Investment Strategies to Live By
A excellent way to earn a passive income is through investing. Investments can pay off with interest, dividends, and capital gains. Depending on the current tax laws you may be subjected to lower taxes than other forms of income due to governments wanting to encourage more economic growth. Here are some general guidelines to assess an investment opportunity.
What Are The Facts?
Look at the current state of the business taking into consideration of all the industry conditions. Cash, debt, technology, and intellectual property are all factors that can help you evaluate the potential investment benefits and risks
How Has It Performed?
While past performance can't predict the future accurately it is a fine indicator of where things are headed. Compare past company habits to the current and see how consistent the company has been. By following this you can get a clear view of future gains and losses.
Risk!
How risky would the investment be? Does the investment seem fairly stable, or has it been a roller coaster ride.
What's The Return Rate?
Do you know the return rate of the investment or have an idea of it. Will you have a reasonable payoff even if some processes of the venture become shaky. Potential rate return rate is why we invest in the first place so always keep this mind.
What's Your Piece of the Pie?
How much control do you have over this investment? Buying common stock you have a small degree of influence as a stock holder. On the Board of Directors, though, you have much more influence and can exert thereof. As CEO you can exert even more influence, but this can be a mixed blessing. By being CEO you bear more responsibility if things go south.
Impact!
Are you investing to make as much money as possible, or are you responsibly contributing through your investments? Will you invest in weapons, junk food, soda, drugs, oil drilling, entertainment, or gambling? If you decided to put money in a S&P 500 index fund, your supporting all of these things and more. Make sure you know where your money is going.
Make sure try to invest in a company,venue, or place whose values align with yours. Doing so can help keep you from sabotaging yourself since you believe in what your investing. Some of my favorite places to invest are in personal growth for myself and others. Long-term investing is passive while (hopefully) watching your investment increase in value with little maintenance on your part. So if your checking on a stock price every day that isn't necessarily passive. So make sure you can appreciate what your investment over time because there's no need to settle for harmful investments that violate your values and leave you feeling conflicted and incongruent.
What Are The Facts?
Look at the current state of the business taking into consideration of all the industry conditions. Cash, debt, technology, and intellectual property are all factors that can help you evaluate the potential investment benefits and risks
How Has It Performed?
While past performance can't predict the future accurately it is a fine indicator of where things are headed. Compare past company habits to the current and see how consistent the company has been. By following this you can get a clear view of future gains and losses.
Risk!
How risky would the investment be? Does the investment seem fairly stable, or has it been a roller coaster ride.
What's The Return Rate?
Do you know the return rate of the investment or have an idea of it. Will you have a reasonable payoff even if some processes of the venture become shaky. Potential rate return rate is why we invest in the first place so always keep this mind.
What's Your Piece of the Pie?
How much control do you have over this investment? Buying common stock you have a small degree of influence as a stock holder. On the Board of Directors, though, you have much more influence and can exert thereof. As CEO you can exert even more influence, but this can be a mixed blessing. By being CEO you bear more responsibility if things go south.
Impact!
Are you investing to make as much money as possible, or are you responsibly contributing through your investments? Will you invest in weapons, junk food, soda, drugs, oil drilling, entertainment, or gambling? If you decided to put money in a S&P 500 index fund, your supporting all of these things and more. Make sure you know where your money is going.
Make sure try to invest in a company,venue, or place whose values align with yours. Doing so can help keep you from sabotaging yourself since you believe in what your investing. Some of my favorite places to invest are in personal growth for myself and others. Long-term investing is passive while (hopefully) watching your investment increase in value with little maintenance on your part. So if your checking on a stock price every day that isn't necessarily passive. So make sure you can appreciate what your investment over time because there's no need to settle for harmful investments that violate your values and leave you feeling conflicted and incongruent.
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