A Dedicated Guide on Investing

A Dedicated Guide on Investing

While most people are often struggling to make both ends meet or are forced to work almost 8-9 hours or more each day to get money. Some do precisely the opposite.

Apparently, these people seemed to hack the system and garnered the ability to gain money without working— they make money work for themselves, instead. There are some guides from them:

1.Confirm investment goals

How long will you spend your money on? If you need it in the short term, we recommend low-risk financial management, such as capital preservation funds and regular savings. If this money does not need to be used for five to ten years or more, it can be appropriately invested in higher-risk financial management. Of course, this requires a very good investment target.

2.Understand your risk appetite

Asset allocation based on investment style and personal risk appetite. The simpler method is: 100 minus your age. For example, if you are twenty years old, then you may put 20% in the debt category and then 80% in the equity category. This is the easiest way. Of course, you can also perform a risk matrix test to get more accurate recommendations.

3.Investing in different asset classes

Stocks, bonds, funds, emerging market stocks, insurance, P2P, real estate, commodities. This is a widely recognized configuration tool that has a low or even negative correlation with each other and can effectively spread risk. We recommend choosing at least four or more low-relevance configuration tools to reduce statistically significant volatility without losing potential gains.

4.Dynamic balance

Do a dynamic balance at the end of each year. If you buy assets in four equal parts and buy four indexes, you must sell the large increase, and use the money sold to buy the low increase.

5.Style adjustment

After five to ten years, your personal investment style may change significantly.
If you have done a risk test, you will find that there are actually many problems with objective factors. For example, are you single or married? Should it be in installments or in full? It all affects your investment style. So you need to make some adjustments accordingly.

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Michael Aniston

Michael started with a master's degree in finance before he went into technology and coding. He is now a freelance journalist and video producer living in Berlin, Germany. When he doesn't write, he will travel many countries.