Financial Methods » Investment http://www.financial-methods.com about financial methods and financial tips Wed, 24 Feb 2010 01:37:25 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 Choosing the Right Insurance Policy http://www.financial-methods.com/choosing-the-right-insurance-policy.html http://www.financial-methods.com/choosing-the-right-insurance-policy.html#comments Fri, 15 Jan 2010 15:41:21 +0000 Admin http://www.financial-methods.com/?p=54 First, Term Insurance. This product allows you to receive protection for a certain period. In practical terms, the benefits of protection will only be paid to you or your family if you die or suffer permanent disability during the coverage period.

Term Insurance does not provide cash value at the end of the contract. This policy will not generate a cash value for you if your policy is canceled in the middle of the road. However, the amount of premium you pay for Term Insurance classified cheaper than other types of insurance policies.

Second, Whole Life Insurance. Programs of this type of life insurance provide protection for life, as long as you continue to pay premiums. In practical terms, the family as the beneficiary will receive payment of sum assured benefits, including bonuses if any, when you died or suffered permanent disability.

Third, Endowment Insurance. This program is a combination of protection and the savings over the period of insurance policy enforcement. In practical terms, the benefit sum assured, and bonus if any, will be paid to you at the end of the contract. Or, you and your family can get when you die or suffer permanent disability.

What happens if you stay healthy at the time of the policy matures? You will receive financial compensation from the insurance benefits. Endowment Insurance can be useful for you to save a variety of needs, such as saving for children’s education or your retirement savings.

Fourth, Unit Linked Insurance. In Life Insurance Program which is associated with investments (Unit Link), the insurance premium you pay will be used to provide protection, and at the same time the fund will be invested in a number of investment units of your choice. You can choose the investment funds so that you can control your budget better. Consequently, your profit depends on the choices of your investment funds.

Essentially, all types of life insurance program is equally rewarding for your protection. The extent to which you see the urgency to get one of these programs, it all depends on the priority needs that you face today and plan for the future fulfillment.

You should choose the appropriate insurance product with the type of your protection needs. For example, you need protection against the risk of financial needs due to various risks, including death, hospitalization, or permanent disability. At the same time, your tolerance level for risk, your goal in saving and investing, as well as the investment horizon also determine the period of insurance program that works for you.

Concretely, to determine the choice of life insurance products that match your needs, you should consult with insurance agents. They will serve you and provide the best solution for you.

]]> http://www.financial-methods.com/choosing-the-right-insurance-policy.html/feed 0 Is Enough Saving Without Investing? http://www.financial-methods.com/is-enough-saving-without-investing.html http://www.financial-methods.com/is-enough-saving-without-investing.html#comments Sun, 27 Dec 2009 13:55:33 +0000 Admin http://www.financial-methods.com/?p=51 Whatever your fixed income, first set aside for savings: emergency fund targets ranged 4-12 times from the monthly expenses and monthly savings deposits to achieve this target approximately 5-10% of gross income, insurance: health and accident/soul with a deposit premium monthly approximately 4-8% of gross income, and investment: deposit monthly investments ranging 10% -30% of gross income, and then allocated to the other expenses.

Savings remain important as an account that holds our emergency fund, as protection against self and family members increasingly recognize so that buying insurance is recommended. And finally the investment needed to maintain purchasing power and expand our wealth. Then the next question is, what alternative investments that offer above yields on savings interest rate?

To start your own business takes a special time and energy and no small amount of funds in order to run well. Therefore, mutual funds present as an alternative that is quick and easy to start investing. In addition, it can be started with relatively low amount of funds, and also handled by people who are experts in their fields. Mutual fund is a container for a set of investors to invest in financial instruments with the help of the investment manager.

Financial independence is being dream of every human. Someone said to be financially independent while he was able to achieve financial goals such as: there are savings for emergency fund, protection for the risk, buy a house, a car, children’s education fund, vacation fund, and pension fund.

]]> http://www.financial-methods.com/is-enough-saving-without-investing.html/feed 5 Understanding Your Risk Profile http://www.financial-methods.com/understanding-your-risk-profile.html http://www.financial-methods.com/understanding-your-risk-profile.html#comments Sun, 20 Dec 2009 20:10:23 +0000 Admin http://www.financial-methods.com/?p=48 Learn to choose the right type of investments is urged to do. And on the other side wants to make money work for us are enormous. There are four basic principles that need to be evaluated before investing: the investor age, investment goals, time frame/investment and risk profile. There is no investment that does not contain the risk. Therefore, before investing, first understand your risk profile.

