Saturday, December 29, 2012

Investing For Beginners To Make The Money Grow

By Corinne Hyde


There are many reasons why people will need to invest in financial vehicles to have their money grow Jamaica. Recent pyramiding scams and the millions of dollars that it has managed to pull away from its victims suggests people still do not know about the basic principles in investing. This is the secret to accumulating wealth and has been the tried and tested formula.

The safest options available are those that are being offered by the bank. However, these offer lesser yields. For example, bank deposits only gain at least one percent of the whole amount annually. This is almost virtually nothing considering that inflation is at five to seven percent annually. Time deposits usually earn at three percent annually.

Compounding interest can work for the investments in several ways. In a way, it is like lending money to the investments who may also be called the debtors in this case. This is when the investments offer the investment interest rates in which the money grows annually. For example, a hundred dollars that grows at a rate of five percent a year may eventually reach more than three hundred dollars by the twenty fifth year.

The beauty of investing is that there are choices for the investor. The basic ones guarantee earnings in short time. These are called the short term savers which lets the investor take profits in just three years. A common example of such vehicles are the time deposits that give the money a fixed interest rates on the period which is set.

Long term investments are those investments which the owner holds on for more than seven years. This is where other vehicles like life insurance and mutual funds come in. These are better preferred than short term vehicles since it has the ability to make the money grow by up to fifteen to twenty percent a year. This will allow the investors to have their money secured in the long rum.

Stocks is one of the most effective investments vehicles that guarantees decent returns when investors choose the right stocks. The best way to avoid the effects when the economy is down is to keep the shares for longer period of time. This technique has been used by Warren Buffet who is now one of the richest men in the world.

The long term investment opportunities that people might want to have are the bonds. These also come in various forms. It has a fixed interest rate when the bond is sold to the investor. Maturity rate can range from ten years to twenty five years. Mutual funds are the best way to invest stocks in the market without literally doing it. This is managed by the fund manager of the financial institutions.

Another way to double the money is to speculate. Most companies that offer brokerage services online and offline give their clients an amount of data which will determine where the stock picks are headed to. Many people may begin to do these things in the end.

Most of the people will need to get the things done in the end. There are a lot of opportunities to grow Jamaica. People should be careful in selecting these things in the future.




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