Countries tend to go through interest rate cycles and a higher interest rate ensures a better return on your hard-earned cash. Inflation, if not accounted for, could devastate your savings. A rise in the interest rate must be considered in conjunction with inflation in order to assess its actual impact on your savings. Here are a few things to consider when saving in a rising interest rate environment.
Browsing Tag
smart investor
“The individual investor should act consistently as an investor and not as a speculator.” – Ben Graham.
Are you interested in trading on the global financial markets? If so, have you considered trading in options, or more specifically, SPOT options? What are SPOT options, and how can you place successful trades utilizing the SPOT option vehicle?
Do some research online about the different methods available to first-time investors, and you’ll start to see a lot about mutual funds. Effectively offering an alternative to personal portfolio management, these types of funds have become quite popular over the years with people who want to watch their investments grow, but aren’t sure how to make it happen on their own. It should be noted that a mutual fund is by no means a guaranteed success—and there is no such thing in the world of investing and financial management. But to help explain these funds’ general popularity, here are a few of the common reasons people seem to love them.
1. Money Is Managed Professionally
Curiously enough, this came up in an article on why rich people like mutual funds, in which it was simply stated that wealthy and successful people don’t pretend to know everything about money management. Why this angle needs to be presented as being exclusive to the wealthy is a mystery, however. Most people know far more about how we make money than about how to manage that money. Thus, perhaps the main appeal of mutual funds is that they’re handled by professional investors whose job is to make sure your finances grow over time.
In the last few decades ever more of us have started to invest in real estate. Arguably the appeal of sinking money into property has grown since the economic crash, as many traditional savings accounts and investment opportunities have offered ever-dwindling returns.
However, it would be a mistake to think that investing in property offers guaranteed riches. Quite the opposite; as competition for suitable properties has grown, so sourcing the right opportunity that stacks up financially has become ever more challenging.
If you’re considering making the shift from savings to real estate investing here are five of the biggest factors to consider before you purchase your first rental property…
Gold is one of those assets that people often get emotionally attached to – they either love it, or hate it.
But any successful investor will tell you that you need to be emotionally detached when choosing your investments.
On the one side you have the “gold bugs” – the world is ending, flee to a universal currency types. It’s a global currency, it’s immune to inflation and immune to government interference in an economy, they’ll argue.
On the other, you have people who point to gold under performing vs stock market prices and indexes like the S&P500, and even bonds over a 30 year period. Gold’s recent renaissance is just a phase, in their eyes. Warren Buffett even goes so far as to say it “has no utility” in typical, withering derision.
But no matter which camp you are in, you should have some gold in your portfolio.