone has some kind investment in their life. Investment however is also confused with trading. Some people think that they can lose their initial capital and lose all their money in investments.

This is not true because investment generally have a long time horizon. With longer time horizon, more money can be earned from compound interest. Unlike investing in real estate, investing in any financial institutions gives you compounded interest. The rich do not get richer by investing; they get richer because they invest in a very long time horizon.

When you decide to invest your money, you must be aware that you need to commit to your investment in a long term basis. There are no short term gains in unless if you are trading.

I have a personal friend, Joseph, 38 years of age, who invested his money 8 years ago. He invested in a unit trust that gives a potential return of 5% to 20%. His initial aim was to save his money in an account that can give him more interest than what the bank is offering in a fixed deposit scheme. Just recently he drew an amount totalling up to $160,000 and used the money for his home renovation and bought a holiday for his package for him and his family to Europe. He told me he only saved $800 a month and deposited the money into the unit trust.

I am sure that you will also want that kind of money in the future. Let it be for your child’s education, a dream renovation, your dream vacation, your dream car; it all possible to achieve if you start today.

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