In order for a successful investment in New Zealand you should follow some important rules that will guide you in making good investment decisions. Some of the common rules that you as an investor should follow are:
Set Your Goals
Before investing or deciding to invest you should set your goals. Goal setting will help you decide what you are trying to achieve and where can the investments lead you in the future, and the final outcome of your investments and the time frame of the investment. If you are in debt than you should think if investment is the right option for you at this point of time or you should wait and first clear off all your debts.
In order to invest you should know what sort of investor you are- like how much money you are willing to lose and how much volatility you can tolerate. In order to decide on all this you should make your investment profile.Make sure you calculate all your risk before getting into investing as if not done right you can lose everything.
Decide on how you want to invest your money
looking at risk decides on the type of investment that will suit you best. After deciding the type of investment that is best for you, you can invest directly (bank savings) or use managed funds. You can talk to an authorized financial adviser for more information
Do your homework
Do enough research, compare and contrast everything related to investment. Know all about investment. You can also get someone to do these works for you. For more information you can read the business sections in the newspapers, go online and research on different investments relating to the investment you are considering and the different investment companies, talk to your adviser, bank manager, or accountant.
Do enough research on different investment companies and the investment options you have: before you invest in any company research on different investment options they have and decide if those companies suit your profile and if they offer the types of investment that you are looking for. Find out the rates of returns and the levels of risks that are associated with the returns.
Research about the investment company that you choose– find out what the company does, what markets is the company in, who is running the company, and how it is run and its performance in the previous years. Also find out if the company has ever been declared bankrupt and any other information that you find important and relevant for your investment.
Shop around- for the right advice about investment- look around for a good financial adviser for good investment advices that will be beneficial for you. The financial adviser must tell you how they are paid and the impact that can have on the advice they give.
Spread your risk
As a saying never put all the eggs in one basket, use the same principal for investing. You should balance your investments by investing in different investments. For example, you can invest in a high risk investment and at the same time invest in low risk investment to balance off your risk of losing out part or whole of your money.
Property Investment Advice
Property Investment can be complicated and getting the right advice on whats involved is crucial. We have put together information that will explain whats involved in property investment and how to get the best returns.Check out Property Investment Advice
Who can help with Investments ?
No matter what type of investment you are looking to go for, there is always a risk. To minimize the risk and to get professional advice it always good to know people in the industry. There are many people that make a living out of helping investors and are very good at what they do. At invest.org.co.nz we have sourced out some of the best professions that you need to have in your side when dealing with any kind of investment. You can check them out at professionals who can help with investment
Investment is one of the best ways to generate income in NZ, but at times it can be risky if you are not careful enough about where you are investing your money and on what types of investments. Risks can be avoided to some extend if you make your investing profile and follow some important rules that will guide you with investments.
Durations – means the period of time you want to invest for- either for a short term (1-3 years), medium term (3-10 years) or long term (over 10years). Many investors choose different investments of different durations depending on their need of the investment returns (long term or short term needs).
Returns – decide whether you want an income or growth. If you want to use the money your investment earns as income to live off during the duration of the investment than you should invest in an investment that will guarantee how much money it will earn; like for example a bank deposit whereby you will be paid a fixed amount of interest for a set period.
If you want to reinvest the investment earnings with the original lump sum and allow your money to grow (known as growth) as much as possible than you should consider investments that do not guarantee the return from year to year, such as shares.
Liquidity – you have to decide if you want to be able to get your money easily before the end of your investment period. High liquidity investments (e.g. bank savings account) are investments where you can get your investment returns anytime. Low liquidity investments (e.g. property investment) are investments where your investments may take time- to find a buyer and complete the sales process