5 Tips for Building Successful Investments

If you’re new to the world of investing, you’re no doubt in a state of anxiety, fear and confusion. While taking the investment plunge is a big step, the results can be extremely rewarding, a fact well known by Ron Bakir, founder and CEO of HomeCorp, a large Australian property development company. With years of experience in the business world, it’s not a bad idea to take a leaf from Ron Bakir’s book and read these five tips for building successful investments.

1. Define Your Goals

Before you even contemplate making an investment, it is important to take the time to sit down and etch out your objectives. How soon do you want to see a return on your investment? Do you want to achieve a large return? Ask yourself what you want to gain from the investment; your answers will directly affect what types of investments you pursue and the results will be more likely to alignwith what you define as ‘successful’. 

5 Tips for Building Successful Investments

 2. Know Your Risk Tolerance Level

Another vital point to consider is your tolerance for risk. Investing can be dicey and volatile, which is exactly why it is not suited to everyone. You could lose money or receive a smaller return than expected; are you financially secure enough to accept this result? Again, by being realistic with yourself and your need for security, you are bound to make decisions that result in a more appealing outcome for you.

3. Education is Key

If you are uncomfortable with placing your future in the hands of an expert like a financial planner or simply cannot afford professional advice, it’s up to you to get educated and savvy on all things investment. There are many magazines, websites, books and courses out there that will have you feeling knowledgeable and confident in no time. As with anything in life, you reap what you sow, so start spreading the seeds of knowledge now!

4. Diversify your Portfolio

A great way to minimize risk is to diversify your portfolio of investments. By distributing your money in a number of different asset classes, you will be safeguarded from fluctuations in certain markets and you will be rewarded with a more consistent and secure portfolio. Different types of asset classes include defensive investments such as fixed interest and cash and growth investments such as property and shares.

Don’t Forget about Me

That’s what your investments are saying every day. If you’re time-poor and are in charge of managing your portfolio, you may be missing out on making crucial decisions, resulting in lost profits. Successful investing also requires consistent contributions and re-balancing, so make sure that you give your investments the care and attention they need.

These five tips are simple and easily to implement, so don’t delay. Before you know it, you’ll be on your way to a large, successful investment portfolio!

Have you already invested before? Do you have a tip or experience to share? If so, leave a comment below.

3 Wise Ways to Use Your Tax Refund

Lump sum payments challenge our financial restraint. Unlike gradual changes, windfalls often cause impulsive spending, which are missed opportunities to improve our financial well-being.

The instant gratification of shopping binges may overpower putting a dent in principal balances or starting to invest.

Tax refund checks are a cash influx that most can relate to. With the average refund totaling near $3,000, several options to improve your personal finances are within easy reach.

Tax Refund

It is helpful to know what options are available to wisely your refund check. This helps you earmark funds before receiving money.

With the average refund totaling near $3,000, several choicesto improve your personal finances are within easy reach.

Whatever the amount, here are money savvy choices for your tax refund:

Begin Investing

You have several choices to start investing for under $100. These include mutual funds, exchange traded funds and direct stock purchase plans (DSPPs). Many folks dismiss starting with such a small amount, but overlook the power of compounding.

What is compounding? In basic terms, your dollars are more valuable today than in the future. This concept underpins inflation and other economic principles.

However, it has everyday value, as well. Mr. Elliott Broidy is an investment manager who often considers compounding when making portfolio decisions. The same leverage is also available to smaller investors.

Best Practice: Be sure to understand investment costs. If opening a brokerage account, ask about breakpoints where balances qualify for reduced commissions or costs. Consider flat free brokers or services that you can grow into as needs become more complex.

Otherwise, no load mutual funds and DSPPs allow you to invest directly without commissions.

Debt Reduction

High interest credit cards can make it difficult to pay more than minimum payments. This prevents your principal balance from being paid down and masks exorbitant interest expense.

Even with expenses trimmed to minimums, a lack of disposable income prevents many consumers from making progress on reducing their debt.

You will enjoy a dollar for dollar return when eliminating debt, as paying off a 13% credit card is equivalent to a 13% investment return.

Best Practice:  For the best results, apply your refund to the most expensive credit card or debt, rather than dividing payments among cards.

Start an Emergency Fund

For how many months could you meet expenses without a primary source of income?

Cash flow issues make it challenging to set aside money for unplanned events. These could include loss of income, medical bills or auto repairs, among others.

Unlike borrowing from retirement accounts, emergency funds do not affect your investments and are interest free.The peace of mind knowing you are more prepared for surprise costs is also invaluable.

