The other challenge of investing is finding the appropriate, and safe investments. A lot of people fall prey to scammers. People never learn. Because most of us wants instant gratification, instant coffee, instant return on our money! In investing, we need to have a solid, and complete plan. We need to have a coach to increase your success rate.
There are given rules of investing, dictated by the Term of Investment (tenure), and Risk Rate of Return Trade Off. The Longer Term gives Higher Returns. The Lower the Risk, the Lower the Return. The Higher the Risk, the Higher the Return. And, Longer Term of Investment usually negates the Risks.
So you need to know How Long will you invest, and what risk can you take. What is your risk appetite? Do you go for higher risk? Can you take the risk for the money you invest? Do you need the money within a year? Or you intend to use it after 10 years? Your answer to this will lead you to the right investment vehicle.
Define your investment purpose. Determine your investment goals. Then you match your goals with the different investment vehicles suited for your term of investing as well as your capability to risk our money.
From these different investment vehicles, we master and executed the three levels of investing. Level 1 is our KAISER 4 in 1 which satisfies our basic investment foundation that prescribes we get into short term and long term health care, and life protection.
Level 2 is our Mutual Fund Investments.
Level3 is our direct stocks. Our level 1 investment is allotted for the H in HIDEE and we use Level 2 and Level 3 to cover for the remaining Purpose of Investing (IDEE).
Level 1 investing developed our habit of saving and investing as it is with due dates. It is also a perfect way to start for it has insurance protection that will guarantee we complete the investing even if we get disabled or worst case die.
It also teaches us the proper way of investing which is called Money Cost Averaging. This is a strategy that is less risky. The other way of investing is “Trading”. I always hear from a financial mentor that “85% of people who trade in the stock market loses their money”. I personally just do the Money Cost Averaging. It is simply investing same amount of money at a defined frequency, continuously, on a long term basis.
You need to ride on investments that will put money into our pocket. Not all assets are real assets based on definition of Robert Kiyosaki. “Real Assets puts money into your pocket”. Make sure we Invest only on Assets. We have to stop putting money on liabilities:
Again, as Robert Kiyosaki say, Invest on Assets. “Assets are anything you buy or have that puts money into your pocket”. So, after Getting our Level 1 Investment and Protection, we proceed to invest on Level 2.
Our level 2 is on Mutual Funds. Why is this? For beginners of investing, after completing the basic protection Fely and I re-allocated investments we placed in direct stocks to Mutual Funds. There are many advantages of Mutual Funds. I liken Mutual Funds Investing to simply buying a cake if you don’t know how to bake it yourself.
If you want to know more, ATTEND our FREE ON LINE WEBINARS
If you want to start to invest, contact me NOW at 0920-902-1217 or email me at richbenj.santiago@gmail.com
Happy Investing!
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