Introduction to Investments and Investing (Update)

Introduction to Investments and Investing (Update)Creating value and wealth for your family through prudent investment practices.

Introduction to Investments and Investing (Update) – Investment means many thing to many people. Warren Buffet has a decidedly different view on what an investment is compared to what you and I might think.

However the only true difference is the scale since both Warren Buffet and ourselves have the same basic objective which is to take what money we have (or what we can borrow in terms of property investments for example… a mortgage) and to make it grow.

Not only must the successful investor make money grow but the rate of investment growth must at least outstrip inflation.

If this condition is not met then an investment deteriorates over time rather than grows in real terms.

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Inflation is basically an indication of what it will cost at some future time to have the same spending power as of today.

The higher the level of inflation the more quickly is value eroded and the poorer you will become.

This is a certainty of investment life as much as it might seem difficult to understand why a million dollar today is really only worth say $50,000 in 20 years time.

In compari9ng value it’s vital to consider inflation and its mighty erosive power.

Real investment returns are measured after inflation.

As a very simple example if your investment has an annual return of 15% and inflation is 10% then your real return is 15-10 = 5%

The quickest way to start investing free cash:.. nearly everybody has a car.

A car should be insured to prevent catastrophic loss and to make sure that you are covered in the event of injury.

However car insurance can be excessively high and by accepting a higher risk then cash can be saved every month.

It then makes sense to save this money and let it grow in a positive way… this means over time the savings can be substantial and the investment proceeds very handsome.

It pays to shop around for the best car insurance quotes.

An Introduction to Investing Wisely

The contents of this site is primarily aimed at the person who has a serious desire to invest in the future in such a way assets and wealth are accumulated and the financial security of the family is maintained and improved upon.

The site is not designed to tackle intricate investment strategies nor is it aimed at those whose desire is to get rich quick, for the simple reason it is virtually impossible for most us to get rich quick no matter what many investment schemes suggest.

The picture shown here epitomises what many of us see as the result of wise and prudent investment… eventually a life which can be enjoyed doing things differently.

For most people the biggest investments they will ever make include the following…

  • Property… more specifically the home
  • Life & endowment Insurance policies
  • Retirement and pension schemes

The Importance of Property Investment for Ordinary People Like You and Me

For the above reasons much of this site will be geared to the subject of investing in property since unlike other relatively safe long term investments we can control how well or how badly we invest .

We will not confine the investment discussion to the home only but using property investment in a much broader way to create wealth.

Investing in property is probably the safest way of creating long term wealth in significant amounts because such investments are able to be geared and the actual cash investment is secured to a large extent by the physical asset… the property itself.

This does not mean to say property investment is foolproof because it isn’t and this bring us to the concept of risk in any investment…

Investment risk shows itself in the typical return on investment offered by different investment types.

For example a cash deposit in a bank attracts low interest rates because it is risk free, almost.

On the other hand any scheme offering returns considerably higher than inflation must by definition carry higher levels of risk.

The share market is a good example… returns can be spectacular but every so often the market drops with equally spectacular losses being incurred by investors.

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In discussing property investment and so long as a long term view is taken and the basics of property investment are adhered to then then this is probably the least risky high return investment opportunity that is within reach of the ordinary person in the street.

Investing wisely in property and with knowledge will not only provide better than average returns it can be provide the basis for a second career and an almost guarantee of a secure future.

The message clearly then is … Learn as much as you can about property investment and do this before taking the plunge!.

Rely upon expert advice to make the right decisions but put yourself into a situation that no real estate agent or 3rd party property developer can pull the wool over your eyes.

Successful property investment is all about digging into the market for detail before making the investment.

Successful property investment is not about opening the Star’s property section, eyeing an inviting property, visiting the showhouse on Sunday and being persuaded by the estate agent that what you’re seeing is a great property investment.

It is rarely possible to rely upon an estate agent to provide impartial objective investment advice.

You need to do your own homework, ask the right questions, discover information about the property, the area, the finance arrangements, plans for future developments and many other factors.

Armed with such research, thoroughly carried out by yourself (when you know how and where to go to get good information), you will achieve the following:

  • A lower cost investment
  • A much higher chance of high growth
  • A more secure or less risky investment.
  • A real way to generate significant wealth over the long term.