How much do you know about investments? For many people investments are things they think they will do in the future and have a lot of time to learn about. But as Warren Buffet says “someone is sitting in the shade today because they planted a tree a long time ago.”
Finding a right investment for you is the first step to your long journey of investment. Here are a few tips on choosing your investments.
- Review your needs and goals
It is well worth taking the time to think about what you really want from your investments. Knowing yourself, your needs and goals and your appetite for risk is a good start.
- Consider how long you can invest.
Depending on your needs, you may have different time frames. If you are saving up to buy a house, investments may not be the best option as investments may go up or down. If you are saving for your pension in 25 years time, you can focus on long term investments. Long term investments tend to give you a chance of beating inflation and reaching your pension goals.
One of the basic rules of investments is that to improve your chance of a better return you have to accept more risk. This does not have to be a scary moment for you. You can manage and improve the balance between the risks and the return.
- Become hands on
If you want to be hands-on and enjoy making investment decisions, you might want to consider buying individual shares – but make sure you understand the risks.
Our Hekima policy is a wonderful wealth creation policy which gives you (the policyholder) the dual benefit of protection alongside potentially high returns upon policy maturity.
Read more here: http://www.madison.co.ke/hekima-policy.html