Sunday, May 2, 2010

Ts400 Stihl 12 Convert To 14

Who else wants to know the ranking of financial investment?

readers regularly write to me asking me what I think of such an investment they want to achieve . Is this the best investment in their situation? To any other investment should they turn? For you there, here are the types of investments, with their lives, their risks and potential returns. Interest? You'll find it easier and facilitate your choice.

Classement placements financiers You will not often see this type of classification. On the one hand because a professional has rarely all these products. Why do you boast the merits of a product he can sell you? On the other hand, when the risk increases, the performance may be debatable, depending on the time or the market in question. I start and give you my opinion on the subject.

You notice by first looking at the chart below a dozen major types of investments available to you. Some of these investments can be broken down, with returns and risks vary. Example: If you invest in unit-linked life insurance, your risks are not the same if you put your money on trackers Fellowship industrialized countries or out of funds very exotic and risky.

You see then that the assessment data are related. A savings account earns you do not really the same as a life insurance fund in euros. But compared to other investments, and given that their yields fluctuate over time, these investments are in the same range of yields.

No
Placement Maturity Yield Risks
bearing account Court No term +
Savings Account Short Term Housing No +
Term Deposit Account Short or medium term No + +
Booklet 'Medium term savings No + +
Savings Plan Housing Medium term No + + +
Life Insurance in euro fund Long Term + + +
Bonds Medium or long term Low to high + + +
Investment in gold Long term Low + +
Estate Long Term Rental Low to high + + + +
Life unit-linked Long Term Low to high + + + +
Exchange Long term High +++++

Third, the durations of these investments are also indicative. You can play the stock market over the short term or buy real estate to be sold quickly. But in this case it is speculation. The risks are higher and earnings are not reproducible (eg housing bubble). But the purpose of this comparison is to remain valid over time.

Finally, by reading this ten types of investments, you're probably wondering what distribution you must take these products. My opinion is that you must always keep some diversification. Do not put all your eggs in one basket. If you're young, you have time to take risks. Diversify to reduce your risk would be therefore cons-productive. You must diversify but not too much if you kill your performance. Once your goals achieved, or close to being, you want to improve safety by cons, and reduce your risk by diversifying your investments more.

Depending on your financial goals, using this table you will know what investments are available to you. You will then need to choose between performance, risk and duration. I hope that with this table the choices are clearer for you.

Which of the following investments do you have in the portfolio? Which did not you think? On which you would like more information? What is your strategy and your ideal distribution of these investments?

Photo credit: Paulo Brandão

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