subject: Money To Invest In The Perfect No Risk Investment [print this page] It may be discouraging to the investment world if you can say something about this would be that there is a huge selection. Most of these options are pre-packaged solutions, the marketing departments of financial institutions has determined is what the market wants.
They are the entry costs for all investments and this is often difficult to erode returns, that if a return is achieved. The goal of any investor to invest their capital each year at the highest possible connectionCompounder. The reason is simply that the interest on interest is growing exponentially money. The higher the compounder, distorts the more mathematically, that is the return.
The other goal, has a professional investor, the risk is reduced. This may seem like a very vague for many people. To reduce risks? What is the risk? How do I reduce it?
To know something for all investors, this is a fundamental truth. To invest, you need some money. The funds have to rely on your account.You give the money to another and it will always bear the risk. The only exception to this rule is the modest bank deposits. A Bank is organizing a special kind of entity, which is guaranteed by the government. This type of investment is very safe, but it is also very poor performance. 6% per year is nothing to get excited about.
But we think the time for a second. If we have two objectives, reducing our money as much as possible each year and compounded the risk. The secondAim at reducing risk, must be clarified. If you receive a percentage of investment money and give it to someone else, without insurance, what do you have for your money to tangible intrinsic value, then money and the risk venture outside of your control.
I hope this makes sense. If you are a letter from the recognition that you so and so dollars from 5000 was, what did you get for your $ 5000? Only one letter, you say what you already know. That you invest your money with them. There isno tangible intrinsic value in that letter, if it has extensive gold leaf all over the letter to the value of $ 5000
Your money is your hands and left in the hands of another. They exchanged a great value for nothing, and therefore abandoned any control over these resources. The ideal risk neutralization is something of value in return for your money. Then you still have your capital in the form of a different value.
Lets look at how this can beperformed. For example, if you had a very small seed money account, you only had $ 100 to get your investment going. Ok well what you can buy to sell again at $ 100? A mountain bike? A TV or a CD system? The point of investing is to win. Thats all How you get that return is completely up to you. If you $ 100 spent on a TV this week that you consider before buying that it was actually worth $ 180 and you sold that TV in a week, can say, will get $ 140 to to fastSale. They had gone back by 40% within a week. A surprising level of compounding, if you think it's every week. (which would be easy)
The point of the above example illustrates what I mean about the reduction of risks. If you have an investment property with an intrinsic value, than what you paid for it you will find in real money, you have eliminated entirely risk. The money was left of your account, but you have a concrete and tangible good that you changed the investment capitalfor. This is the perfect investment.
