When, Where, and How to Invest

The finals step is the execution... Just where? When? How do we let go of our hard earned money to the chosen fields of investments?

Earlier, we tackled the first two steps (Education and Investment Plan) which is a prerequisite to this final step with major consideration on the basic foundation of your financial plan: Protection and Long Term Health Care, Emergency Fund Build Up , and Debt Management.

Again, do not venture into investing unless you are clear with the first two steps. It's suicidal and certainly not much different to betting your money on a game of chance.

With that said and laid out, you are on your way to the final steps.

So WHERE do we invest? Key to investing is DIVERSITY. Make sure your chosen fields really do match up with your timing and risk capability. The younger you are , the higher risk you can take and investing on Stocks is a good avenue for your major investments. If you are in the age range of 40-50 you might need to have partly stocks equity and partly more secured funds or more liquid funds. If you are in the above 60 range, you need to be more conservative in your investments like mutual funds, government issued security bonds.

Note, putting money as savings deposit in the bank is not a wise investment. It's a sure loss.

Other investment opportunities are Real Estate, Food Cart, Franchising, etc.

In all of these, you have to make sure you are in the know and has a coach till you gain confidence in your capabilities.

After knowing where to invest, you need to make sure there is constant build up of your investments. You need to let go of your cash into your investments. Start small and then regularly build up your investments. Match the timing with your cash flow. You will note that the earlier you start with this, the lesser amount of money you will need to constantly flow in to your investments. Thus, do not procrastinate... just do it.

In stocks investing, there are two school of thoughts: Money Cost Averaging and Trading. The former is for beginners and the latter is for those who has gained knowledge and experience. So timing for the former is a regular constant flow. While the latter timing is wait and see, analyze and move. This is very stressful and thus I will even consider dangerous to your health specially if you have a heart condition.

There you are, the basic overview of investing. If you would like to know more details and want to be coached, please feel free to contact us.

God bless.