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Business 1,756 views Feb 01, 2017
Invest Your Money wisely: Top 5 Ways

Investing is a key factor that helps you reach your long term goals. There are some factors that determine your success in investing. Your knowledge about investing, the tools that you want to use during investing, your motivation, your time and most importantly, expert guidance, are some of the factors.

If you are new to investing, you need to get the lay of the land first. Before investing, you need to know what stock, investment allocation, bond, ETF and mutual fund are. They are basically different types of investment markets where you can invest. Visit easyMarkets learn centre.

In terms of investing money, there are different approaches that investors usually follow during the process of investment. Top five ways to go about it are described below. It is up to you to choose an option that is perfect for you.

Do it yourself:

If you want to invest money without any expert guidance, you need to execute a lot of things. First you should analyse the market before making a decision according to the right asset allocation. You also need to determine which investments you should buy, and implement the buys and sells. Once you have implemented the buys and sells, you have to monitor the portfolio and manage and rebalance the portfolio according to the prudent repeatable process (make sure that it is tax efficient).

Seek the counsel of an advisor who provides you guidance and recommendations:

If you prefer this option, the advisor will help you by giving you advice in terms of allocation and specific investments. However, it is up to you whether you will implement the recommended changes to the specific investments and allocations or not. The advisor never monitors or calls you proactively when change occurs.

Your advisor and you can both co-manage your investments:

In this option, the advisor executes most of the work, ie, analysis, recommendations, investment implementations etc., except the employer retirement accounts, where you make specific changes. The advisor monitors your asset allocation and investments constantly and reports to you frequently about the performance of your portfolio. If any problems arise, they take pro-active steps and contact you to discuss the problem.

Money manager who can take your investment decisions:

In terms of money managing, you are just an observer who will observe the process and the results of investments, as they invest money (according to the pre-determined plan), monitor your portfolio and take investment decisions on your behalf.

You can take advice from a sales professional who earns money when a product is sold to you:

As per this approach, the salesperson demands commission for the advice s/he has given to you. In fact, if any issue arises and you need to change investments, they can charge you another commission.

These are the top five options for investing your money, from where you can choose one and try the investment process according to that option. Before selecting the perfect investment option for you, make sure it is indeed perfect for you.