Investment Losses

James Leitz asked:


Bill Gates probably doesn’t invest in mutual funds (funds), maybe because most of his money is tied up in Microsoft stock.  Warren Buffet made his billions by managing investments, so he does not need their help, either.  But, if you have money to invest and don’t really know how to invest and manage an investment portfolio, you should consider investing in mutual funds.  Millions of average investors do.

Keep in mind that mutual funds are designed for folks who want professional investment management at a moderate cost.  These are not short-term investments, but rather are for people with longer-term investment horizons.  Once you have cash reserves in the bank for short term needs like emergencies, you are ready to invest.

 Should you invest in mutual funds?  If one or more of the following apply to you, you probably should.

If you want to accumulate a nest egg for retirement, give these investment packages consideration.  For example, if you have a typical 401k plan at work, most of the investment options available to you are mutual funds.

If you decide to open a traditional IRA or Roth IRA, consider going with a major mutual fund family.  This will give you a wide array of investment options, from safe and conservative to aggressive and growth oriented.

If you want to start slow and learn how to invest as you go, you should invest in mutual funds.  For example, you can set things up so that $100 a month automatically flows from your checking account to a couple of mutual funds within a fund family.

If you want to invest in stocks and/or bonds, but don’t know how to invest in them, join the crowd and do it the sensible and easy way with funds.

If you have a lump sum of money to invest from a retirement plan, a CD that matured or from an inheritance, look no further.  For example, if you leave your job where you had money in a 401k, you can move it and avoid taxes and penalties with a direct rollover to a mutual fund family.

If you are retired and want to earn a higher return with relative safety, try bond funds in addition to money market funds.  When you want to receive a monthly income, they will send you the amount you specify.

If you want an investment in real estate, oil & gas, or gold the easy way, invest in mutual funds and let them deal with the details.

It doesn’t matter if you are young or old, rich or of modest means, conservative or aggressive as an investor.  You need an investment portfolio that contains a variety of investment types.  Unless you really know how to invest and can manage your own stocks, bonds, and money market securities…you should invest in mutual funds.

Finally, if you don’t know much about investing…you’re probably a red-blooded American.  As a financial planner I worked with folks from all walks of life.  Few knew how to invest on their own, so I often recommended mutual funds.



CLEO

myinvestorsplace asked:


Investment is the choice by the individual to risk savings with the hope of gain.

Investment is not just a blandly apolitical process by which money is mysteriously made to grow, but a process in which governments and companies define, redistribute access to assets, determining who accumulates wealth and at whose expense. To influence this process, the public needs to know how investment works, who are the main players and what their trends.

Foreign direct investment (FDI) is not clear route to economic growth, but, for various reasons and in many cases, FDI leads to an outflow of capital rather, than an inflow in some countries. A transnational corporation engages in several types of foreign investments. Foreign direct investment (FDI) is an investment by a firm in a foreign country to acquire real assets such as equipment, plant, and land or real estate with the aim of maintaining control over the management.

There are so many Specific views, plans or ideas to invest money effectively. Investment ideas involve advice of an investment advisor and the expertise who recommends different investment tools based on individual circumstances. There are so many social networks which are available for investors that discuss interesting and informative ideas in all the aspects of the investment world. Investment idea for a particular investor will depends on that person’s stage of life; this is one of the main factor investor has to make a note. Young investor can take more risks, so advisor will like to recommend stocks or mutual funds to younger investors. Investors who are approaching retirement, however, will most likely find it more beneficial to take on lower-risk, short-term investments such as bonds and T-bills. Another factor that affects investment ideas is the risk-return tradeoff. Each investor has their own sensitivity to risk, which will influence investment decisions. It’s interesting how people associate time with money - they talk about it in monetary terms: they can spend it, waste it, or invest it.

The fundamental decision of business management is the investment decision. Managers determine the investment value of the assets that a business enterprise has within its control or possession. These assets may be physical such as buildings or machinery, intangible such as software, , goodwill, or financial. Assets are used to produce streams of revenue that often are associated with particular outflows or costs. The manager must determine whether the of the investment to the Organization is positive using the marginalthat is associated with the particular area of business.

In terms of financial assets, these are often marketable  such as a company stock such as an equity investment or bonds such as debt investment. The goal of the investment is for producing future cash flows, while at others it may be for purposes of gaining access to more assets by establishing control or influence over the operation of a second company. The investment tools and ideas are provided by some social networking sites.



COREY