Best investments for your secure future

In order to invest wisely, you need to have a suitable investment plan that will ensure the appropriate amount of growth for you. Your investments will also need to be safe and easy to manage.

Investing may seem daunting for a lot of people. Maybe you have tried it once and failed, or maybe you are simply frightened of losing your money. Always ensure that you or your financial advisor draws up an appropriate investment strategy for you that incorporate your risk profile, timeframes and financial goals. As foolish as it seems, many people plunge headfirst into investing without thoroughly working through these fundamental issues. Avoid high-risk investments. These include risky business ventures, highly speculative stock, tax avoidance schemes or too-good-to-be-true propositions that promise unusually high returns. Avoid borrowing for your investments. Although some financial advisors advocate "gearing your investments", this can be fraught with danger. Stay with the traditional and known. As described in this chapter, the best and surest investments are fixed interest, property and shares. Work out the optimum mix for your investment profile, have a safe plan to work with and you can't go wrong. Low risk investments are predominately cash, fixed interest and superannuation. This has the lowest risk of all investments but has also the lowest return - in today's market, approximately 3% to 6% per annum. Fixed interest includes cash, cash management trusts and bonds. They return approximately 5% to 10% per annum, sometimes as high as 15% if you invest in global bonds in good markets. High risk investments include all speculative shares, futures and any other type of investment that is purely speculative by nature. Because with these types of investments we are betting on whether the price will go up, or sometimes down.

Buying a real estate is like looking for a long-term commitment with someone. It is a good investments for you. It needs to qualify with your perspective and desires. If you are considering investment real estate, then you should identify the desired location, price, and target market. Because these are important factors you need to consider before initiating the investment. Stock market investing is one of the fundamentals of value investing. It is the best investment also for your secure future. By diversifying investments into the stock market it is possible to spread out investment funds into a wide variety of different companies and their stocks. It is certainly very difficult to choose specific stocks that are going to go up in value immensely in the years to come. The Wal-Mart like stocks is few and far between and taking them at their outset is almost impossible. This certainly does not mean that you should not try. Buying fundamentally sound stock market investments can be a goal and ticket to a fruitful financial future ahead.