One of the biggest mistakes investors make is not answering basic questions. What about your investment benefits? How does lifestyle and investment horizon? At what stage of the cycle is the economy located? What matters, Marek Brvnk, macroeconomic analyst at Golden Gate.
We don’t want to keep the two of us any good, we should be clear about whether our goal is to save or invest. A misunderstanding of the difference between these terms often leads to a rift over the end result. You when the spoen did not pay off, or when the investment only dr value.
I agree that it can be confusing when we have a product that combines the features of investment and savings and the like. The essential bag is always what the result is.
Spoit or invest?
When connecting and investing in the long run, we will gradually delay the city’s current consumption for future use (we will not spend the funds, but we will break them down on the track later). The expected result should be different in terms of savings and investment. For spoen, we assume that we will consume the accumulated flow later and flow. The investment bag has something in it, namely the income. that is, in the end there will be you, it is not a simple set of resources.
Income is therefore one of the main features of investment, not savings. There is always a risk associated with entry. In general, the higher the yield, the lower the risk. We must therefore also consider the possibility that the soul can be removed. This should not be the case under normal conditions for disputes.
So if we intend to make more than anything we do with our property, we simply invest. So if he mentions a promise of input (would often be guaranteed), it is an investment. And with it is always associated with the possibility of loss. This is the reason for pension savings in recent years.
Balance and risk margin
Our investment balance sheet should always take into account what we really owe. If our situation is in some way kehk, we have a mortgage, we should have our financial portfolio in stock without this risk. As well as if we are just before retirement and we will not have time to spend money again in case of loss of funds.
The investment balance sheet therefore always relates to the current state of the specific investor. Do I want to go back? I want to issue? Invest him in everything, or just what I can drink about in case of failure? How long do I want to lock the funds in the investment?
These are all questions we should ask at the arrest. What’s more, regularly review the answers to n. Investovn is the essence of the word never ending. It is therefore necessary to monitor the current status of the portfolio. Ideally twice a year, but more likely not per quarter I do not recommend.
How is the economy in shape?
a number of factors indicate that we are at the top (mon u after the top) of the economic cycle. At this time, we should exchange risky assets in the portfolio, such as stocks or some types of bonds, for investments that grow in the event of a slowdown in the economy. Capturing the bag right at the moment requires either knowledge of the system or a quality partner who will be able to manage the property.
An experienced investment partner does so at all times (ie not only in the period of economic growth) there are investments that can be. Therefore, I usually have a long-term strategy based on knowledge of economic cycles and your transfer of investment where the first complexity will be evaluated.
Investing is a very pleasant way to actively or passively manage assets with a view to future prosperity. All you need is to choose carefully and rationally the way that will suit you in the long run. So I remember. Or we invest. Neither variant is better and mountains. You just know what long and for.