Investing is not just a fastest way for the wealth generation but is also a smart way of making the money work for you. Though many persons advice us to invest, but the reality is that not many are aware of the requisite knowledge or have required skills for making sound decisions on the investment.
Working closely with the experts in this field is the safest and fastest way to gain knowledge but main problem here is that "someone else" is managing your dollars. You have to be careful in all this. You should realize that the money to be invested is yours and thus investing is also your responsibility. It is a fact that nobody can look after your money in a way you yourself can.
When we discuss investing we can quite often get influenced by the estimated earnings or the prospective growth. We also get carried away when we see our stocks or funds performing well.
You should pay specific attention of two aspects as they can turn out to be death traps for any smart investment.
1. Fees
I've been insisting on you to start making investment yourself without seeking any help from the financial advisors because of the large fees which is involved.
These financial advisor or fund managers are all here in this business to make money and these guys don't make money by investing their own money but instead earn the money by charging the fees for investing your money. Now this fee can sometimes take a large chunk of your margins as there are fees for each aspect of the investment.
You should make sure as to what you will be charged for and when to minimize your expenses as much as you can.
2. Taxes
It is a fact that taxes make a large part of your investment strategy and in several ways these expenses should be paid particular attention.
You revenue service charges a capital gains tax (tax on the profit made by you on your investment). It greatly varies from a nation to nation. If you are from European country and are trading in the United States, then you will have to check this minutely as you may have to pay lot of taxes.
Working closely with the experts in this field is the safest and fastest way to gain knowledge but main problem here is that "someone else" is managing your dollars. You have to be careful in all this. You should realize that the money to be invested is yours and thus investing is also your responsibility. It is a fact that nobody can look after your money in a way you yourself can.
When we discuss investing we can quite often get influenced by the estimated earnings or the prospective growth. We also get carried away when we see our stocks or funds performing well.
You should pay specific attention of two aspects as they can turn out to be death traps for any smart investment.
1. Fees
I've been insisting on you to start making investment yourself without seeking any help from the financial advisors because of the large fees which is involved.
These financial advisor or fund managers are all here in this business to make money and these guys don't make money by investing their own money but instead earn the money by charging the fees for investing your money. Now this fee can sometimes take a large chunk of your margins as there are fees for each aspect of the investment.
You should make sure as to what you will be charged for and when to minimize your expenses as much as you can.
2. Taxes
It is a fact that taxes make a large part of your investment strategy and in several ways these expenses should be paid particular attention.
You revenue service charges a capital gains tax (tax on the profit made by you on your investment). It greatly varies from a nation to nation. If you are from European country and are trading in the United States, then you will have to check this minutely as you may have to pay lot of taxes.
No comments:
Post a Comment