Hardest Part About Investing

Hardest Part About Investing-Getting yourself to the starting line

Stare at this... ********** .... as I attempt to read your mind

OK, this is what you are thinking.

"I need more money in my life".

Good, aren't I?

Maybe you need money to pay off your loans and bills. Maybe you want to start a family and provide for your children. Hell! Maybe you just want to take an expensive vacation for ONCE IN YOUR LIFE and pamper yourself.

I know that I DO.

By investing wisely now, all of us can generate enough cash to deal with all of the above, and more. but before you do that, ask yourself these important questions.

• How much do you really need?
• How much risk can you take?
• How long are you willing to wait before you see profits?

How much do you really need?

Determine your financial goals. This is important or else you will be constantly worrying about 'needing more' money

How much risk can you take?

Different unit trusts have different levels of risk. Long story short:

1. High risk = high returns: advisable if your time horizon is long.
2. Low risk = low returns: advisable if your time horizon is short (that is to say' less then 8 years)

Of course, typically, it is the more volatile 'growth' unit trusts that generate the higher returns. So the more risk you are willing to take, the better your returns can be.

What the hell is a time horizon? That is, how long you are willing to wait before you see profits

How long are you willing to wait before you see profits?

Again' long story short;

1. longer the time horizon = afford to take more risks = higher the profits
2. shorter time horizon = invest in less risky funds = lower your profit

As markets are unpredictable, prices may fall and if you do not have the luxury of time, chances are, you will have to sell at a loss.

TIME IS YOUR BIGGEST ALLY in generating cash for unit trusts.