When it comes to choosing the right investment plan for your needs, you will find that the decision is a very tough one. There are several investment plans in the market and it can be challenging for you to get the right one. Very often you may seek advice from friends and relatives but you are often misled as they are not the right people to ask when it comes to making a sound financial decision.
In the USA, Rick Ohlhaber, the President of Vivid Financial Group-one of the top investment and financial planning firms in the Texas, says that choosing the right investment and financial plan for the future indeed is a very challenging task. In the above regard you should always be the sole decision maker as you will be bearing all the risks that are related to the investment and nobody else. He says that it is important for you to plan wisely and unless you have adequate funds kept aside and a secure income, you should never opt for high risk investments at all. This will make you drown in debts.
According to him, the following are some golden rules of investment:
- You must remember that there is no secure and safe investment plan. Every one of them in the market has risks.
- Both risks and returns are directly proportional to one another. Higher risks mean higher returns and lower risk means lower returns however they are more safer.
- You should never invest in any plan without understanding its details. Investing blindly of course is not a prudent choice.
If you keep the above points into mind, you are ready for investment. Now, before investing, you must have a goal or target in mind. The question you should ask yourself is what do you wish to achieve when you are investing in any plan. Rick Ohlhaber says that different people have different goals when it comes to investing their hard earned money and savings. One of the primary goals that most people seek is safety. Here, the risk that is associated with the investment is very low as safety is the basic priority. Some people like to go for a higher range of income. Here, the individual targets a constant flow of regular income through investment after making regular payments. In the above case, they may or may not be a reduction in the original investment that is done.
Some individuals look for growth in long term investments. Here, the associated risks are high too. The individual may get a dividend on the invested amount or he may not. In such plans, he generally takes the appreciation benefits of the investment plan. Last but not the least, most investment plans are based on speculation and some people are ready for that as well. This is of course is the most risky of the lot. The investor may or may not receive a dividend on the amount. Here, maximum chances are that you receive higher returns in a short period of time.