Invest for Future 2

Financial Planning & Life Cycle Strategies

The amount of money to be invested in various assets depends on :

• your goals and needs
• your age at the time of investment
• your income at the time of investment
• your occupation
• time horizon
• liquidity
• tolerance for risk

What is Your Risk Profile

When determining your risk profile, ask yourself the following questions :

• What stage are you at in your life?
• Is your goal short-term, medium-term or long-term?
• What kind of 'money personality' do you have?
• Are you willing to accept short-term movements in the value of your investments?
• Are you prepared to accept higher risks for greater returns?

Getting Financial Advice

There are a number of parties offering financial advice examples bank, remisiers, financial planner or insurance agents depending on the types of investments involved. However, before your choose your financial adviser, ensure that the person is suitably qualified to give any advice.

Source of Information

Information on investments can be sourced from :

• Published reports of the company
• Newspapers. journals and magazines
• Internet 
• Courses
• Seminars

Protect Your Interests

For any investments you make, keep in mind the following tips :

• Understand the investment and the risks involved
• Select financial advisers carefully if you are engaging one. Ensure that they are qualified and experienced. Ask questions and make sure you understand the issues and procedures involved. Seek second opinion should you have any doubts
• Don't be pressured into making a decision. Watch out for aggressive sales tactics that urge you to decide and act hastily.
• Keep records of all transactions you enter into
• Be wary of schemes which guarantee a quick profit with minimal or no risk

The DON'T in Investment

There are some practices that you should avoid when making investment decisions to minimize the risk of making a loss :

• DO NOT borrow to invest
• DO NOT invest just to get quick and high return
• DO NOT invest in high-risk investments unless you are ready for it
• DO NOT invest on the basis of 'hot' tips and rumours