Be Savvy with Investments.
By Jack Hall
@mokgahla (4)
South Africa
November 15, 2014 6:18am CST
All investments are two sided like any bank note or coin, but financial advisors are likely to tell the one side. Any investment regardless of its form jas risk and return sides and they should be balanced. Even non-investing still poses this side.
Knowing both sides help you to take right decision, balance your return while managing and minimising the resist, build some réactions control when things go bad. I just want to focus on three investment types.
1 Shares-Most financial advisors stress that shares are high riskier investments, that can be true the shares can loose value and the company can collapse. This can be some disadvantages of shares, but the advantages are things like easy access and exit to market, non monthly commitment, can be bought only when cash flow accept. Capital appreciation.
2 Real estate-This is regarded as safest investment , but i would say is not safest. The advantages range from capital appreciation and rental income. The disadvantage may be monthly commitment to pay the bond, not easy to exit, no-tenanted, tenant vandalising the property and decline in value.
3. Saving-Highly liquid, you owe no one(no mortgage). But is vulnerable to inflation.
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