Investing Wisely

When we sees the word, “Investment”, we typically believe that this is for the wealthy only. The Bible also talks about being faithful with what the Lord has entrusted to us and currently being accountable to Him for the decisions we make (Matthew 25:14 – 30). We want to secure our finances and do our homework just before producing any selections in investing our income in the numerous investment instruments. Listed beneath are some of the investments you may consider.

a) Stocks & Shares: When you get a stock from the Stock Exchange, you are indirectly investing in the stock of the company. But when you buy a Mutual Fund/Unit trust, you are entrusting a person else to make choices for you and you do not have any control above what to purchase or promote.

Most common stocks returns come in the form of dividends and capital appreciation (improve in the share value) but not all of the stocks are the very same. A single way is to see how well the company’s prospective customers is tired to the economic system.

Exchange Traded Funds is like a Mutual fund/unit trust but differs from it. It is traded in a stock exchange and tracks an index (illustration,S&P 500 Index, Nikkei Index) instead than trying to beat it actively. By owing an Exchange Traded Fund, you get the diversification of an index as properly as the versatility of trading it like a stock. This implies you can buy or sell the stock at any time.

b) Actual Estate: The concept of owing another home as an investment is a dream in most of our minds, particularly in affluent Singapore. You can obtain a house and lease it out as a tenant. As a landlord, you are responsible for spending the home loan, taxes and the expenses of keeping the residence. Hopefully, the rent paid to you can cover your regular monthly expenses on the home. Hopefully, you can promote the property when the price goes up. Nevertheless, you could want to manage some unpleasant experiences like the tenant calling you in the middle of the night simply because of an electric blackout in the apartment.

c) Land Banking: The idea of Land banking is fairly new in Singapore and there have getting a number of unpleasant scams in the past. Land banking is the buy of raw land with the intention of holding it right up until it is lucrative to sell it. The boost in the land worth comes from the conversion of the raw land to residential or commercial use.

Investing in land banking is investing in a tangible asset as opposed to stocks or bonds but there are also risks involved. The investment could flip out to be a scam or the plans to build the land in the foreign nation did not materialized. What if you need to have the income urgently? We require to be cautious and do our homework ahead of we invest. Amid the more reliable land banking firm is Walton International

d) Gold & Silver: Gold has been around for a lengthy time and has been recognized as a safe haven in occasions of inexpensive instability. It is an excellent hedge towards inflation over the extended phrase. Prior to 1971,the US Dollar was pegged to the Gold standard at a fixed price (illustration USD35 = 1 oz of Gold). Nevertheless, on 15th Aug 1971, President Nixon ended this system. Because then, gold has effectively preserved wealth compared to paper income as the value of the dollar is continuously eroded by inflation.

Silver, the very poor man’s gold is an additional fantastic device to hedge inflation. The cost of silver ranged from $3 to $6 per oz in the 1970s & but the price tag started increasing speedily in 1979 to $50. Silver has much more usage than gold and is employed in industrial goods like batteries and electronic goods. Nevertheless, the stockpiles of gold are expanding but the silver stockpiles have shrank drastically. Physical silver can be bought as a 1 kg silver bar, silver coins at most valuable metal shops.

Francis Pang

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