There are three types of risk profiles of investors who are generally known, namely:
1. Conservative Profile is the type of investors who want stability and certainty. This type does not like risk. Generally, the preferred type of investment is a property, insurance products and savings.
2. Moderate Profile is the type of investors who have a higher tolerance of risk than the conservative types in the hope of getting better results that equivalent and balanced. Generally, the preferred type of this investment is mutual funds.
3. Aggressive Profile is the type of investors who have a tolerance for the highest risk. This type likes “high risk, high return” because this wanted the return of the highest possible investment results. Preferred type of this investment is stocks or own business.

So there’s nothing to fear to start investing. You can do well if you understand and check on four basic principles before investing. Thus if there is various types of investments offered so you can confidently answer yes or no because you already know what is suitable for yourself.

]]> http://www.financial-methods.com/understanding-your-risk-profile.html/feed 0 The Investment Tips http://www.financial-methods.com/the-investment-tips.html http://www.financial-methods.com/the-investment-tips.html#comments Tue, 10 Nov 2009 05:17:05 +0000 Admin http://www.financial-methods.com/?p=26 1. Start as early as possible, the time factor plays a very important role in investing. The younger age you invest, the better results will be obtained later.
2. Determine the specific your investment plans objective (education, retirement, buy a house or apartment, buying a vehicle, property renovations, travel, and others) before you start investing. Consult these plans with your financial adviser.
3. Determine the target time period and the funds needed to achieve that goal.
4. Allocate funds to invest consistently, ideally 10% to 30% of monthly income.
5. If you are a beginner, start investing in an indirect way before investing directly. The ideal way is to buy mutual fund products (ranging from Money Market Mutual Funds, Fixed Income, Mixed, up to a higher risk of Fund Shares), then moved to direct investment to marketable securities (bonds and stock), to start a real business or join with suitable business partners.
6. Carefully studied the various aspects and alternative investments, such as the level of risk and yield historically. Do not forget the expectations of experts on economic development and future business combined with your own expectations.
7. If you glance at the financial asset investment, choose the investment firms who have an official Board of Supervisors.
8. “Do not put all your eggs in one basket”. Make your own investment portfolio in accordance with your risk profile.
9. Do not forget, potential benefits must be in line with potential risk. So be careful if there are investments that offer higher benefits without risk.
10. Perform periodic monitoring every year to monitor the performance of your investment. Do not forget to always consult the annual investment strategy with your financial planner.

]]> http://www.financial-methods.com/the-investment-tips.html/feed 0 How to Start Investing http://www.financial-methods.com/how-to-start-investing.html http://www.financial-methods.com/how-to-start-investing.html#comments Sun, 25 Oct 2009 05:29:33 +0000 Admin http://www.financial-methods.com/?p=34 The first reason we need to invest is because we cannot predict the future. Hence we need to anticipate our needs and seek revenue channels to fulfill it. The second reason is because we expect a better life in the future. After the basic needs we met, we expect the tertiary needs are met as well. The third reason is that this life will not be separated from the investment. Investment is a consequence of life. It’s just the expected outcome of the investment can be achieved if we start investing wisely and carefully.

Here are some steps that can be done to start investing wisely and carefully:

1. Set investment objectives
Of course, if married, your investment goals are your family’s investment. This will be shaped by the expectations and values held by your family. Create short and long term targets your family. Think and imagine what the financial implications that may arise due to these targets.
2. Sort spending priorities
After knowing the short and term targets, make a priority of expenses that may be there. Then compare with a regular or extra income that is able to provide these expenses.
3. Provide funds to be invested
Make sure that set aside a portion of revenues to be invested with the intention of increasing the value of the investment funds in the future.
4. Find alternative info of suitable investment risk profile
First, identify risk behaviors. Does your family is more willing to take risks? Alternative stock investment becomes interesting. Does your family is to avoid the risk? Deposits or land is an appropriate alternative. Then have the knowledge that as many of the alternative investments you choose. This knowledge will optimize the investment. Finally, for economic news, social, political always update.
5. Implementation
Thus you begin to sow to reap the results later. By implementing the investment plan, you also add experience that will make you wiser in investing.
6. Evaluation
Evaluation is needed to see whether the investment is going according to plan. Are there things that are not anticipated in the investment? Do not forget, the evaluation!
7. Revision
After running and evaluate, then consider whether to revise the investment target. Revisions will take you to scrutinize again the steps above. Step 1-7 is done continuously in order to optimize the value of investments.

]]> http://www.financial-methods.com/how-to-start-investing.html/feed 0