5 Reasons to Seek Professional Wealth Management Advice

Money makes the world go round, so if you had the opportunity to make more of it why wouldn’t you. Professional wealth management companies specialize in giving financial advice to their costumers for a very reasonable fee. They provide many different services and help people in all sorts of different financial situations. Whether you’re just starting out on your financial journey or nearing the end of it and looking to retire, professional wealth management advice can assist you.

Just getting started?

Have you just got your first full time or part time job and have no idea what to do with your money? Professional wealth management advice can give you all the information you need about where to put your money and give you advice on how to best save what you earn. It can also give you advice and information about superannuation and tax, which is very useful for people who are just starting out on their financial journey. If you're interested in giving a percentage of your income to charity each month, you may even want to look into charitable trust administration with Crewe Foundation or a similar adviser to help your money go further where it's needed most.

Wealth Management Advice

Looking to start investing?

If you’ve been saving up your money in the bank, but want more than just your standard savings interest rate growth, professional wealth management advice can help. Professional wealth advisers can inform you on what investments might be best for your current financial situation and give you the ins and outs of the investing world. If you are looking for local investment management in Omaha, for example, you may wish to get in touch with Avior Wealth Management to see whether they could be someone good to work with. 

Want to plan for retirement?

If you’re looking to plan for your retirement, then professional wealth management advice is a great place to start. You’re never too young to start getting ready for retirement, and the right advice could have you planning a safe and secure retirement in no time. They’ll tell you everything you need to know about retiring and help you invest your money wisely. They can give you information about your future pension and your super’s savings. A stress free retirement plan is just a phone call away.

Having trouble saving?

If you constantly find yourself barely scraping by each week, with little to no savings, it may be time to get some help. It is equally important to seek advice if you have a history of debt, excess loaning, and or, bad credit ratings. Professional wealth management advice can help you find ways to save money and organise your spending. You would be amazed at just how much money a little financial advice can save you.

Got any financial queries or problems?

If you find yourself with any general financial problems or questions, it is always safer to go and get professional wealth management advice. Whether you are buying your first house and need mortgage advice or are looking to buy insurance, but don’t know where to start, financial help will set you on the right path and relieve you of a lot of stress.

No matter who you are, how old you are, or what industry you work in, everybody requires financial advice at some point in life. 

Can You Really Make Money from Home?

If you search the Internet for work from home jobs, you will be inundated with a long list of opportunities. Many of these postings promise huge pay for little work. However, it is important to keep in mind the fact that if something seems too good to be true, it probably is.

Today's consumers are dealing with challenging economic conditions. Because of this, many people are searching for legitimate ways to make extra money in their spare time. There are plenty of scams out there, but that does not mean that there is no way to make money from home. 

Can You Really Make Money from Home?

Read on to discover two innovative ways to increase your income without leaving your couch.

Consulting and Freelance Work

One of the easiest ways to make money from home is by leveraging your current skills. There are many professions that offer the ability to work from home. Even if your employer will not allow you to work from home during the regular workday, you can offer to complete additional projects or work on a contract basis after hours.

In addition to asking your current employer for additional paid work, you can also branch out and find freelance work. Writing, graphic design, composing, tutoring and more can all be done online. When you are first starting out, let everyone that you come into contact with know that you are seeking freelance jobs. You can talk to your neighbors, post on your Facebook account and send an e-mail out to all of your contacts.

One word of caution--be sure that contract or freelance work is not prohibited by your current job's contract. You should also steer clear of any projects that could be considered a conflict of interest.

Forex Trading

Online trading has greatly increased in popularity over the last 10 years. Trading is no longer just for those with college degrees in finance or financial professionals. With the right information, anyone can become a successful trader.

Forex trading is not just popular in the United States. Since Forex trades world currencies against each other, traders are participating from all around the globe. Currently, the Arabic market is strong, so more Arabic traders are discovering the benefits of Forex trading.

Becoming a successful trader does not have to be difficult, but you also do not want to just jump in and start trading. Making trades before you understand how the market works can result in losing money instead of making it.

The first step to starting Forex trading is finding the right broker. There are hundreds of brokers online that offer Forex trading platforms, but you need to find the one that will meet your needs.

There are many different factors to consider when choosing a broker. You should take into account the broker's quality ratings, certifications and associations and tools for traders. Some of the most popular, high quality brokers include:NetoTrade, Oanda, CitiFX Pro and FXCM.

Once you open your account, take some time to study the basics of trading, and start with small trades before working up to larger ones.