ARTICLES > Investing - Part three.
 |
0800 50 44 44
|
|
|
"I've Got Spare Cash, What Should I Do?" This is the third of a four part article on investing. Parts one and two are from the July 2011 FORTIfi Client Newsletter. Parts three and four are from the August 2011 FORTIfi Client Newsletter.FORTIfi is not an investment company. However, if you have money you think you’d like to invest, here are a few things you need to remember; ► First, before investing any money anywhere, make sure you understand the type of investment you are making. The tendency may be to rush in because of the interest you feel you may be losing on a daily basis but there is much more at stake than that. The wrong type of investment can cost you your savings. ► Second, remember the old saying, “If it sounds too good to be true, it probably is.” You will come across investments that promise to be totally safe and yield returns that are out of this world. Beware! In general terms, the higher the return, the greater the risk. Promises of a massive return means, at best, the risk is outrageously high, at worst it is a scam. ► Third, if you are unsure what to do with your money and have neither the time nor the inclination to investigate the various investment strategies, go to an investment company and allow them to manage your funds for you. Or, for an easy low risk investment, simply divert your money to a superannuation scheme (if you are not needing it in the short-term). ► Fourth, despite claims to the contrary, no one can accurately predict what the profit on non-fixed investments will be. World financial markets can change in a very short space of time and the flow down affects can be almost instantaneous. This is why your answer to the question of, what level of risk you are prepared to take with your money, is a vital one. ► Finally, remember that different investment types will attract different fees. Be careful to acquaint yourself with the fee structure of any investment and include those in your calculation of profit or loss. Click here for Part One of FORTIfi's series on Investing. Click here for Part Two of FORTIfi's series on Investing. Click here for Part Four of FORTIfi's series on Investing. |