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| Millionaires Club |
Choosing the right mutual funds, bonds or stocks is an
uphill task not just for the beginners; sometimes even beats expert investors.
Not doing it correctly can have a negative impact on the chances of building
wealth and live life happily after your retirement.
Rather
than cherry-picking stocks, you should review what combination of mutual fund,
stock and bonds you would like to hold. This is called asset allocation. Some
important aspects of asset allocation are discussed below.
Risk vs Returns
The entire concept of asset allocation revolves around the
risk-return trade-off. Simply picking up assets with greater potential with the
view to get good returns on your investment is not the answer. The recession in
the period spanning 2007-2009 is a case in hand. There are many examples like
this in the past as well.
It is important that you acknowledge the fact that every
year some other investor will beat you with their returns. While it is good to
be a return-hungry investor, being a greedy investor can be counter-productive.
Your capacity to determine the differences between the two essential elements
of investment – risk and return – will play a part in determining whether you
belong to the former category or the latter one.
Financial Planner
Sheets or Software
Survey sheets or financial planner software issued by firms can
come in handy to make important financial decisions. However, at the same time,
you should also remember that you are on your own in the stock market, and it
is your decision that counts in the end. Thus, it is not a good idea to solely
rely on them.
Experts subtract the age of an investor from 100 to get a
rough calculation of the percentage of money one should invest in a stock. For
example, if you are 30 years old, going by this rule, you should invest
(100-30) = 70% of your money in stock.
As far as the standard worksheets are concerned, they might
not feature; certain important information like whether you are a retiree,
spouse or a parent, your financial goals and so on. Thus, you should draw
useful information from survey sheet and financial software but make your own
decisions.
Clarity of Goals
With clear goals in mind, you will be able to make informed
decisions with ease. It is generally accepted that when one is able to keep a
clear head, it becomes relatively easy to reach a decision even in the face of
difficulties. In order to get a clear idea of what is better for you, it is
important that you identify whether you have a long-term goal or a short-term
goal.
If you aspire to own a home after your retirement in 20
years, short-term setbacks should not worry you but if you need money to pay
for the education of your child in 2-5 years, you should consider allocating
your assets to safer investments.
Want to learn about
trade options like a pro?
While you can gather a lot of information regarding trade
and investment on the internet, you can never be sure about its authenticity.
Whether you are looking for reliable guidance about minimizing your risks or
maximising your exposure, there is no substitute for getting it from a trading
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pick of the bunch.
Over the years, the millionaires club, founded by Mr Porschay Persh, has been instrumental in guiding both
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guidance and techniques.
Mr Persh is popular in the world of trade and investment as a
rainmaker. He seeks to guide investors with his vast experience to get the
value of their money by investing their assets in the right way. With the view
to keep investors up to date with the latest information, he uses modern
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